TechTarget, Inc. (NASDAQ: TTGT)

Sector: Technology Industry: Information Technology Services CIK: 0002018064
Market Cap 364.55 Mn
P/B 0.61
P/E -0.33
P/S 0.79
ROIC (Qtr) -103.29
Div Yield % 0.00
Rev 1y % (Qtr) 94.50
Total Debt (Qtr) 136.38 Mn
Debt/Equity (Qtr) 0.23

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 46.30M provide 9.41x coverage of short-term debt 4.92M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (89.28M) exceeds capital expenditure of (11.94M) by 7.48x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 185.46M provides 9.98x coverage of working capital 18.59M, indicating strong operational backing.
  • Cash reserves of 46.30M provide solid 0.97x coverage of other non-current liabilities 47.94M, indicating strong liquidity.
  • Operating cash flow of (101.22M) provides strong 8.48x coverage of capital expenditure (11.94M), enabling organic growth.

Bear case

  • Investment activities of (27.46M) provide weak support for R&D spending of 11.35M, which is -2.42x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 46.30M provide limited coverage of acquisition spending of (73.67M), which is -0.63x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (101.22M) provides insufficient coverage of deferred revenue obligations of 66.83M, which is -1.51x, raising concerns about future service delivery capabilities.
  • Operating earnings of (1.12B) show weak coverage of depreciation charges of 117.91M, with a -9.53 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (101.22M) barely covers operating expenses of 1.18B with a -0.09 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.45 1.44
EV to Cash from Ops. EV/CFO -4.35 5.63
EV to Debt EV to Debt 3.23 8.06
EV to EBIT EV/EBIT -0.39 -4.05
EV to EBITDA EV/EBITDA -0.43 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -4.93 -1.66
EV to Market Cap EV to Market Cap 1.21 1.35
EV to Revenue EV/Rev 0.95 57.14
Price to Book Value [P/B] P/B 0.61 3.34
Price to Earnings [P/E] P/E -0.33 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Int. cover (Qtr) -45.32 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 48.97 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -83.38 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -925.66 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -488.21 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -785.46 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -576.78 97.07
EPS Growth (1y) % EPS 1y % (Qtr) -369.65 147.29
FCF Growth (1y) % FCF 1y % (Qtr) 4.96 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 88.19 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.47 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.32 0.66
Current Ratio Curr Ratio (Qtr) 1.13 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.23 0.88
Interest Cover Ratio Int Coverage (Qtr) -45.32 -319.17
Times Interest Earned Times Interest Earned (Qtr) -45.32 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -217.80 -550.76
EBIT Margin % EBIT Margin % (Qtr) -243.34 -775.74
EBT Margin % EBT Margin % (Qtr) -248.71 -827.89
Gross Margin % Gross Margin % (Qtr) 59.80 24.07
Net Profit Margin % Net Margin % (Qtr) -239.20 -830.34