TechTarget (NasdaqGM:TTGT) - Share price, News & Analysis

Q: What is the Fair Price of TTGT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TTGT ($65.72) is trading below our estimate of [[fair value]] ($126.16)

TTGT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

TTGT Stock Overview

Rewards

Trading at 47.9% below our estimate of its fair value

Earnings are forecast to grow 37.26% per year

Risk Analysis

Profit margins (2.3%) are lower than last year (9.8%)

Shareholders have been diluted in the past year

TechTarget Competitors

Stagwell

NasdaqGS:STGW

US$1.6b

Magnite

NasdaqGS:MGNI

US$1.2b

Integral Ad Science Holding

NasdaqGS:IAS

US$1.5b

Perion Network

NasdaqGS:PERI

US$813.8m

Price History & Performance

Summary of all time highs, changes and price drops for TechTarget
Historical stock prices
Current Share Price	US$65.72
52 Week High	US$111.44
52 Week Low	US$56.83
Beta	1.04
1 Month Change	-7.16%
3 Month Change	-20.92%
1 Year Change	-13.48%
3 Year Change	212.80%
5 Year Change	559.18%
Change since IPO	344.35%

Recent News & Updates

Jun 17

There's Been No Shortage Of Growth Recently For TechTarget's (NASDAQ:TTGT) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

	TTGT	US Media	US Market
7D	-6.9%	1.3%	-2.5%
1Y	-13.5%	-33.2%	-21.2%

Return vs Industry: TTGT exceeded the US Media industry which returned -34.3% over the past year.

Return vs Market: TTGT exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is TTGT's price volatile compared to industry and market?
TTGT volatility
TTGT Average Weekly Movement	7.3%
Media Industry Average Movement	8.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: TTGT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TTGT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	1,000	Mike Cotoia	https://www.techtarget.com

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. It also provides purchase-intent marketing and sales services for enterprise technology vendors; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. The company offers online services, including IT Deal Alert, including priority engine, qualified sales opportunities, deal data services; demand solutions, such as white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions comprise on-network, off-network, and microsites and related formats branding; custom content creation services; and BrightTALK platform that allows customers to create, host and promote webinars, virtual events, and video content.

TechTarget Fundamentals Summary

How do TechTarget's earnings and revenue compare to its market cap?
TTGT fundamental statistics
Market Cap	US$1.94b
Earnings (TTM)	US$6.30m
Revenue (TTM)	US$278.62m

308.1x

P/E Ratio

7.0x

P/S Ratio

Is TTGT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TTGT income statement (TTM)
Revenue	US$278.62m
Cost of Revenue	US$70.83m
Gross Profit	US$207.79m
Other Expenses	US$201.49m
Earnings	US$6.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	0.21
Gross Margin	74.58%
Net Profit Margin	2.26%
Debt/Equity Ratio	188.2%

How did TTGT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TTGT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TTGT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TTGT. This is calculated by dividing TTGT's market cap by their current preferred multiple.
What is TTGT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.94b

TTGT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.3x
Enterprise Value/EBITDA	31.7x
PEG Ratio	8.3x

Price to Sales Ratio vs Peers

How does TTGT's PS Ratio compare to its peers?

TTGT PS Ratio vs Peers

The above table shows the PS ratio for TTGT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.2x
STGW Stagwell	0.4x	n/a	US$1.6b
MGNI Magnite	2.3x	14.8%	US$1.2b
IAS Integral Ad Science Holding	4.4x	21.1%	US$1.5b
PERI Perion Network	1.6x	16.1%	US$813.8m
TTGT TechTarget	7x	13.1%	US$1.9b

Forward PS

Price-To-Sales vs Peers: TTGT is expensive based on its Price-To-Sales Ratio (7x) compared to the peer average (2.2x).

Price to Earnings Ratio vs Industry

How does TTGT's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Sales vs Industry: TTGT is expensive based on its Price-To-Sales Ratio (7x) compared to the US Media industry average (1.2x)

Price to Sales Ratio vs Fair Ratio

What is TTGT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TTGT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	7x
Fair PS Ratio	2.6x

Price-To-Sales vs Fair Ratio: TTGT is expensive based on its Price-To-Sales Ratio (7x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

Share Price vs Fair Value

What is the Fair Price of TTGT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TTGT ($65.72) is trading below our estimate of fair value ($126.16)

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

Price to Earnings Growth Ratio

PEG Ratio: TTGT is poor value based on its PEG Ratio (8.3x)

Discover undervalued companies

Future Growth

How is TechTarget forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

37.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTGT's forecast earnings growth (37.3% per year) is above the savings rate (1.9%).

Earnings vs Market: TTGT's earnings (37.3% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: TTGT's revenue (13.1% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: TTGT's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TTGT's Return on Equity is forecast to be low in 3 years time (14.8%).

Discover growth companies

Past Performance

How has TechTarget performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TTGT has high quality earnings.

Growing Profit Margin: TTGT's current net profit margins (2.3%) are lower than last year (9.8%).

Past Earnings Growth Analysis

Earnings Trend: TTGT's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: TTGT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TTGT had negative earnings growth (-62.2%) over the past year, making it difficult to compare to the Media industry average (18.8%).

Return on Equity

High ROE: TTGT's Return on Equity (2.6%) is considered low.

Discover strong past performing companies

Financial Health

How is TechTarget's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TTGT's short term assets ($452.0M) exceed its short term liabilities ($65.4M).

Long Term Liabilities: TTGT's short term assets ($452.0M) do not cover its long term liabilities ($492.5M).

Debt to Equity History and Analysis

Debt Level: TTGT's net debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: TTGT's debt to equity ratio has increased from 31.6% to 188.2% over the past 5 years.

Debt Coverage: TTGT's debt is well covered by operating cash flow (20.6%).

Interest Coverage: TTGT's interest payments on its debt are well covered by EBIT (51.5x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TTGT has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure

CEO

Mike Cotoia (50 yo)

6.08yrs

Tenure

US$10,534,913

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 ($USD10.53M) is above average for companies of similar size in the US market ($USD5.57M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: TTGT's management team is seasoned and experienced (6.4 years average tenure).

Board Members

Experienced Board: TTGT'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31