Analysing a company in 5 minutes - Teamviewer

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Let's try it - today I will analyse Teamviewer AG, a world leader in remote connectivity management software! The chart is here:

The longer trend (>1-year) is upward and it looks like a good opportunity to buy

The shorter trend (up to 1-year) shows a downward direction

Teamviewer is a very young company and it's trading slightly higher than its Initial Public Offering stock price (€26.25). The 52-week high is €54.98 and the 52-week low is €33.00, so with it's last traded price of €38.37 we are pretty close to the low! -Check! ✅

Next I take a look at the shareholders:

BlackRock, T.Rowe Price, Vanguard etc -> these are world class funds! -Check!✅

After two Checks I go to the balance sheet, "Aktiva" and "Passiva" are "Assets" and "Equity&Liabilties" in german

First Assets or Aktiva:

Current assets are pretty much the same last 5 years, similar to Non-current assets. The biggest part of the assets is Goodwill, but this is not a company with a lot of assets on the balance sheet! -Check!✅

A look at "Passiva" - Equity and Liabilities

The relationship between Debt and Equity is roughly 80/20, this is a quite high D/E ratio (~80%) compared to the industry average for software-application companies of 6.55%! But the 5-year development shows me that they have reduced Liabilities with 300m€ and increased the Equity rapidly the last 3 years! -Check!✅

Next, what comes out of the company in forms of earnings

The last two years with positive Net Income ("Jahresüberschuss") with roughly 100m€ every year and a EBIT Margin of ~36% (160/450).

Do the company pay dividends, I suspect not, as it is a high growth company investing all earnings back into the company - Dividends last two years=0! -Check!✅

Additional points I saw on these pages which are good to consider:

• Cash hoovering around at 80m€

• Free float over 60%

• EBIT increasing every year the last 5-years

• Interest Expense of 20m€, which are covered (coverage ratio of 8) 8 times with EBIT of 160m€

• No dilution of common equity shares

• High Revenue Growth

plus from the same page but in another place the information below:

• ROE = 42.80% (avg industry ROE = 28.09%)

• EBIT Margin = 36.01% (avg industry EBIT Margin = 23.3%)

• Amount of shares outstanding 200 Mio

• Market Cap = 7.5mrd€ (€7.5billion)

  
  

  

  
  

  So the only part to consider is the high D/E ratio that is on the borderline of acceptance, but if that is plowed back into the business to a low interest rate, and I not dilute the shareholders equity and well covered on the income side with a high coverage ratio, it is a bet to do - I am onboard!

I put myself in a waiting position and BUY the stock when (if) it dips in a market correction!