Team, Inc. (TISI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Team, Inc. (TISI) Industrial Operations Profile

Team, Inc. (TISI) delivers asset performance assurance and optimization solutions globally, operating through specialized segments like Inspection and Heat Treating, Mechanical Services, and Quest Integrity. Serving diverse industries, including refining, power, and aerospace, Team, Inc. focuses on non-destructive testing, mechanical services, and integrity management.

What Is the Investment Thesis for TISI?

Team, Inc. presents a compelling investment case based on its diverse service offerings and broad industry reach. The company's focus on asset performance assurance and optimization positions it favorably in industries with stringent safety and regulatory requirements. Key value drivers include the increasing demand for non-destructive testing and inspection services, driven by aging infrastructure and heightened safety standards. Growth catalysts include the expansion of renewable energy projects and the need for pipeline integrity management. However, investors should be aware of the company's negative profit margin of -5.5% and its relatively small market capitalization of $76.1M. Successful execution of strategic initiatives and improved profitability are crucial for realizing the company's full potential.

Based on FMP financials and quantitative analysis

TISI Key Highlights

• Market capitalization of $76.1M indicates a small-cap company with potential for growth.
• Gross margin of 23.4% reflects the company's ability to generate revenue above the cost of goods sold.
• Negative profit margin of -5.5% suggests challenges in achieving profitability and efficient cost management.
• Beta of 1.02 indicates the stock's volatility is similar to the overall market.
• No dividend yield reflects a focus on reinvesting earnings for growth rather than returning capital to shareholders.

Who Are TISI's Competitors?

TISI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TISI's Key Strengths?

• Comprehensive service portfolio.
• Global presence.
• Expertise in asset performance assurance.
• Long-standing relationships with key clients.

What Are TISI's Weaknesses?

• Negative profit margin.
• Small market capitalization.
• Dependence on cyclical industries.
• Limited brand recognition.

What Could Drive TISI Stock Higher?

• Increasing demand for non-destructive testing and inspection services due to aging infrastructure.
• Expansion of renewable energy projects requiring regular inspection and maintenance.
• Stringent regulatory requirements driving demand for pipeline integrity management.
• Potential acquisitions or partnerships to expand service offerings and geographic reach.

What Are the Key Risks for TISI?

• Financial-distress signal — its Altman Z-Score of 1.10 sits in the distress zone (elevated bankruptcy risk).
• Economic downturns affecting industrial activity and capital spending.
• Increased competition from other service providers.
• Technological obsolescence requiring continuous investment in new technologies.
• Fluctuations in commodity prices impacting demand from energy and industrial clients.
• Regulatory changes impacting asset performance requirements.

What Are the Growth Opportunities for TISI?

• Growth opportunity 1: Expansion in Renewable Energy Sector: The increasing investment in renewable energy projects, such as wind and solar farms, presents a significant growth opportunity for Team, Inc. These projects require regular inspection and maintenance to ensure optimal performance and safety. Team, Inc.'s expertise in non-destructive testing and mechanical services can be leveraged to secure contracts for inspecting wind turbine blades, solar panel structures, and related infrastructure. The global renewable energy market is projected to reach $1.1 trillion by 2027, offering a substantial addressable market for Team, Inc.
• Growth opportunity 2: Pipeline Integrity Management: The aging pipeline infrastructure in North America and other regions necessitates comprehensive integrity management programs. Team, Inc.'s Quest Integrity segment offers specialized services for pipeline inspection, engineering assessment, and repair. The demand for these services is driven by regulatory requirements and the need to prevent pipeline leaks and failures. The pipeline integrity management market is estimated to be worth $25 billion annually, providing a significant growth opportunity for Team, Inc.
• Growth opportunity 3: Focus on Robotics and Automation: Investing in robotics and automation technologies can enhance the efficiency and accuracy of Team, Inc.'s inspection and maintenance services. Robotic inspection systems can access hard-to-reach areas and perform inspections more quickly and safely than traditional methods. This can lead to cost savings for clients and improved service quality. The market for robotic inspection systems is growing rapidly, driven by advancements in sensor technology and artificial intelligence.
• Growth opportunity 4: Geographic Expansion: Expanding into new geographic markets, particularly in Asia and South America, can diversify Team, Inc.'s revenue streams and reduce its reliance on North America. These regions are experiencing rapid industrial growth and infrastructure development, creating demand for asset performance assurance services. Establishing partnerships with local companies and adapting service offerings to meet local needs are key to successful geographic expansion.
• Growth opportunity 5: Development of Advanced Inspection Technologies: Investing in the development of advanced inspection technologies, such as phased array ultrasonic testing and long-range guided wave testing, can differentiate Team, Inc. from its competitors and attract new clients. These technologies offer improved accuracy and efficiency compared to traditional inspection methods. The market for advanced inspection technologies is growing rapidly, driven by the increasing demand for high-quality asset performance data.

What Opportunities Does TISI Have?

• Expansion in renewable energy sector.
• Pipeline integrity management.
• Development of advanced inspection technologies.
• Geographic expansion into Asia and South America.

What Threats Does TISI Face?

• Economic downturns affecting industrial activity.
• Increased competition from other service providers.
• Technological obsolescence.
• Regulatory changes impacting asset performance requirements.

What Are TISI's Competitive Advantages?

• Specialized expertise in asset performance assurance.
• Comprehensive service portfolio covering inspection, repair, and maintenance.
• Long-standing relationships with key clients in various industries.
• Global presence with operations in the United States, Canada, and Europe.

What Does TISI Do?

Founded in 1973 and headquartered in Sugar Land, Texas, Team, Inc. has evolved into a global provider of asset performance assurance and optimization solutions. The company operates through three primary segments: Inspection and Heat Treating (IHT), Mechanical Services (MS), and Quest Integrity. The IHT segment offers a comprehensive suite of non-destructive evaluation and testing services, including radiographic, ultrasonic, and electromagnetic testing. This segment also provides advanced services like long-range guided ultrasonic testing and robotic inspections. The MS segment focuses on engineered composite repair, emissions control, and leak repair services, addressing critical maintenance needs for piping systems and related assets. The Quest Integrity segment delivers specialized services such as furnace tube inspection, pipeline integrity management, and condition assessment. Team, Inc. serves a wide array of industries, including refining, power, renewables, nuclear, liquefied natural gas, chemical, petrochemical, pulp and paper, automotive, mining, valves, terminals and storage, pipeline, offshore oil and gas, and aerospace and defense. The company's solutions are also utilized in infrastructure sectors like amusement parks, bridges, ports, construction, and railways. With a global presence spanning the United States, Canada, and Europe, Team, Inc. is committed to ensuring the safety and reliability of critical assets for its clients.

What Products and Services Does TISI Offer?

• Provides non-destructive evaluation and testing services.
• Offers engineered composite repair solutions.
• Delivers emissions control and compliance services.
• Performs pipeline integrity management and condition assessment.
• Provides heat treating services for various industries.
• Offers leak repair services for pipes, valves, and flanges.
• Provides onstream services including line stopping and valve insertion.

How Does TISI Make Money?

• Provides inspection and testing services on a contract basis.
• Offers repair and maintenance services for industrial assets.
• Generates revenue through project-based work and long-term service agreements.

What Industry Does TISI Operate In?

Team, Inc. operates within the specialty business services sector, which is characterized by increasing demand for asset integrity and reliability solutions. The market is driven by stringent regulatory requirements, aging infrastructure, and the need to prevent costly failures. The competitive landscape includes companies offering non-destructive testing, mechanical services, and integrity management solutions. Team, Inc. differentiates itself through its comprehensive service portfolio and global reach. The industry is expected to grow steadily, driven by investments in infrastructure maintenance and the expansion of energy and industrial facilities.

Who Are TISI's Key Customers?

• Refining industry
• Power generation industry
• Chemical and petrochemical industry
• Pipeline operators
• Aerospace and defense industry

F-Score 5/9Financial Health

Team, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.10 places it in the distress zone, a signal of elevated financial risk.

Key Financial Metrics

Return on assets is -6.4%, showing how much profit it generates from its asset base. Its free cash flow yield is -2.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.24 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -40.5%, the inverse of the P/E and a quick read on earnings relative to price.

Team, Inc. (TISI) Valuation Context

Valued at $76.1M, TISI is classified as a micro-cap stock. Relative to its peer group, TISI's quantitative score of 36/100 is below the peer average of 60/100.

FY2026 estForward Outlook

Wall Street analysts project Team, Inc. revenue of about $1.20B for fiscal 2026, with EPS near $-8.28.

TISI Financials

TISI Latest News

TISI Analyst Consensus

TISI MoonshotScore

Team, Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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