Team (TISI) AI Stock Analysis

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Team

(NYSE:TISI)

Rating:44Neutral

Price Target:

$16.00

▼(-7.73% Downside)

TISI's overall score reflects significant financial and valuation risks. Despite some positive developments in the earnings call, ongoing financial instability and technical weakness weigh heavily on the stock's outlook.

Team (TISI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$77.38M

Dividend YieldN/A

Average Volume (3M)10.24K

Price to Earnings (P/E)―

Beta (1Y)0.33

Revenue Growth-1.00%

EPS Growth26.86%

CountryUS

Employees5,400

SectorIndustrials

Sector Strength84

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)-6.61

Shares Outstanding4,493,391

10 Day Avg. Volume6,063

30 Day Avg. Volume10,240

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap5.92

Enterprise Value/Revenue0.54

Enterprise Value/Gross Profit2.06

Enterprise Value/Ebitda-6.94

Forecast

1Y Price Target

$19.00

Price Target Upside9.57% Upside

Rating ConsensusHold

Number of Analyst Covering0

Team Business Overview & Revenue Model

Company DescriptionTeam, Inc. (TISI) is a leading provider of specialty industrial services focused on the maintenance and repair of critical infrastructure across various sectors, including refining, petrochemical, power, pipeline, and other heavy industries. The company offers a comprehensive range of services, including inspection, assessment, and repair solutions, with a strong emphasis on safety, reliability, and efficiency.

How the Company Makes MoneyTeam, Inc. generates revenue primarily through the provision of its specialized industrial services. The company's key revenue streams include inspection and assessment services, which help clients maintain the integrity of their infrastructure, and repair and maintenance services, which ensure the continued operation of critical assets. Team, Inc. collaborates with a diverse array of clients, providing tailored solutions that meet industry-specific standards and requirements, thereby reinforcing its position in the market. Revenue is largely driven by long-term contracts and partnerships with major industrial players, which provide a steady flow of work and income for the company.

Team Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: -18.17%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of achievements and challenges. While the company made significant progress in refinancing, cost savings, and segment-specific revenue growth, it faced flat overall revenue and ongoing losses. The balance between highlights and lowlights suggests a cautious optimism for future performance improvements.

Q1-2025 Updates

Positive Updates

Refinancing and Improved Capital Structure

The company completed a refinancing transaction in March 2025, lowering their blended interest rate by over 100 basis points and extending term loan maturities to 2030, which improved financial flexibility.

Midstream Revenue Growth

Revenue from midstream end markets grew by nearly 15% in the first quarter of 2025, indicating strong performance in this segment.

Inspection & Heat Treating Segment Growth

The segment delivered strong top-line growth, with revenue up 6.8% over the prior year and 8.8% in core U.S. operations. Adjusted EBITDA in this segment improved by 39% year-over-year.

Cost Discipline and Efficiency Improvements

The company reduced selling, general and administrative expenses by about $2 million compared to the prior year and initiated actions targeting $10 million in annualized cost savings.

Negative Updates

Flat Overall Revenue

Overall revenues were essentially flat year-over-year, with adverse weather in January negatively impacting top-line results.

Mechanical Service Segment Challenges

Lower callout revenue and delays in project and turnaround activity shifted revenue into future periods, which hindered growth in this segment.

Adjusted Net Loss

The company reported an adjusted net loss of $14.9 million for the first quarter, essentially flat with the first quarter of 2024.

Company Guidance

During the first quarter of 2025, Team Incorporated made significant strides in its strategic initiatives, achieving notable financial and operational results. The company reported a 15% increase in revenue from midstream end markets, while the Inspection & Heat Treating (IHT) segment saw a 6.8% rise in revenue over the prior year, with a notable 22% growth in higher-margin heat treating services and 64% from laboratory testing in Cincinnati. Despite overall flat year-over-year revenues due to seasonal and adverse weather impacts, Team delivered an adjusted EBITDA of $5.3 million and reduced selling, general, and administrative expenses by $2 million. The refinancing completed in March 2025 reduced the blended interest rate by over 100 basis points and extended term loan maturities to 2030, improving financial flexibility. Additionally, the company is targeting annualized cost savings of $10 million from ongoing strategic actions, aiming for at least a 15% year-over-year growth in adjusted EBITDA and progressing towards a 10% adjusted EBITDA margin.

Team Financial Statement Overview

Summary

The financial performance of TISI is notably poor, with negative EBIT, net income, and significant leverage. Negative stockholders' equity and high debt-to-asset ratio reflect financial instability, making this a high-risk investment.

Income Statement

Negative

The income statement reveals significant challenges with profitability and revenue stability. The TTM shows a negative EBIT and net income, leading to negative margins. The gross profit margin is moderate at 26.03%, but the net profit margin is deeply negative due to high operating expenses. Revenue has fluctuated slightly, with a recent decline compared to previous periods, indicating limited growth potential.

Balance Sheet

Very Negative

The balance sheet indicates high financial risk with a negative stockholders' equity in the TTM, suggesting insolvency concerns. The debt-to-equity ratio is not calculable due to negative equity, but the presence of high total debt relative to total assets (77.35% debt-to-assets ratio) shows significant leverage. The equity ratio is negative, further highlighting financial instability.

Cash Flow

Negative

Cash flow analysis shows negative operating cash flow and free cash flow for the TTM, indicating cash generation issues. The free cash flow to net income ratio is not favorable, suggesting poor conversion of income to cash flow. The negative free cash flow growth rate further underscores liquidity challenges.

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
EBITDA	49.11M	21.91M	-24.13M	-88.47M	-176.19M
Net Income	-38.27M	-75.72M	-150.09M	-186.02M	-237.20M
Balance Sheet
Total Assets	528.37M	565.74M	616.64M	704.49M	730.98M
Cash, Cash Equivalents and Short-Term Investments	35.55M	35.43M	58.08M	65.31M	24.59M
Total Debt	368.53M	355.62M	285.94M	405.86M	312.50M
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

Negative

Last Price17.34

Price Trends

50DMA

18.36

Negative

100DMA

19.01

Negative

200DMA

17.86

Negative

Market Momentum

MACD

-0.41

Negative

RSI

45.00

Neutral

STOCH

56.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TISI, the sentiment is Negative. The current price of 17.34 is below the 20-day moving average (MA) of 17.44, below the 50-day MA of 18.36, and below the 200-day MA of 17.86, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TISI.

Team Risk Analysis

Team disclosed 31 risk factors in its most recent earnings report. Team reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Team Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMS	79 Outperform	$4.29B	15.13	17.36%	1.65%	5.29%	31.95%
ABM	75 Outperform	$0.00	37.23	4.30%	2.24%	3.52%	-67.27%
Sector *	64 Neutral	$10.63B	16.03	5.49%	2.12%	2.74%	-23.62%
ARMK	63 Neutral	$10.37B	29.26	12.00%	0.96%	-0.06%	3.83%
UNF	61 Neutral	$3.07B	21.11	7.15%	0.80%	4.18%	18.93%
CVEO	60 Neutral	$299.49M	19.41	-13.15%	4.21%	-10.60%	-201.64%
TISI	44 Neutral	$77.38M	―	-9999.00%	―	-1.00%	26.86%

* Industrials Sector Average

Performance Comparison

TISI

Team

17.22

7.92

85.16%

ABM

ABM Industries

46.97

-4.38

-8.53%

MMS

Maximus

76.06

-9.99

-11.61%

UNF

UniFirst

171.87

-11.26

-6.15%

ARMK

ARAMARK Holdings

39.56

5.29

15.44%

CVEO

Civeo

23.86

-1.96

-7.59%

Team Corporate Events

Executive/Board ChangesShareholder Meetings

Team Inc. Holds Annual Shareholders Meeting

Neutral

Jun 20, 2025

On June 18, 2025, Team, Inc. held its Annual Meeting of Shareholders where four proposals were considered. The shareholders re-elected two Class III directors, approved executive officer compensation for 2025, ratified KPMG LLP as the independent public accounting firm for the fiscal year ending December 31, 2025, and approved an amendment to the company’s Certificate of Incorporation regarding the removal of directors for cause.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025