Teads Holding Co. (NASDAQ: TEAD)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001454938
Market Cap 57.94 Mn
P/B 0.11
P/E -0.65
P/S 0.05
ROIC (Qtr) -3.50
Div Yield % 0.00
Rev 1y % (Qtr) 42.20
Total Debt (Qtr) 639.92 Mn
Debt/Equity (Qtr) 1.23

About

Outbrain Inc., a leading technology platform recognized by its ticker symbol OB, operates in the advertising industry. The company's core business revolves around connecting businesses with engaged audiences, driving revenue through a two-sided marketplace that yields concrete business outcomes. Outbrain's mission is to foster connections between businesses and audiences, empowered by its artificial intelligence (AI) prediction engine. The company's primary offerings encompass the prediction engine, optimized for user attention and engagement,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 130.75M provide 7.43x coverage of short-term debt 17.61M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 689.28M provide exceptional 66.64x coverage of deferred revenue 10.34M, showing strong service capability backing.
  • Operating cash flow of 43.01M provides strong 4.16x coverage of deferred revenue 10.34M, indicating service delivery capability.
  • Robust tangible asset base of 689.28M provides 18.03x coverage of working capital 38.24M, indicating strong operational backing.
  • Cash reserves of 130.75M provide solid 1.25x coverage of other non-current liabilities 104.64M, indicating strong liquidity.

Bear case

  • Operating cash flow of 43.01M barely covers its investment activities of (553.80M), with a coverage ratio of -0.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (553.80M) provide weak support for R&D spending of 47.44M, which is -11.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 130.75M provide limited coverage of acquisition spending of (598.32M), which is -0.22x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 43.01M provides minimal -2.14x coverage of tax expenses of (20.09M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • The company's operating cash flow of 43.01M shows concerning coverage of stock compensation expenses of 14.35M, with a 3 ratio indicating potential earnings quality issues.

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 0.32 1.10
EV to Cash from Ops. EV/CFO 12.76 -3.08
EV to Debt EV to Debt 0.86 28.98
EV to EBIT EV/EBIT -10.83 -26.54
EV to EBITDA EV/EBITDA 43.09 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 26.00 -67.01
EV to Market Cap EV to Market Cap 9.47 0.90
EV to Revenue EV/Rev 0.46 61.25
Price to Book Value [P/B] P/B 0.11 1.56
Price to Earnings [P/E] P/E -0.65 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -0.87 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.70 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 129.14 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -768.66 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -14.51 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -658.98 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -2,218.19 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -1,425.00 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -39.04 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 92.70 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.29 1.54
Current Ratio Curr Ratio (Qtr) 1.08 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 1.23 -0.39
Interest Cover Ratio Int Coverage (Qtr) -0.87 -202.56
Times Interest Earned Times Interest Earned (Qtr) -0.87 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.10 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -4.28 -4,786.62
EBT Margin % EBT Margin % (Qtr) -9.22 -5,002.12
Gross Margin % Gross Margin % (Qtr) 30.80 58.65
Net Profit Margin % Net Margin % (Qtr) -7.50 -5,003.08