Team, Inc. (NYSE:TISI): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Team, Inc.'s (NYSE:TISI) future prospects. Team, Inc. provides asset performance assurance and optimization solutions in the United States, Canada, Europe, and internationally. The US$320m market-cap company posted a loss in its most recent financial year of US$32m and a latest trailing-twelve-month loss of US$230m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Team will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Team

Team is bordering on breakeven, according to the 4 American Commercial Services analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$12m in 2022. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 117%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Team given that this is a high-level summary, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Team is its debt-to-equity ratio of 159%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Team, so if you are interested in understanding the company at a deeper level, take a look at Team's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Valuation: What is Team worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Team is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Team’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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