Team, Inc. (TISI) is coming off of a record setting quarter and year. Growth rates just keep getting better and thanks to the recent market downturn, shares are priced at a discount.
TISI is currently a Zacks #1 Rank (Strong Buy) and has some serious potential.
Team, Inc. provides industrial services for high-temperature and high-pressure piping systems and vessels. Most customers are in the refining, pipeline and other heavy industrial industries.
Beat the Street
On Jul 26 Team, Inc. reported full-year results for fiscal 2011 and offered guidance for the coming year. Revenues were up 12% for the year, to $508 million.
Earnings for 2011 came in at $25.2 million, up 62% over the previous year. For the final period earnings broke down to $0.53 per share, which was a nickel better than expected. Team, Inc. has topped forecasts in 3 of the past 4 quarters.
The results hit record highs for both the top and bottom lines for the year and quarter.
Team, Inc. said it expected to bring in $550 to $575 million in fiscal 2012. They said EPS should be between $1.45 and $1.60. Analysts began raising estimates on the news.
Full-year estimates for 2012 are averaging $1.54, up 7 cents since the announcement. Forecasts for fiscal 2013 are up 11 cents, to $1.82. If these levels are met the annual growth rates will be 25% and 18%, respectively.
Shares are on Sale
TISI has been beaten up along with the rest of the market and that as left its valuations quite attractive. The forward P/E is just 14 times, which puts the PEG ratio at 0.4. Shares are going for less than 1 times sales and twice the book value.
The past few weeks have been a prime example of how easy it is to get lost in the day to day movements of a stock. But take a look at this chart below. Each colored line is a full-year consensus estimate. See the huge gaps? That is significant year over year growth.
I also like how they continue to increase throughout the year. This a great long-term earnings trend.