Taboola.com Ltd. (NASDAQ: TBLA)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001840502
Market Cap 1.29 Bn
P/B 1.42
P/E 51.12
P/S 0.69
ROIC (Qtr) 3.26
Div Yield % 0.00
Rev 1y % (Qtr) 14.72
Total Debt (Qtr) 168.64 Mn
Debt/Equity (Qtr) 0.19

About

Taboola.com Ltd., a technology company that trades on the NASDAQ stock exchange under the symbol "TBLA," operates in the digital marketing industry. Since its inception in 2007, the company has developed an artificial intelligence (AI)-based, algorithmic engine with the mission of powering recommendations for the Open Web. This engine enables users to discover content they may like, but never knew existed. As a B2B company, Taboola provides a platform for digital properties to recommend editorial content and advertisements to their users. The company's...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 210.65M provides robust 1.25x coverage of total debt 168.64M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 115.47M provide 3.93x coverage of short-term debt 29.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 210.65M provides exceptional 14.30x coverage of interest expenses 14.73M, showing strong debt service capability.
  • Strong tangible asset base of 674.03M provides 4x coverage of total debt 168.64M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 168.43M exceeds capital expenditure of 42.22M by 3.99x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 210.65M barely covers its investment activities of (38.24M), with a coverage ratio of -5.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (38.24M) provide weak support for R&D spending of 147.48M, which is -0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 115.47M provide limited coverage of acquisition spending of (719000), which is -160.61x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 210.65M shows concerning coverage of stock compensation expenses of 63.01M, with a 3.34 ratio indicating potential earnings quality issues.
  • Operating earnings of 47.51M show weak coverage of depreciation charges of 89.78M, with a 0.53 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.88 1.10
EV to Cash from Ops. EV/CFO 6.42 -3.08
EV to Debt EV to Debt 8.02 28.98
EV to EBIT EV/EBIT 28.48 -26.54
EV to EBITDA EV/EBITDA 9.86 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 8.03 -67.01
EV to Market Cap EV to Market Cap 1.05 0.90
EV to Revenue EV/Rev 0.72 61.25
Price to Book Value [P/B] P/B 1.42 1.56
Price to Earnings [P/E] P/E 51.12 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 3.23 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -12.80 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.84 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 256.06 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 53.80 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 479.75 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 285.49 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 180.00 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 56.30 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.50 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.23 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.25 1.54
Current Ratio Curr Ratio (Qtr) 1.06 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 -0.39
Interest Cover Ratio Int Coverage (Qtr) 3.23 -202.56
Times Interest Earned Times Interest Earned (Qtr) 3.23 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.30 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 2.53 -4,786.62
EBT Margin % EBT Margin % (Qtr) 1.74 -5,002.12
Gross Margin % Gross Margin % (Qtr) 30.40 58.65
Net Profit Margin % Net Margin % (Qtr) 1.30 -5,003.08