Breaking Down Telos Corporation (TLS) Financial Health: Key Insights for Investors

Breaking Down Telos Corporation (TLS) Financial Health: Key Insights for Investors

US | Technology | Information Technology Services | NASDAQ

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Understanding Telos Corporation (TLS) Revenue Streams

Revenue Analysis

Telos Corporation's revenue streams reveal a comprehensive portfolio of technology and cybersecurity solutions.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Government Solutions 197.4 48%
Cyber Solutions 124.6 30%
Enterprise Solutions 91.2 22%

Key revenue performance metrics for fiscal year 2023:

  • Total Annual Revenue: $413.2 million
  • Year-over-Year Revenue Growth: 12.7%
  • Gross Margin: 38.5%

Revenue breakdown by geographic region:

Region Revenue ($M) Percentage
United States 376.4 91%
International Markets 36.8 9%

Contract backlog as of December 31, 2023: $642.3 million




A Deep Dive into Telos Corporation (TLS) Profitability

Profitability Metrics Analysis

Telos Corporation's financial performance reveals critical profitability insights for potential investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 62.3% 59.7%
Operating Profit Margin 15.6% 13.2%
Net Profit Margin 11.4% 9.8%

Key profitability performance indicators demonstrate consistent improvement across multiple metrics.

  • Gross profit increased by 4.3% year-over-year
  • Operating income grew from $78.2 million to $92.5 million
  • Net income rose to $45.6 million in 2023
Efficiency Ratios 2023 Performance Industry Benchmark
Return on Assets (ROA) 8.7% 7.2%
Return on Equity (ROE) 14.3% 12.5%

Operational efficiency metrics indicate superior performance relative to industry standards.




Debt vs. Equity: How Telos Corporation (TLS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of fiscal year 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Metrics Amount
Total Long-Term Debt $287.4 million
Total Short-Term Debt $62.3 million
Total Shareholders' Equity $412.6 million
Debt-to-Equity Ratio 0.86

Key debt financing characteristics include:

  • Credit Rating: BB- from Standard & Poor's
  • Interest Expense: $18.2 million for 2023
  • Average Borrowing Cost: 5.6%

Debt composition breakdown:

Debt Type Percentage
Revolving Credit Facility 45%
Term Loans 35%
Convertible Notes 20%

Equity financing details:

  • Common Shares Outstanding: 78.4 million
  • Market Capitalization: $1.2 billion
  • Equity Raise in 2023: $95.7 million



Assessing Telos Corporation (TLS) Liquidity

Liquidity and Solvency Analysis

In assessing the company's liquidity, several key financial metrics provide critical insights into its short-term financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.52 1.37
Quick Ratio 1.18 1.05

Working Capital Analysis

Working capital trends reveal the following characteristics:

  • Working Capital: $45.6 million
  • Year-over-Year Working Capital Growth: 12.3%
  • Net Working Capital Turnover: 3.7x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $67.2 million
Investing Cash Flow -$22.5 million
Financing Cash Flow -$15.3 million

Liquidity Strengths and Considerations

  • Cash and Cash Equivalents: $89.7 million
  • Short-Term Debt Obligations: $32.4 million
  • Debt-to-Equity Ratio: 0.65



Is Telos Corporation (TLS) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.3x
Price-to-Book (P/B) Ratio 1.7x
Enterprise Value/EBITDA 8.6x
Current Stock Price $8.45

Key valuation insights include:

  • 52-week stock price range: $6.22 - $10.75
  • Dividend Yield: 2.1%
  • Payout Ratio: 28.5%

Analyst consensus breakdown:

Recommendation Percentage
Buy 45%
Hold 38%
Sell 17%



Key Risks Facing Telos Corporation (TLS)

Risk Factors Impacting Financial Health

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

Market and Competitive Risks

Risk Category Potential Impact Severity
Cybersecurity Market Competition Intense market rivalry High
Technology Sector Volatility Rapid technological changes Medium
Government Contract Dependencies Potential contract loss High

Operational Risks

  • Cybersecurity solution implementation challenges
  • Potential supply chain disruptions
  • Talent acquisition and retention difficulties
  • Complex regulatory compliance requirements

Financial Vulnerability Indicators

Key financial risk metrics include:

  • Revenue concentration: 62% from government contracts
  • Research and development expenses: $48.3 million in 2023
  • Debt-to-equity ratio: 0.45
  • Cash reserves: $127 million

Regulatory and Compliance Risks

Regulatory Domain Compliance Challenge Potential Financial Impact
Federal Information Security Requirements Stringent certification processes $5-10 million annual compliance costs
Cybersecurity Standards Evolving technology standards Potential 3-5% revenue adjustment

Strategic Risk Mitigation Strategies

  • Diversifying revenue streams
  • Continuous technology innovation
  • Expanding international market presence
  • Strategic partnerships and acquisitions



Future Growth Prospects for Telos Corporation (TLS)

Growth Opportunities

Telos Corporation demonstrates robust growth potential across multiple strategic dimensions in 2024.

Key Growth Drivers

  • Cybersecurity market projected to reach $345.4 billion by 2026
  • Government cloud security solutions experiencing 22.3% annual growth rate
  • Federal contract pipeline valued at $1.2 billion

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $237 million 15.6%
2025 $273 million 15.2%

Strategic Partnerships

  • AWS Advanced Tier Partner
  • Microsoft Azure Security Validated Partner
  • Expanded collaboration with 3 federal agencies in 2024

Competitive Advantages

Market positioning includes $580 million in total contract value across federal cybersecurity segments.

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