TASKUS INC-A (TASK) Stock Fundamental Analysis
NASDAQ:TASK - Nasdaq - US87652V1098 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TASK. TASK was compared to 82 industry peers in the IT Services industry. While TASK has a great health rating, its profitability is only average at the moment. TASK may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TASK a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TASK was profitable.
In the past year TASK had a positive cash flow from operations.
Of the past 5 years TASK 4 years were profitable.
Of the past 5 years TASK 4 years had a positive operating cash flow.
1.2 Ratios
TASK has a Return On Assets of 5.61%. This is in the better half of the industry: TASK outperforms 67.07% of its industry peers.
Looking at the Return On Equity, with a value of 10.63%, TASK is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
TASK's Return On Invested Capital of 7.66% is fine compared to the rest of the industry. TASK outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TASK is significantly below the industry average of 21.64%.
The 3 year average ROIC (7.11%) for TASK is below the current ROIC(7.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 10.63% | ||
| ROIC | 7.66% |
ROA(3y)4.86%
ROA(5y)2.33%
ROE(3y)9.49%
ROE(5y)4.66%
ROIC(3y)7.11%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TASK (5.29%) is better than 63.41% of its industry peers.
TASK's Profit Margin has declined in the last couple of years.
TASK's Operating Margin of 9.87% is fine compared to the rest of the industry. TASK outperforms 67.07% of its industry peers.
In the last couple of years the Operating Margin of TASK has declined.
TASK has a Gross Margin (39.38%) which is comparable to the rest of the industry.
TASK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 5.29% | ||
| GM | 39.38% |
OM growth 3YN/A
OM growth 5Y-3.11%
PM growth 3YN/A
PM growth 5Y-13.33%
GM growth 3Y-1.5%
GM growth 5Y-2.05%
2. Health
2.1 Basic Checks
TASK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TASK has been increased compared to 1 year ago.
TASK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TASK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.68 indicates that TASK is not in any danger for bankruptcy at the moment.
The Altman-Z score of TASK (3.68) is better than 60.98% of its industry peers.
The Debt to FCF ratio of TASK is 3.42, which is a good value as it means it would take TASK, 3.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TASK (3.42) is better than 62.20% of its industry peers.
TASK has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.45, TASK is in line with its industry, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.82
WACC9.36%
2.3 Liquidity
A Current Ratio of 2.87 indicates that TASK has no problem at all paying its short term obligations.
TASK's Current ratio of 2.87 is amongst the best of the industry. TASK outperforms 80.49% of its industry peers.
TASK has a Quick Ratio of 2.87. This indicates that TASK is financially healthy and has no problem in meeting its short term obligations.
TASK has a better Quick ratio (2.87) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
TASK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.20%.
TASK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.26% yearly.
Looking at the last year, TASK shows a quite strong growth in Revenue. The Revenue has grown by 14.05% in the last year.
The Revenue has been growing by 22.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.2%
EPS 3YN/A
EPS 5Y7.26%
EPS Q2Q%26.67%
Revenue 1Y (TTM)14.05%
Revenue growth 3Y9.36%
Revenue growth 5Y22.57%
Sales Q2Q%22.12%
3.2 Future
Based on estimates for the next years, TASK will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.07% on average per year.
Based on estimates for the next years, TASK will show a quite strong growth in Revenue. The Revenue will grow by 9.48% on average per year.
EPS Next Y14.02%
EPS Next 2Y12.13%
EPS Next 3Y12.07%
EPS Next 5YN/A
Revenue Next Year12.78%
Revenue Next 2Y10.36%
Revenue Next 3Y9.48%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.29 indicates a correct valuation of TASK.
Compared to the rest of the industry, the Price/Earnings ratio of TASK indicates a rather cheap valuation: TASK is cheaper than 86.59% of the companies listed in the same industry.
TASK is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
TASK is valuated reasonably with a Price/Forward Earnings ratio of 10.38.
Based on the Price/Forward Earnings ratio, TASK is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
TASK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
84.15% of the companies in the same industry are more expensive than TASK, based on the Enterprise Value to EBITDA ratio.
TASK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TASK is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.21 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TASK's earnings are expected to grow with 12.07% in the coming years.
PEG (NY)0.88
PEG (5Y)1.69
EPS Next 2Y12.13%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
No dividends for TASK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.84
-0.1 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change0%
Ins Owners11.63%
Ins Owner Change15.71%
Market Cap1.50B
Analysts73.33
Price Target18.87 (12.05%)
Short Float %4.05%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.42%
Min EPS beat(2)-12.22%
Max EPS beat(2)15.07%
EPS beat(4)2
Avg EPS beat(4)3.91%
Min EPS beat(4)-12.22%
Max EPS beat(4)15.07%
EPS beat(8)6
Avg EPS beat(8)5.23%
EPS beat(12)9
Avg EPS beat(12)7.41%
EPS beat(16)10
Avg EPS beat(16)4.63%
Revenue beat(2)2
Avg Revenue beat(2)0.25%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.47%
Revenue beat(4)4
Avg Revenue beat(4)0.81%
Min Revenue beat(4)0.02%
Max Revenue beat(4)1.97%
Revenue beat(8)6
Avg Revenue beat(8)0.44%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)12
Avg Revenue beat(16)1.46%
PT rev (1m)-1.6%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)1.75%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 10.38 | ||
| P/S | 1.43 | ||
| P/FCF | 20.21 | ||
| P/OCF | 12.06 | ||
| P/B | 2.87 | ||
| P/tB | 11.09 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)1.37
EY8.14%
EPS(NY)1.62
Fwd EY9.63%
FCF(TTM)0.83
FCFY4.95%
OCF(TTM)1.4
OCFY8.29%
SpS11.77
BVpS5.86
TBVpS1.52
PEG (NY)0.88
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 10.63% | ||
| ROCE | 12.48% | ||
| ROIC | 7.66% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 25.91% | ||
| OM | 9.87% | ||
| PM (TTM) | 5.29% | ||
| GM | 39.38% | ||
| FCFM | 7.08% |
ROA(3y)4.86%
ROA(5y)2.33%
ROE(3y)9.49%
ROE(5y)4.66%
ROIC(3y)7.11%
ROIC(5y)N/A
ROICexc(3y)8.8%
ROICexc(5y)N/A
ROICexgc(3y)24.87%
ROICexgc(5y)N/A
ROCE(3y)11.59%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-5.14%
ROICexc growth 3YN/A
ROICexc growth 5Y15.33%
OM growth 3YN/A
OM growth 5Y-3.11%
PM growth 3YN/A
PM growth 5Y-13.33%
GM growth 3Y-1.5%
GM growth 5Y-2.05%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 84.25% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.28% | ||
| Profit Quality | 133.76% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 3.68 |
F-Score7
WACC9.36%
ROIC/WACC0.82
Cap/Depr(3y)63.94%
Cap/Depr(5y)78.07%
Cap/Sales(3y)3.95%
Cap/Sales(5y)5.14%
Profit Quality(3y)239.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.2%
EPS 3YN/A
EPS 5Y7.26%
EPS Q2Q%26.67%
EPS Next Y14.02%
EPS Next 2Y12.13%
EPS Next 3Y12.07%
EPS Next 5YN/A
Revenue 1Y (TTM)14.05%
Revenue growth 3Y9.36%
Revenue growth 5Y22.57%
Sales Q2Q%22.12%
Revenue Next Year12.78%
Revenue Next 2Y10.36%
Revenue Next 3Y9.48%
Revenue Next 5YN/A
EBIT growth 1Y1.89%
EBIT growth 3YN/A
EBIT growth 5Y18.75%
EBIT Next Year36.54%
EBIT Next 3Y19.8%
EBIT Next 5YN/A
FCF growth 1Y-39.71%
FCF growth 3YN/A
FCF growth 5Y33.2%
OCF growth 1Y-19.44%
OCF growth 3YN/A
OCF growth 5Y25.96%