Team, Inc. is a provider of specialty industrial services, including inspection and assessment, required in maintaining and installing high-temperature and high-pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. The company was founded in 1973 and is based in Sugar Land, Texas.
TISI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Team Inc. To summarize, we found that Team Inc ranked in the 56th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for TISI, they are:
32% of the company's capital comes from equity, which is greater than merely 14.42% of stocks in our cash flow based forecasting set.
Team Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.55. This coverage rate is greater than that of only 9.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 92.77% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CODI, VMI, LII, WCC, and IAA can be thought of as valuation peers to TISI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Team, Inc. (TISI) Q2 2020 Results Earnings Conference Call August 5, 2020, 10:00 AM ET Company Participants Kevin Smith - Senior Director, Investor Relations Amerino Gatti - Chairman and CEO Susan Ball - Chief Financial Officer Conference Call Participants Adam Thalhimer - Thompson Davis Stefanos Crist - CJS Securities Sean...
Thank you for standing by, and welcome to the Second Quarter 2020 Team, Inc. Earnings Conference Call. With me on today's call are Amerino Gatti, our Chairman and Chief Executive Officer; and our Chief Financial Officer, Susan Ball.
Record Quarterly Gross Margin of 30.3% Since 2015 Reduced Quarterly SG&A to Lowest Level Since 2015Second Quarter 2020 * Operating cash flow of $26.3 million, resulted in free cash flow generation of $22.1 million * Reduced debt by over $26 million, achieved the lowest quarter-end debt level over the past four years * Gross margin of 30.3%, surpassed the same quarter last year and represents the strongest quarter since 2015 * Lowest quarterly SG&A since 2015 (pre-acquisitions); $22.7 million reduction, or 27.8% year-over-year to $58.9 million * Realized cost savings of $35 million, exceeded prior estimate of $20 to $25 millionSUGAR LAND, Texas, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI), a global leading provider of integrated, digitally-enabled asset performance as...