Team (TISI) AI Stock Analysis

• Market Cap: $89.87M
• Dividend Yield: N/A
• Average Volume (3M): 30.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -1.20%
• EPS Growth: 50.12%
• Country: US
• Employees: 5,400
• Sector: Industrials
• Sector Strength: 61
• Industry: Specialty Business Services
• EPS (TTM): -8.64
• Shares Outstanding: 4,493,391
• 10 Day Avg. Volume: 48,873
• 30 Day Avg. Volume: 30,031
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.09
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Team, Inc. (TISI) is dealing with substantial financial challenges, including high leverage and poor profitability. Despite these issues, recent technical indicators suggest positive momentum in the stock price. The earnings call added some optimism with improvements in adjusted EBITDA and successful refinancing improving financial flexibility. However, valuation metrics remain unfavorable due to the negative P/E ratio. Overall, while operational efforts are yielding some positive results, significant financial risks persist, leading to a moderate stock score.

Team Business Overview & Revenue Model

Company Description

Team, Inc., together with its subsidiaries, provides asset performance assurance and optimization solutions in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT), Mechanical Services (MS), and Quest Integrity segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic testing, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, heat treating, and robotics and inspection services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services for pipes, valves, and flanges, as well as other parts of piping systems, pipelines, and related assets. The Quest Integrity segment provides furnace tube inspection system-enabled, in-line inspection, pipeline integrity management, engineering and condition assessment, and robotics and inspection services. It also offers onstream services comprising of line stopping and on-line valve insertion solutions. The company serves refining, power, renewables, nuclear, liquefied natural gas, chemical, petrochemical, pulp and paper, automotive, mining, valves, terminals and storage, pipeline, offshore oil and gas, and aerospace and defense industries, as well as amusement parks, bridges, ports, construction and buildings, roads, dams, and railways. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.

How the Company Makes Money

Team, Inc. generates revenue primarily through the provision of its industrial services, which include inspection and assessment, mechanical services, and repair solutions. The company operates through several business segments, including Inspection and Heat Treating, Mechanical Services, and Quest Integrity. Each segment offers specialized services tailored to meet the needs of its clients in various sectors. Key revenue streams are derived from long-term contracts, project-based engagements, and ongoing maintenance services. Additionally, Team, Inc. may benefit from strategic partnerships and alliances that enhance its service offerings and expand its market reach, contributing to its overall earnings.

Team Financial Statement Overview

Summary

Team (TISI) is facing substantial financial challenges with negative net income, high leverage, and declining revenues. Despite improvements in cash flow, profitability and debt levels remain concerning. The income statement shows continuous net losses, the balance sheet indicates significant debt, and the cash flow statement underscores struggles in cash generation.

Income Statement

The income statement shows a challenging financial position with negative net income consistently over the past years. The gross profit margin for the latest period is 26.19%, indicating some ability to cover costs, but the net profit margin remains negative at -4.49% for 2024. Revenue has slightly decreased over the past year, with a decline of 1.20% from 2023 to 2024, reflecting stagnant sales growth. EBIT and EBITDA margins are also low, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 211.96 for 2024, suggesting significant reliance on debt financing. The equity ratio is a mere 0.33%, indicating minimal equity compared to assets, which is a risk factor. The return on equity is deeply negative at -2201.15% for 2024, highlighting the company's inability to generate profits from shareholders' equity.

Cash Flow

The cash flow statement shows some improvement, with free cash flow turning positive to $13.30 million in 2024. Operating cash flow has improved significantly from negative $10.99 million in 2023 to positive $22.77 million in 2024, yielding an operating cash flow to net income ratio of -0.59. Despite this, the free cash flow to net income ratio remains negative at -0.35, indicating challenges in converting reported earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
852.27M	862.62M	840.21M	874.55M	852.54M
	Gross Profit
223.15M	211.15M	201.61M	214.44M	238.71M
	EBIT
10.14M	-13.28M	-31.63M	-58.43M	-24.72M
	EBITDA
49.11M	21.91M	-24.13M	-88.47M	-176.19M
	Net Income Common Stockholders
-38.27M	-75.72M	-150.09M	-186.02M	-237.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.55M	35.43M	58.08M	65.31M	24.59M
	Total Assets
528.37M	565.74M	616.64M	704.49M	730.98M
	Total Debt
368.53M	355.62M	285.94M	405.86M	312.50M
	Net Debt
332.99M	320.19M	227.86M	340.55M	287.91M
	Total Liabilities
526.63M	520.15M	498.88M	652.62M	516.37M
	Stockholders Equity
1.74M	45.60M	117.76M	51.87M	214.60M
Cash Flow		Free Cash Flow
13.30M	-21.42M	-82.63M	-53.06M	32.81M
	Operating Cash Flow
22.77M	-10.99M	-57.94M	-35.45M	52.76M
	Investing Cash Flow
-9.30M	-10.02M	243.36M	-14.08M	-18.30M
	Financing Cash Flow
-12.75M	-1.90M	-191.97M	91.85M	-23.46M

Team Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TISI, the sentiment is Positive. The current price of 20.75 is above the 20-day moving average (MA) of 17.19, above the 50-day MA of 16.74, and above the 200-day MA of 15.25, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 73.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TISI.

Team Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBR	73 Outperform	$6.55B	18.10	26.45%	1.22%	11.30%	―
FLR	72 Outperform	$5.84B	2.84	72.85%	―	5.43%	2094.12%
PWR	72 Outperform	$39.95B	44.71	13.32%	0.14%	13.36%	20.00%
J	62 Neutral	$14.53B	24.42	10.92%	1.07%	-13.76%	-13.39%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
EXPO	61 Neutral	$4.05B	37.75	28.05%	1.43%	4.05%	8.71%
TISI	55 Neutral	$89.87M	―	-161.69%	―	-1.20%	50.12%

Team Corporate Events

Team, Inc. Completes Refinancing to Enhance Flexibility

On March 12, 2025, Team, Inc. announced the successful completion of a refinancing transaction that lowers its cost of capital and extends its debt maturities. The transaction includes a First Lien Term Loan Facility provided by HPS Investment Partners, LLC, and a Second Lien Term Loan from Corre Partners Management, LLC, both maturing in 2030. This financial restructuring is expected to improve Team’s financial flexibility, enabling the company to focus on growth and cost management initiatives, thereby creating long-term value for shareholders.