Team Inc (TISI)

History and Background

Team, Inc. was founded in 1920 as J&H Supply Company and changed its name to Team, Inc. in 1985. It provides specialty industrial services, including inspection and heat treating, primarily in the United States.

Core Business Areas

• Inspection and Assessment Services: Provides non-destructive testing and evaluation services to assess the condition of critical assets.
• Heat Treating Services: Offers on-site and off-site heat treating services to improve the properties of metal components.
• Mechanical Services: Provides a range of mechanical services, including bolting, hot tapping, and valve repair.

Leadership and Structure

Amerino Gouveia is the CEO. The company has a functional organizational structure with various departments reporting to senior management.

Key Offerings

• Non-Destructive Testing (NDT): NDT services are critical for inspecting pipelines and pressure vessels. Team Inc. is a major provider in North America, although specific market share data is difficult to obtain. Competitors include Mistras Group, Applus+, and Bureau Veritas. Revenue attributable to NDT services is a large portion of total revenue, approximately 60%.
• Heat Treating Services: Heat treating is offered on-site, used to improve the performance and life of critical components. Market share data is not publicly available. Competitors include Bloom Engineering and Selas Heat Technology.
• Mechanical Services: Services range from bolting to specialty services, with limited detailed information about its exact market share. Competitors include Furmanite and Hydra-Tight.

Industry Overview

The specialty industrial services market is driven by the need for asset integrity and maintenance in industries such as oil and gas, power generation, and petrochemicals. The industry is competitive and fragmented.

Positioning

Team Inc. positions itself as a provider of comprehensive solutions for asset integrity, offering a broad range of inspection, heat treating, and mechanical services. Their competitive advantage lies in their integrated service offering and experience.

Total Addressable Market (TAM)

TAM for NDT and related services is estimated in the billions of dollars. Team Inc. captures a portion through its suite of offerings.

Key Competitors

• Mistras Group (MG)
• Apogee Enterprises (APOG)
• Bureau Veritas (BVI.PA)

Competitive Landscape

Team Inc. faces competition from both larger, diversified companies and smaller, specialized firms. Key competitive factors include price, service quality, and geographic coverage.

Historical Growth: Historical growth has been inconsistent and dependent on economic conditions in the oil and gas sector.

Future Projections: Future projections depend on analyst estimates, industry trends, and management guidance.

Recent Initiatives: Recent initiatives include improving operational efficiency, reducing debt, and focusing on core services.

Team, Inc. provides essential services for asset integrity, yet its financial health is burdened by high debt. While their broad service range and client relationships are strengths, dependence on cyclical industries poses a risk. To enhance long-term sustainability, Team Inc. needs to focus on debt reduction and expanding into more stable markets.

Data Sources:

• Company Filings (SEC), Industry Reports, Financial News Outlets

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Market share data is approximate and based on available information.