DB:EFT

Stock Analysis Report

Executive Summary

TechTarget, Inc. provides specialized online content for buyers of enterprise information technology (IT) products and services in the United States, the United Kingdom, and internationally.

Rewards

Trading at 39.4% below its fair value

Earnings are forecast to grow 22.89% per year

Earnings grew by 30.3% over the past year

Risk Analysis

No risks detected for EFT from our risk checks.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has TechTarget's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EFT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

EFT

0.4%

DE Media

-0.9%

DE Market


1 Year Return

82.9%

EFT

6.2%

DE Media

12.8%

DE Market

Return vs Industry: EFT exceeded the German Media industry which returned 6.2% over the past year.

Return vs Market: EFT exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

EFTIndustryMarket
7 Day2.2%0.4%-0.9%
30 Day6.1%-0.09%-0.4%
90 Day-2.2%0.9%2.3%
1 Year82.9%82.9%11.6%6.2%16.3%12.8%
3 Year195.1%195.1%-15.1%-26.2%15.8%5.7%
5 Year139.7%139.7%-18.3%-35.4%19.7%3.3%

Price Volatility Vs. Market

How volatile is TechTarget's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TechTarget undervalued compared to its fair value and its price relative to the market?

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EFT (€25.11) is trading below our estimate of fair value (€41.41)

Significantly Below Fair Value: EFT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EFT is poor value based on its PE Ratio (44.8x) compared to the Media industry average (29.1x).

PE vs Market: EFT is poor value based on its PE Ratio (44.8x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: EFT is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: EFT is overvalued based on its PB Ratio (5x) compared to the DE Media industry average (2.9x).


Next Steps

Future Growth

How is TechTarget forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFT's forecast earnings growth (22.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: EFT's earnings (22.9% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EFT's revenue (9% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: EFT's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EFT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TechTarget performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFT has high quality earnings.

Growing Profit Margin: EFT's current net profit margins (12.6%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: EFT's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: EFT's earnings growth over the past year (30.3%) exceeds its 5-year average (29.4% per year).

Earnings vs Industry: EFT earnings growth over the past year (30.3%) exceeded the Media industry -8.9%.


Return on Equity

High ROE: EFT's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TechTarget's financial position?


Financial Position Analysis

Short Term Liabilities: EFT's short term assets ($87.4M) exceed its short term liabilities ($16.4M).

Long Term Liabilities: EFT's short term assets ($87.4M) exceed its long term liabilities ($52.3M).


Debt to Equity History and Analysis

Debt Level: EFT's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EFT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EFT's debt is well covered by operating cash flow (153.9%).

Interest Coverage: EFT's interest payments on its debt are well covered by EBIT (32.9x coverage).


Balance Sheet

Inventory Level: EFT has a low level of unsold assets or inventory.

Debt Coverage by Assets: EFT's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is TechTarget's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage5.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EFT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EFT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EFT's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Mike Cotoia (47yo)

3.8yrs

Tenure

US$1,085,066

Compensation

Mr. Michael Cotoia, also known as Mike, has been the Chief Executive Officer of TechTarget, Inc. since May 2016 and served as its Chief Operating Officer since January 10, 2012 until May 2016. Mr. Cotoia s ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.09M) is about average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Strakosch
Co-Founder & Executive Chairman13.1yrsUS$1.09m2.16% $15.2m
Michael Cotoia
CEO & Director3.8yrsUS$1.09mno data
Don Hawk
Co-Founder & Executive Director of Product Innovation0yrsUS$2.39m0.49% $3.4m
Daniel Noreck
CFO & Treasurer3.2yrsUS$401.44k0.098% $690.3k
Sean Tierney
CTO and Senior VP of Development & Technology4.1yrsno datano data
Charles Rennick
VP, General Counsel & Corporate Secretary0yrsno datano data
Gabrielle DeRussy
Vice President of Sales Operations11.8yrsno datano data
John Steinert
Chief Marketing Officer3.8yrsno datano data
Arden Port
Senior Vice President of Human Resources0yrsno datano data
Mark Schlack
Senior Vice President of Editorial0yrsno datano data

3.9yrs

Average Tenure

47yo

Average Age

Experienced Management: EFT's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Strakosch
Co-Founder & Executive Chairman13.1yrsUS$1.09m2.16% $15.2m
Michael Cotoia
CEO & Director3.8yrsUS$1.09mno data
Robert Burke
Independent Director7.3yrsUS$108.70k0.41% $2.9m
Roger Marino
Independent Director20.1yrsUS$100.70k6.3% $44.2m
Leonard Forman
Independent Director13.2yrsUS$123.22k0.41% $2.9m
Bruce Levenson
Lead Independent Director4.1yrsUS$118.22k3.59% $25.2m
Christina Houten
Director0.5yrsno datano data

7.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EFT's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EFT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TechTarget, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TechTarget, Inc.
  • Ticker: EFT
  • Exchange: DB
  • Founded: 1999
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$763.225m
  • Listing Market Cap: US$702.625m
  • Shares outstanding: 28.14m
  • Website: https://www.techtarget.com

Number of Employees


Location

  • TechTarget, Inc.
  • 275 Grove Street
  • Newton
  • Massachusetts
  • 2466
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTGTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2007
EFTDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2007

Biography

TechTarget, Inc. provides specialized online content for buyers of enterprise information technology (IT) products and services in the United States, the United Kingdom, and internationally. It also provides purchase-intent marketing and sales services for enterprise technology vendors; and customized marketing programs that integrate demand generation and brand advertising techniques. The company offers online services, including IT Deal Alert, core online, demand solutions, brand solutions, and custom content creation. It also operates an integrated content platform that consists of a network of approximately 140 Websites that focus on a specific IT sector, such as storage, security, networking, or business applications. In addition, the company enables registered members to conduct their pre-purchase research by accessing vendor supplied content through a network of Websites. TechTarget, Inc. was founded in 1999 and is headquartered in Newton, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:48
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.