Team (TISI) AI Stock Analysis

• Market Cap: $67.47M
• Dividend Yield: N/A
• Average Volume (3M): 9.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 3.73%
• EPS Growth: 3.56%
• Country: US
• Employees: 5,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -1.47
• Shares Outstanding: 4,571,382
• 10 Day Avg. Volume: 7,617
• 30 Day Avg. Volume: 9,084
• PEG Ratio: -0.04
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -3.08
• Enterprise Value/Market Cap: 5.91
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 8.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $14.00 ▼(-1.48% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily constrained by stressed financial fundamentals—high leverage with negative equity and uneven cash flow—despite signs of improving operations. Technicals are neutral-to-mildly positive near term but still weak longer term, while valuation is hard to support with a negative P/E and no dividend. Earnings-call commentary was net positive on execution and liquidity actions, but visibility remains limited without formal FY2026 guidance.

Positive Factors

Capital structure improvement

Lowering blended interest by >100bps and extending maturities to 2030 materially reduces near-term refinancing pressure and interest expense. Combined with increased ABL capacity and $77.4M liquidity, this improves financial flexibility, making sustained investment, working-capital management, and gradual deleveraging more feasible over multiple quarters.

Stabilizing revenue & EBITDA growth

Consistent top-line growth and a ~12% rise in adjusted EBITDA to $60.7M show improving operational execution and incremental margin capture. This trend—backed by Q4 revenue and operating-income gains—supports a durable improvement in core profitability if management sustains cost discipline and revenue mix gains across core segments.

Experienced new CEO & strategic focus

Appointment of a veteran CEO focused on margin expansion, free cash flow and working-capital improvements increases the odds of consistent execution on multi-quarter operational fixes. The combination of industry experience and performance-linked equity incentives supports credible management alignment for sustainable structural improvements.

Negative Factors

Weak balance sheet

High absolute debt and negative equity materially weaken financial flexibility and elevate refinancing and solvency risk. Even with recent improvements, a leveraged balance sheet constrains capital allocation, increases sensitivity to cash-flow volatility, and requires sustained deleveraging to restore a durable margin of safety over several quarters.

Inconsistent cash generation

Alternating positive and negative operating and free cash flows reduce the firm's ability to reliably service debt, fund working capital, and invest in growth without external financing. This inconsistent cash-generation pattern raises the structural need for continued liquidity reserves or financing options to manage seasonality and deleveraging plans.

Margins below target & financing complexity

Adjusted EBITDA margin remaining near 7% keeps underlying profitability short of the company’s >10% target, limiting organic deleveraging capacity. Combined with only modest net-debt reduction and a preferred/warrant private placement, this creates potential dilution and financing complexity that can slow durable margin and balance-sheet recovery.

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

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Team Financial Statement Overview

Summary

Financial profile is pressured by a weak balance sheet (high debt and negative equity) and inconsistent cash generation (recent negative operating and free cash flow). Revenue has improved and margins are relatively steady, but profitability and cash-flow durability remain insufficient relative to leverage.

Income Statement

Revenue has stabilized and improved recently (2025 annual revenue up ~30% after a flat 2024), and gross margin has held in the mid‑20% range. However, profitability remains weak: 2025 shows a net loss of ~$52.7M (about -5.9% margin) and operating profitability is thin with EBITDA margin ~1.6% (down sharply vs. ~5.5% in 2024). Overall, the company is showing top-line momentum but still lacks consistent, durable earnings power.

Balance Sheet

Leverage is the key concern. Total debt remains high (~$350M in 2025), while stockholders’ equity has deteriorated to negative (~-$24.5M in 2025) after being near break-even in 2024, which materially weakens balance-sheet flexibility. Total assets have also trended down from 2020–2025, and the combination of high debt and negative equity elevates refinancing/solvency risk despite some prior-year improvement from 2021–2023.

Cash Flow

Cash generation is inconsistent. 2025 annual operating cash flow turned negative (~-$11.3M) and free cash flow was also negative (~-$20.6M), reversing the positive cash flow seen in 2024. While free cash flow has improved versus deeper deficits in 2021–2022, the pattern of alternating positive/negative years suggests limited cash flow reliability and reduces the margin of safety given the company’s leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	896.48M	852.27M	862.62M	840.21M	794.20M
Gross Profit	210.12M	223.15M	211.15M	201.61M	171.50M
EBITDA	49.62M	46.87M	25.24M	-2.59M	-36.69M
Net Income	-49.21M	-38.27M	-75.72M	70.08M	-186.02M
Balance Sheet
Total Assets	485.45M	528.37M	565.74M	616.64M	706.54M
Cash, Cash Equivalents and Short-Term Investments	18.14M	35.55M	35.43M	58.08M	55.19M
Total Debt	349.59M	368.53M	355.62M	338.58M	468.88M
Total Liabilities	457.98M	526.63M	520.15M	498.88M	654.68M
Stockholders Equity	27.47M	1.74M	45.60M	117.76M	51.87M
Cash Flow
Free Cash Flow	-20.64M	13.30M	-21.42M	-77.90M	-53.06M
Operating Cash Flow	-11.35M	22.77M	-10.99M	-53.21M	-35.45M
Investing Cash Flow	-9.06M	-9.30M	-10.02M	243.36M	-14.08M
Financing Cash Flow	2.81M	-12.75M	-1.90M	-191.97M	91.85M

Team Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 14.21 is below the 20-day moving average (MA) of 14.38, below the 50-day MA of 14.28, and below the 200-day MA of 16.12, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 41.78 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVEO	56 Neutral	$297.41M	-14.41	-12.34%	4.25%	-10.51%	-247.97%
DLHC	53 Neutral	$81.45M	-15.35	-0.95%	―	-12.99%	-81.86%
TISI	51 Neutral	$67.47M	-1.29	-1862.25%	―	3.73%	3.56%
SST	44 Neutral	$17.12M	-0.38	-131.65%	―	-20.49%	25.95%
PMEC	44 Neutral	$26.51M	-14.80	-12.54%	―	2.52%	45.76%
SGRP	44 Neutral	$18.10M	-0.69	-95.31%	―	-35.72%	-277.39%

Team Corporate Events

Team Announces CEO Transition and Consulting Severance Agreement

On January 26, 2026, Team, Inc. announced that Chief Executive Officer Keith Tucker would depart effective January 31, 2026, with the company clarifying that his termination was without cause and not due to any disagreement over operations, policies, or practices. On February 6, 2026, the company entered into a Severance and Consulting Agreement under which Tucker will receive 18 months of base salary, a 2025 performance-period bonus equivalent, a lump sum for health and welfare benefits, accelerated vesting of time-based restricted stock units, prorated performance share unit vesting, and a one-year consulting engagement for $375,000, all contingent on a general release of claims and his compliance with two-year non-compete and non-solicitation covenants.

The severance package underscores Team’s intention to ensure leadership continuity and protect corporate interests through extended restrictive covenants while maintaining alignment of equity incentives with performance criteria. For stakeholders, the structured payout schedule, continued performance-based vesting and consulting arrangement indicate an orderly CEO transition designed to minimize disruption and preserve executive institutional knowledge during the post-termination period.

The most recent analyst rating on (TISI) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Team stock, see the TISI Stock Forecast page.

Team Announces CEO Transition and Leadership Change

On January 26, 2026, Team, Inc. announced that longtime executive Keith Tucker will retire and step down as chief executive officer effective January 31, 2026, after more than 20 years with the company, with his departure described as amicable and not stemming from any dispute over operations or policies. As part of a planned leadership transition following a recent strategic investment by Stellex and against the backdrop of reaffirmed 2025 guidance, the board has appointed industrial-services veteran Gary Hill as CEO effective February 1, 2026, under a compensation package featuring a $750,000 base salary, significant performance-based equity incentives and enhanced severance protections, signaling a push to accelerate growth and margin improvement while maintaining continuity for employees, customers and shareholders.

The most recent analyst rating on (TISI) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Team stock, see the TISI Stock Forecast page.