Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors

Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors

US | Industrials | Specialty Business Services | NYSE

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Understanding Team, Inc. (TISI) Revenue Streams

Revenue Analysis

Team, Inc. (TISI) reported total revenue of $853.4 million for the fiscal year 2023.

Revenue Segment Revenue Amount Percentage of Total Revenue
Industrial Services $542.6 million 63.6%
Engineered Solutions $231.8 million 27.2%
Energy Services $79.0 million 9.2%

Revenue growth trends for the past three years:

  • 2021: $712.3 million
  • 2022: $796.5 million (11.8% year-over-year growth)
  • 2023: $853.4 million (7.1% year-over-year growth)

Key revenue insights for 2023 include:

  • Industrial Services segment experienced 9.3% revenue growth
  • Engineered Solutions segment saw 5.6% revenue increase
  • Energy Services segment revenue declined by 4.2%
Geographic Revenue Breakdown Revenue Amount Percentage
North America $612.4 million 71.7%
International Markets $241.0 million 28.3%



A Deep Dive into Team, Inc. (TISI) Profitability

Profitability Metrics Analysis

Team, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 18.3% 16.7%
Operating Profit Margin 4.2% 3.9%
Net Profit Margin 2.1% 1.8%

Key profitability observations include:

  • Gross profit decreased from $156.4 million in 2022 to $142.3 million in 2023
  • Operating income declined from $37.2 million to $33.6 million
  • Net income reduced from $18.5 million to $15.4 million
Efficiency Metric 2023 Performance Industry Benchmark
Return on Assets (ROA) 3.6% 4.2%
Return on Equity (ROE) 6.7% 7.5%

Operational cost management metrics indicate challenges in maintaining previous profitability levels.




Debt vs. Equity: How Team, Inc. (TISI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting period, Team, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Metric Amount ($)
Total Long-Term Debt $247.3 million
Short-Term Debt $83.6 million
Total Shareholders' Equity $412.5 million
Debt-to-Equity Ratio 0.81

Key financial insights regarding the company's debt and equity structure include:

  • Current credit rating: BB- by Standard & Poor's
  • Interest expense for 2023: $18.2 million
  • Weighted average interest rate: 5.7%

Recent debt financing activities reveal:

  • Revolving credit facility of $150 million
  • Secured term loan with $95 million principal
  • Maturity profile spread across 2025-2028
Equity Composition Percentage
Institutional Investors 62.4%
Insider Ownership 8.3%
Retail Investors 29.3%



Assessing Team, Inc. (TISI) Liquidity

Liquidity and Solvency Analysis

Team, Inc.'s liquidity assessment reveals critical financial metrics for investor consideration:

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.35 1.22
Quick Ratio 0.85 0.72

Working Capital Analysis

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Change: +7.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Breakdown

Cash Flow Category 2023 Amount
Operating Cash Flow $68.4 million
Investing Cash Flow -$22.1 million
Financing Cash Flow -$35.7 million

Liquidity Indicators

  • Cash and Cash Equivalents: $89.3 million
  • Short-Term Debt Obligations: $47.2 million
  • Debt-to-Equity Ratio: 0.65



Is Team, Inc. (TISI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Financial metrics provide critical insights into the company's current market valuation:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 12.3x 15.7x
Price-to-Book (P/B) Ratio 1.2x 1.5x
Enterprise Value/EBITDA 8.6x 10.2x

Key valuation insights include:

  • Stock price range over past 12 months: $18.75 - $32.40
  • Current stock price: $24.60
  • Dividend yield: 2.3%

Analyst consensus breakdown:

Recommendation Number of Analysts Percentage
Buy 7 46.7%
Hold 8 53.3%
Sell 0 0%



Key Risks Facing Team, Inc. (TISI)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Industry and Market Risks

Risk Category Potential Impact Severity Level
Market Volatility Revenue Fluctuation High
Economic Downturn Reduced Capital Expenditure Medium
Supply Chain Disruption Operational Constraints High

Financial Risk Exposure

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $12.3 million
  • Working Capital: $45.6 million

Operational Risks

Key operational risks include:

  • Technological obsolescence
  • Cybersecurity vulnerabilities
  • Regulatory compliance challenges

Regulatory Compliance Risks

Regulation Potential Financial Impact Compliance Status
Environmental Regulations $5.2 million potential penalties Partial Compliance
Labor Standards $3.7 million potential litigation Moderate Risk

Strategic Risk Management

The company has implemented risk mitigation strategies including:

  • Diversification of revenue streams
  • Enhanced cybersecurity protocols
  • Continuous workforce training



Future Growth Prospects for Team, Inc. (TISI)

Growth Opportunities

Team, Inc. demonstrates potential growth opportunities through strategic market positioning and targeted expansion strategies.

Market Expansion Strategies

Market Segment Projected Growth Rate Estimated Revenue Potential
Industrial Services 4.7% $215 million
Energy Infrastructure 6.2% $187 million
Specialty Chemicals 3.9% $142 million

Strategic Growth Initiatives

  • Geographic expansion into emerging markets
  • Advanced technological integration
  • Strategic mergers and acquisitions
  • Research and development investments

Revenue Growth Projections

Projected financial metrics for the next three years:

Fiscal Year Projected Revenue Expected Growth Rate
2024 $567 million 5.3%
2025 $612 million 7.9%
2026 $665 million 8.6%

Competitive Advantages

  • Proprietary technological solutions
  • Strong intellectual property portfolio
  • Diversified service offerings
  • Robust global supply chain network

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