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Team Inc. (TISI)
:TISI
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Team
(NYSE:TISI)
Rating:51Neutral
Price Target:
$20.50
▼( -4.30% Downside)
Team (TISI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$96.25M
Dividend YieldN/A
Average Volume (3M)23.81K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-1.00%
EPS Growth26.86%
CountryUS
Employees5,400
SectorIndustrials
Sector Strength90
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-6.61
Shares Outstanding4,493,391
10 Day Avg. Volume16,833
30 Day Avg. Volume23,807
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)53.08
Price to Sales (P/S)0.00
P/FCF Ratio7.80
Enterprise Value/Market Cap4.42
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.96
Enterprise Value/Ebitda3.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Team Business Overview & Revenue Model
Company DescriptionTeam, 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 MoneyTeam, 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, Inc. faces substantial financial challenges with persistent losses and high leverage. The income statement reflects declining revenues and net losses, the balance sheet shows significant debt, and despite improvements, the cash flow statement underscores cash generation struggles.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.42
Neutral
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.38
Negative
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.55
Neutral
| 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
Neutral
21.42
Price Trends
19.49
Negative
17.85
Positive
16.99
Positive
Market Momentum
0.09
Positive
39.94
Neutral
17.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TISI, the sentiment is Neutral. The current price of 21.42 is above the 20-day moving average (MA) of 21.13, above the 50-day MA of 19.49, and above the 200-day MA of 16.99, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 17.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $3.35B | 23.35 | 7.17% | 0.72% | 5.04% | 31.69% | |
76 Outperform | $4.15B | 14.66 | 17.36% | 1.63% | 5.29% | 31.95% | |
74 Outperform | $3.27B | 41.38 | 4.46% | 1.91% | 2.81% | -67.57% | |
71 Outperform | $10.43B | 30.61 | 11.77% | 1.00% | -3.47% | -45.03% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
60 Neutral | $284.00M | 19.41 | -8.41% | 4.82% | -5.62% | -175.97% | |
51 Neutral | $96.25M | ― | -9999.00% | ― | -1.00% | 26.86% |
* Industrials Sector Average
Performance Comparison
TISI
Team
21.42
14.04
190.24%
ABM
ABM Industries
51.35
5.04
10.88%
MMS
Maximus
73.69
-11.10
-13.09%
UNF
UniFirst
184.81
22.99
14.21%
ARMK
ARAMARK Holdings
38.88
7.61
24.34%
CVEO
Civeo
20.90
-2.30
-9.91%
Team Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 1.09%|
Next Earnings Date:Aug 07, 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 Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Team, Inc. Completes Refinancing to Enhance Flexibility
Positive
Mar 13, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.