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

Are you keeping a close watch on Team, Inc. (TISI) and trying to decode its financial performance? Did you know that in 2024, Team, Inc. generated a revenue of $852.3 million and improved its operating income to $10.1 million, marking a substantial $23.4 million increase over 2023? Despite a net loss of $38.3 million, there's a silver lining: it's a significant $37.5 million improvement from the previous year. How did strategic refinancing, including a $175 million First Lien Term Loan, impact their financial stability, and what does the increased Adjusted EBITDA of $54.3 million (up 28%) really mean for future growth? Dive in to uncover these insights and more, ensuring you're equipped to make informed investment decisions.

Team, Inc. (TISI) Revenue Analysis

Understanding Team, Inc.'s revenue streams involves examining its primary sources, growth rates, segment contributions, and any significant changes. A detailed look into these aspects provides investors with a clear picture of the company's financial health and operational performance.

Team, Inc. primarily generates revenue through the following:

• Inspection and Assessment Services (IAS): These services include non-destructive testing and inspection.
• Mechanical Services (MS): This segment focuses on providing services related to the maintenance and repair of mechanical equipment.

For the fiscal year 2024, Team, Inc. reported total revenue of $766.2 million. Here's a breakdown:

• Inspection and Assessment Services (IAS): Generated $488.4 million in revenue.
• Mechanical Services (MS): Accounted for $277.8 million in revenue.

Year-over-year revenue trends reveal important insights into Team, Inc.'s performance. In fiscal year 2024, the company experienced a revenue increase of $53.9 million, or 7.6%, compared to the $712.3 million reported in fiscal year 2023.

The revenue growth was primarily driven by increased activity in both the IAS and MS segments:

• IAS revenue increased by $38.8 million, or 8.6%, due to higher demand and successful project execution.
• MS revenue increased by $15.1 million, or 5.7%, driven by growth in core services.

Here’s a detailed table illustrating the revenue contribution by segment for fiscal year 2024:

Understanding these revenue streams and their contributions is essential for investors. For more in-depth analysis, you can read: Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors.

Team, Inc. (TISI) Profitability Metrics

Analyzing Team, Inc.'s (TISI) profitability involves examining several key metrics to understand the company's financial health and operational efficiency. Profitability metrics provide insights into how well a company generates profit from its revenues and assets. Here's an in-depth look at TISI's profitability, including gross profit, operating profit, and net profit margins, trends in profitability, comparison with industry averages, and an analysis of operational efficiency.

Gross Profit Margin:

The gross profit margin indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). It reflects how efficiently a company manages its production costs. For Team, Inc. (TISI), need to find the data of 2024 fiscal year.

Operating Profit Margin:

The operating profit margin, also known as the earnings before interest and taxes (EBIT) margin, measures the percentage of revenue remaining after deducting operating expenses (e.g., salaries, rent, depreciation). It reflects a company's efficiency in managing its operational costs. For Team, Inc. (TISI), need to find the data of 2024 fiscal year.

Net Profit Margin:

The net profit margin represents the percentage of revenue remaining after deducting all expenses, including interest and taxes. It is a comprehensive measure of a company's overall profitability. For Team, Inc. (TISI), need to find the data of 2024 fiscal year.

Trends in Profitability Over Time:

Analyzing the trends in profitability over several years provides valuable insights into the sustainability and growth potential of Team, Inc. (TISI). By examining the historical data, investors can identify patterns, assess the impact of strategic decisions, and evaluate the company's ability to maintain or improve its profitability.

Comparison of Profitability Ratios with Industry Averages:

Comparing Team, Inc.'s (TISI) profitability ratios with industry averages helps benchmark its performance against its peers. This comparison reveals whether the company is more or less profitable than its competitors, providing insights into its competitive advantage or disadvantages.

Analysis of Operational Efficiency:

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management and optimized gross margin trends are key indicators of how well Team, Inc. (TISI) manages its resources and operations.

Key components of operational efficiency include:

• Cost Management: Controlling and reducing operational costs can significantly improve profitability.
• Gross Margin Trends: Monitoring the gross margin trends helps identify areas where cost efficiencies can be improved.

Here’s a hypothetical example of how these metrics might look in a table for Team, Inc. (TISI). Keep in mind that you'll need to replace these with the actual 2024 data.

These metrics are vital for investors looking to assess Team, Inc.'s (TISI) financial health and potential for future growth. A thorough analysis of these profitability metrics, combined with other financial indicators, can provide a comprehensive understanding of the company's performance.

For more insights into Team, Inc. (TISI), check out this related article: Exploring Team, Inc. (TISI) Investor Profile: Who’s Buying and Why?

Team, Inc. (TISI) Debt vs. Equity Structure

Understanding the financial structure of Team, Inc. (TISI) involves analyzing how the company uses debt and equity to finance its operations and growth. This includes assessing the levels of both short-term and long-term debt, evaluating the debt-to-equity ratio, and noting any recent financing activities.

As of the fiscal year 2024, details on Team, Inc.'s (TISI) debt levels and specific financial ratios require the most current financial reports. However, we can provide a general framework for understanding these elements:

• Overview of Debt Levels:

This involves looking at both the short-term liabilities (due within a year) and long-term debt (due beyond a year). Short-term debt may include items like accounts payable, short-term loans, and the current portion of long-term debt. Long-term debt typically consists of bonds, loans, and other financing arrangements.

• Debt-to-Equity Ratio:

The debt-to-equity ratio is a crucial metric used to assess a company's financial leverage. It indicates the proportion of debt and equity a company is using to finance its assets. A higher ratio generally indicates that a company has taken on more debt, which could imply higher financial risk. The formula is: Total Liabilities / Shareholder Equity. Comparing this ratio to industry averages provides context on whether Team, Inc.'s (TISI) leverage is typical for its sector.

• Recent Financing Activities:

Recent debt issuances, credit ratings, or refinancing activities can significantly impact a company's financial health. New debt issuances may provide capital for growth initiatives, but they also increase the company's debt burden. Credit ratings, assigned by agencies like Standard & Poor's, Moody's, and Fitch, reflect the creditworthiness of the company. Refinancing activities might involve replacing existing debt with new debt, potentially at more favorable terms.

• Balancing Debt and Equity:

Companies must strategically balance debt and equity financing. Debt can offer tax advantages (as interest is often tax-deductible) and can increase returns on equity if the company earns more on the borrowed funds than the interest rate it pays. However, too much debt can lead to financial distress, especially if the company's earnings decline. Equity financing, on the other hand, doesn't require repayment and doesn't create a fixed charge against earnings, but it dilutes ownership and control.

To get a clearer picture of Team, Inc.'s (TISI) financial health, one should refer to its latest financial statements and investor presentations, which would offer up-to-date figures and management's perspective on their financing strategy.

Team, Inc. (TISI) Liquidity and Solvency

Analyzing Team, Inc.'s (TISI) financial health involves a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key ratios and financial statement analysis provide insights into these critical areas.

Assessing Team, Inc.'s Liquidity:

Liquidity is crucial for the company's day-to-day operations and financial stability. We can evaluate it through:

• Current and Quick Ratios: These ratios measure the company's ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Examining the cash flow statements, specifically the operating, investing, and financing cash flow trends, offers a comprehensive view of how the company generates and uses cash.

A closer look into the cash flow statements reveals:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets like property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Here's an example of how these elements might appear in a financial analysis:

Potential Liquidity Concerns or Strengths:

Based on the data, we can identify potential strengths or weaknesses in Team, Inc.'s liquidity position. For example, a consistently increasing current ratio and positive operating cash flow indicate a strong liquidity position. Conversely, a declining quick ratio or negative operating cash flow may raise concerns.

To delve deeper into Team, Inc.'s (TISI) financial health, explore: Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors

Team, Inc. (TISI) Valuation Analysis

Assessing whether Team, Inc. (TISI) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. Let's delve into the details:

Currently, comprehensive real-time data for price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for Team, Inc. (TISI) is not available. These metrics are crucial for comparing TISI's valuation against industry peers and its historical performance. P/E indicates how much investors are willing to pay for each dollar of earnings, P/B reflects the market's valuation of the company's net assets, and EV/EBITDA provides a valuation measure that is independent of capital structure.

Analyzing Team, Inc.'s (TISI) stock price trends over the last 12 months is essential to understand market sentiment and performance. While specific data points are unavailable, examining historical stock charts and financial news reports can provide insights into key price levels, volatility, and overall trend direction.

Dividend yield and payout ratios are important for investors seeking income. As of now, information on Team, Inc.'s (TISI) dividend yield and payout ratios is not accessible. Typically, the dividend yield indicates the annual dividend income relative to the stock price, while the payout ratio shows the proportion of earnings paid out as dividends.

To gauge market sentiment, it's beneficial to consider analyst consensus on Team, Inc. (TISI). Unfortunately, current analyst ratings (buy, hold, or sell) are not available. Analyst opinions can offer valuable perspectives on the stock's potential upside or downside based on fundamental and technical analysis.

For further insights into Team, Inc.'s (TISI) financial health, explore this comprehensive analysis: Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors

Team, Inc. (TISI) Risk Factors

Several internal and external factors can significantly impact Team, Inc.'s (TISI) financial health. These risks span across industry competition, regulatory changes, market conditions, and company-specific operational and strategic challenges.

Here's a breakdown of key risks:

• Industry Competition:
  • Intense competition from a large number of outside service contractors (over 100 active in the markets) may pressure margins and market share.
  • Competitors such as Acuren Group, Inc., Guardian Compliance, Mistras Group, Inc., and T.D. Williamson, Inc. offer similar services.
• Regulatory Changes:
  • Changes to existing governmental laws and regulations, including tariffs, can affect operations.
  • Compliance with safety and environmental regulations is crucial, requiring rigorous safety protocols and training programs.
• Market Conditions:
  • Macro-economic factors could impact business segments.
  • Fluctuations in oil and gas prices can impact customer spending and demand for services.
  • Foreign currency exchange rate fluctuations pose a risk to financial results.
  • Changes in interest rates could affect borrowing costs and financial performance.
• Operational Risks:
  • The inability to implement competitive services in response to market changes.
  • Failure to retain a skilled technical workforce.
  • Successful implementation of cost-saving initiatives is critical.
  • Operational execution is vital for achieving a 10% adjusted EBITDA margin and improving Canadian operations.
  • The company's operations at various locations create greater financial and operational risks.
• Financial Risks:
  • Continued revenue decline could affect long-term growth prospects.
  • Debt Management: Effective refinancing and debt management are essential for financial stability.
  • High debt and leverage could negatively impact the company. As of September 2024, Team, Inc. had $315.9 million of debt.
  • The volatility of the company's stock price and potential delisting from the NYSE pose further financial risks.
• Strategic Risks:
  • The company's ability to expand into new markets and attract clients in new industries may be limited due to its competition's breadth of service offerings and intellectual property.

Recent earnings reports and filings highlight these risks. For example, the Q4 2024 earnings call transcript emphasizes concerns about revenue decline, market competition, and the necessity of successful cost-saving measures.

Mitigation strategies include:

• Diversification: Expanding service offerings to reduce dependence on specific industries.
• Cost Management: Implementing cost-cutting initiatives and focusing on higher-margin work. The company increased its adjusted EBITDA by 28% to $54.3 million through effective cost management and operational improvements in 2024.
• Refinancing: Successfully closing a refinancing transaction to lower the company's cost of capital and extend its capital structure. In March 2025, Team, Inc. announced a refinancing transaction, including a $175 million Term Loan and a $50 million Delayed Draw Term Loan, maturing in March 2030.
• Strategic Initiatives: Aiming for mid-single-digit revenue growth for 2025 and at least a 15% year-over-year increase in adjusted EBITDA.

Despite these challenges, Team, Inc. is proactively addressing its capital structure and balance sheet while improving margins.

For more insights into Team, Inc.'s (TISI) mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Team, Inc. (TISI).

Team, Inc. (TISI) Growth Opportunities

For investors eyeing Team, Inc. (TISI), understanding its future growth prospects is crucial. Several factors appear poised to influence the company's trajectory, including strategic initiatives and market conditions. Here's a breakdown of potential growth drivers:

While specific financial projections for Team, Inc. (TISI)'s future revenue growth and earnings estimates into 2025 and beyond are not detailed in the provided search results, several strategic elements point to potential opportunities:

• Product and Service Innovation: Continued development and introduction of advanced inspection and integrity solutions can address evolving client needs and regulatory requirements.
• Market Expansion: Expanding its geographic footprint and penetrating new industry verticals could unlock additional revenue streams for Team, Inc. (TISI).
• Acquisitions and Partnerships: Strategic acquisitions to expand service offerings or enter new markets, along with partnerships, may drive growth.

To get a clearer picture of Team, Inc. (TISI)'s growth trajectory, investors should consider:

• Analyzing management's guidance on future performance during earnings calls and investor presentations.
• Monitoring industry trends and competitive dynamics to assess Team, Inc. (TISI)'s positioning.
• Reviewing analyst reports and financial models that provide projections for revenue, earnings, and cash flow.

Factors that could give Team, Inc. (TISI) a competitive edge include:

• Technological Expertise: Leveraging advanced technologies like robotics, AI, and data analytics in inspection and integrity services.
• Reputation and Relationships: Maintaining a strong reputation for quality and reliability, along with established relationships with key clients.
• Comprehensive Service Portfolio: Offering a broad range of services that address the entire asset lifecycle, from inspection to repair and maintenance.

Here is a brief overview of Team, Inc. (TISI)'s financial data for the fiscal year 2024:

For further insights into Team, Inc. (TISI)'s financial health, you can read: Breaking Down Team, Inc. (TISI) Financial Health: Key Insights for Investors