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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, TASK could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TASK had positive earnings in the past year.
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
With a decent Return On Assets value of 5.61%, TASK is doing good in the industry, outperforming 67.07% of the companies in the same industry.
TASK has a Return On Equity of 10.63%. This is in the better half of the industry: TASK outperforms 63.41% of its industry peers.
TASK has a Return On Invested Capital of 7.66%. This is in the better half of the industry: TASK outperforms 65.85% of its industry peers.
TASK had an Average Return On Invested Capital over the past 3 years of 7.11%. This is significantly below the industry average of 21.64%.
The last Return On Invested Capital (7.66%) for TASK is above the 3 year average (7.11%), which is a sign of increasing profitability.
| 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
TASK's Profit Margin of 5.29% is fine compared to the rest of the industry. TASK outperforms 63.41% of its industry peers.
In the last couple of years the Profit Margin of TASK has declined.
With a decent Operating Margin value of 9.87%, TASK is doing good in the industry, outperforming 67.07% of the companies in the same industry.
In the last couple of years the Operating Margin of TASK has declined.
The Gross Margin of TASK (39.38%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TASK is destroying value.
TASK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TASK has been reduced compared to 5 years ago.
The debt/assets ratio for TASK has been reduced compared to a year ago.
2.2 Solvency
TASK has an Altman-Z score of 3.68. This indicates that TASK is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.68, TASK is doing good in the industry, outperforming 60.98% of the companies in the same industry.
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.
TASK's Debt to FCF ratio of 3.42 is fine compared to the rest of the industry. TASK outperforms 62.20% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that TASK is not too dependend on debt financing.
The Debt to Equity ratio of TASK (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.81
WACC9.43%
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.
A Quick Ratio of 2.87 indicates that TASK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.87, TASK belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.20% over the past year.
The Earnings Per Share has been growing slightly by 7.26% on average over the past years.
Looking at the last year, TASK shows a quite strong growth in Revenue. The Revenue has grown by 14.05% in the last year.
TASK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.57% yearly.
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
TASK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.07% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.29, the valuation of TASK can be described as correct.
TASK's Price/Earnings ratio is rather cheap when compared to the industry. TASK is cheaper than 86.59% of the companies in the same industry.
TASK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 10.38, which indicates a very decent valuation of TASK.
89.02% of the companies in the same industry are more expensive than TASK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TASK to the average of the S&P500 Index (21.76), we can say TASK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TASK is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TASK is valued a bit 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
TASK's 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
TASK does not give a dividend.
| 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
WACC9.43%
ROIC/WACC0.81
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%