Team Internet Share Discussion Threads

[rivaldo] 12/6/2024 10:32

The new issue of Techinvest this weekend said Buy and concluded as follows:

"After a period of strong revenue growth through acquisitions primarily, the benefits of operating levearge are starting to flow through to Team Internet's bottom line. Other encouraging news was that the number of visitor sessions in the Online Marketing segment increased to 19% to 6 billion over the trailing twelve-month period, while the Online Presence segment recorded organic revenue growth of 14%.

Broker consensus forecast for fiscal 2024 points to net profit of £50.8m and earnings per share of 19.2p. These figures rise to £54.7m and 20.5p respectively for fiscal 2025. Trading on a prospective P/E of 9.4 for next year, we feel the shares remain undervalued. That situation should rectify itself as operating margins continue to rise and further consolidation of acquisitions reveals more about the intrinsic strength of the business model and product offerings. Continue to buy."

[rivaldo] 11/6/2024 12:51

Zeus in mid-May stated TIG:

"trade at only 5.3x EV/ EBITDA 2024 and 6.7x PE, with a 15.1% FCFF yield. In comparison, Online Presence peers trade at 10.3x EV/EBITDA 2024 and Online Marketing peers trade at 6.5x, 94% and 22% valuation premiums to Team Internet"

Since then the share price has risen nicely, but there's still a very large gap to TIG's Online Presence peers if not so much the Online Marketing companies.

[pireric] 11/6/2024 09:30

The best comparator for TIG is System1 Inc

GDDY is on a low teens free cash flow multiple

Eric

[rivaldo] 11/6/2024 09:26

Cheers dave, that reflects well on the sector (btw I had already posted that Zeus update just a few posts ago!).

Per Zacks, GoDaddy's consensus EPS is $4.92, so at their current $142.04 stock price they're on a P/E of 28.9. Which is somewhat better than TIG's P/E of 8.9 at 200p...



"GoDaddy and CrowdStrike Will Join the S&P 500 Later This Month"

"GoDaddy stock has risen 31% this year. The web-services provider has received activist investor intervention from hedge fund Starboard Value. GoDaddy should target at least “40% growth plus profitability” in fiscal year 2025, Starboard said in a letter to the company earlier this year."

[davebowler] 10/6/2024 07:48

Apparently according to Liberum ...GODADDY SET TO JOIN S&P 500

[davebowler] 07/6/2024 14:35

Zeus research.....More to go: Of the top five performers, we highlight Team Internet as a stock that remains attractively valued compared to several peer groups. Based on FactSet data, Team Internet has the lowest 2024 PE multiple (9.2x) amongst UK digital marketing peers (median: 14.4x), global Online Presence peers (27.0x), global Online Marketing peers (17.1x) and the 78 companies in Zeus' UK Technology universe (median: 23.0x). The company also has the lowest EV/EBIT multiple (6.6x) and second highest FCF yield (11.4%) in Zeus' UK Technology universe, after Nexteq, discussed below. Despite Team Internet's low multiples, it is forecast to grow EPS by 23% in 2024, leaving it with a highly attractive PEG ratio of 0.40. We see Team Internet's EPS growth well supported by new products, vertical integration initiatives, international expansion, acquisitions and share buybacks.

[adamb1978] 05/6/2024 15:12

They can certainly make an offer. However with the Kestrel owning 27%, their decision makes it binary on whether any offer would succeed.

So if I was advising a potential acquiror (and M&A is my job!!!) I'd be telling them to speak with Kestrel, get them on board and then announce it with Kesterl in their back pocket

[azaman] 05/6/2024 14:48

Hi Petes5.

You keep mentioning about TIG being taken over. However, if you look at current share holdings, there are not enough shares in the market for anyone to buy and make a bid.

[petes5] 05/6/2024 14:38

Sitting shouting "why won't you go up" for 2 years does at times work. Just glad they were not taken out on the cheap like a number of my other holdings..

[robsy2] 05/6/2024 08:47

That’s 200p.

[rivaldo] 04/6/2024 12:55

TIG's record and prospects speak for themselves, whether Zeus has calculated correctly or not:

2022 - 20.0c EPS (actual)
2023 - 23.2c EPS (actual)
2024 - 28.5c EPS
2025 - 31.5c EPS
2026 - 36.9c EPS

On a current year P/E of 8.7, a PEG of only around 0.4 - and importantly on a large discount to sector comparators - TIG is still extremely cheap imo even after the recent rise, and remains a tantalising prospect for an incoming bid.

[pireric] 04/6/2024 07:00

Pretty amateur financial knowledge by Zeus though, because they are using the 2024 P/E multiple and comparing it to the 2024 EPS growth, which is double-counting. And made worse because there is significant inorganic growth benefit in the 2024 number

Eric

[rivaldo] 04/6/2024 06:37

Zeus Capital feature TIG in their Monthly UK smallcap technology update this morning:

"More to go: Of the top five performers, we highlight Team Internet as a stock that remains attractively valued compared to several peer groups.

Based on FactSet data, Team Internet has the lowest 2024 PE multiple (9.2x) amongst UK digital marketing peers (median: 14.4x), global Online Presence peers (27.0x), global Online Marketing peers (17.1x) and the 78 companies in Zeus’ UK Technology universe (median: 23.0x).

The company also has the lowest EV/EBIT multiple (6.6x) and second highest FCF yield (11.4%) in Zeus’ UK Technology universe, after Nexteq, discussed below.

Despite Team Internet’s low multiples, it is forecast to grow EPS by 23% in 2024, leaving it with a highly attractive PEG ratio of 0.40. We see Team Internet’s EPS
growth well supported by new products, vertical integration initiatives, international expansion, acquisitions and share buybacks."

[boadicea] 31/5/2024 10:43

Doesn't look likely to break the 200p barrier today.
(Just tempting it to prove me wrong.)

[adamb1978] 30/5/2024 13:01

Fidelity coming in is great for two reasons:

1) adds a stable high quality insti to the base who won't churn in and out
2) mops up remaining excess lidquity after the buyback. Almost like a buyback but without the company using their own cash for it.

[azaman] 30/5/2024 11:23

This could be a win-win situation for an institutional investor; share is going up and
future dividend looks certain.

[mcdougall1] 30/5/2024 11:11

Have been top slicing a few on the way up, but the near vertical climb of the share price has been impressive. I wonder if Fidelity Intl. are still buying?

[pireric] 29/5/2024 19:58

Thanks, and corrected on organic versus inorganic. That's helpful

Small news snippet; Deferral of Google Chrome third party cookie depreciation into 2025 from late 2024 by the way was called out in the Sys1 transcript

Eric

[rivaldo] 29/5/2024 11:12

Still looking good here.

Pireric, TIG's own description from their Mello presentation seems clear:

"Creating privacy-safe and AI-generated online consumer journeys that convert general interest online media users into confident, high conviction consumers through advertorial and review websites".

Online Marketing acquires pay per click traffic and then monetises it by converting it to a more valuable PPC, again when the customer completes a sale and again when it's converted to ad views.

Also, Online Marketing organic growth in 2022 was 86%, not >100%. I'd assume that TIG's TONIC platform benefited from the recently implemented restrictions/bans on the use of third party cookies, which of course TIG are an alternative to.

[diesel] 29/5/2024 11:01

I’m thinking share buybacks, intended to enhance shareholder value, may not at these levels, seem so compelling. If they don’t initiate another programme at least it will bring down debt a lot quicker.

[pireric] 28/5/2024 17:05

Rivaldo

Not trying to be condescending at all, but could you distil down what TIG is doing in its Online Marketing division in 5 lines or less?

I read the company's descriptions and read their presentations and it's impenetrable, seemingly on purpose.

And why was organic growth >100% in 2022 in Online Marketing? Any logical explanation for what happened?

Eric

[azaman] 28/5/2024 12:08

Thank you, rik shaw.

[rik shaw] 28/5/2024 11:46

yes in ii but not in HL yet

[azaman] 28/5/2024 10:14

Has anyone received the dividend yet ?

[rivaldo] 28/5/2024 09:03

I saw the CFO presenting at Mello last week and was very impressed.

The vision and skill of management in building a complete omni-media and monetisation model in Online Marketing is obvious and likely to result in continued growth imho. TIG have successfully diversified these revenue streams, and the means of supply of traffic into their customers' "journeys", and are looking to continue to do so by acquiring new customers, growing existing ones, cross-selling and new product launches and contracting new suppliers, as well as the use of AI/machine learning.

Billy reiterated that TIG remain confident in at least meeting expectations once again. And the strong cash generation and high Online Presence recurring income will continue to enable a mix of further acquisitions, organic growth, buybacks and dividends and debt reduction.