Team, Inc.

Team, Inc. (NYSE: TISI) is a digitally enabled asset performance assurance and optimization service, provider. Inspection and Heat Treating (IHT), Mechanical Services (MS), and Quest Integrity are the company's segments.

Key Highlights

• The company reported YoY decline of 0.77% in revenues to USD 217.41 million in Q3FY21 (ended September 30, 2021) compared to USD 219.09 million in Q3FY20.
• TISI's net loss increased to USD 91.18 million during Q3FY21 vs. USD 9.07 million in Q3FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 16.97 million and total debt of USD 363.63 million.  
• TISI's Q3FY21 cash cycle of 84 days is significantly higher than the industry median of 38 days.
• Its ROE was -74.9% in Q3FY21 vs. the industry median of 2.3%.
• Negative Net Margin of 9% whereas Peer’s Median stood at 3.4%.
• On February 04, 2022, TISI announced that it received written notice from the New York Stock Exchange (NYSE) on February 2, 2022, that it is not in compliance with the continued listing standards outlined in Rule 802.01C of the NYSE Listed Company Manual, which require listed companies to maintain an average closing share price of at least $1.00 for 30 trading days.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 0.52 to USD 13.84.
• TISI's stock price decreased 79.71% and 88.84% in the past six and nine months, respectively.

Technical Price Chart (as of February 22, 2022, at 03:52 PM ET). Analysis by Kalkine

Conclusion: The company's bottom-line performance deteriorated in Q3FY21 compared to the previous comparable period. Given the lackluster fundamentals, a significant correction in the stock price in the past nine months, and lack of visibility in profitability, we recommend an "Avoid" rating on the stock at the current price of USD 0.9132, as of February 22, 2022, at 03:52 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.