Investment Thesis
Team Inc is technically insolvent with negative stockholders' equity of -$39.4M and persistently unprofitable operations across all levels. The company is burning cash with negative free cash flow of -$11.5M while carrying $297.9M in debt that cannot be serviced from operations, creating severe refinancing risk and potential bankruptcy risk.
Strengths
- Modest revenue growth of 5.2% YoY demonstrates some top-line demand
- Gross margin of 23.3% indicates reasonable cost management at product level
- Current ratio of 2.24x suggests adequate short-term liquidity cushion
Risks
- Negative stockholders' equity of -$39.4M indicates technical insolvency and negative book value
- Negative operating cash flow of -$9.1M and negative free cash flow of -$11.5M show company is burning cash and cannot fund operations internally
- Unsustainable debt structure with $297.9M long-term debt, negative interest coverage of -0.3x, and only $12.8M cash; immediate refinancing risk
- Deteriorating profitability with net income declining 37.6% YoY and persistent losses at operating and net income levels
- Return on assets of -2.4% demonstrates the company is destroying shareholder value
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Stockholders' equity recovery and return to positive territory
- Interest coverage ratio sustainability and debt refinancing events
- Net income and operating margin improvement toward breakeven or profitability
Financial Metrics
Revenue
215.1M
Net Income
-11.3M
EPS (Diluted)
$-3.12
Free Cash Flow
-11.5M
Total Assets
479.4M
Cash
12.8M
Profitability Ratios
Gross Margin
23.3%
Operating Margin
-1.6%
Net Margin
-5.3%
ROE
N/A
ROA
-2.4%
FCF Margin
-5.4%
Balance Sheet & Liquidity
Current Ratio
2.24x
Quick Ratio
1.89x
Debt/Equity
N/A
Debt/Assets
96.8%
Interest Coverage
-0.28x
Long-term Debt
297.9M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-14T07:41:22.184821 |
Data as of: 2026-03-31 |
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