One-glance verdict
Undervalued
$5.56 our estimate vs market $3.70
Wall Street consensus: $7.50 (35.0% higher than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
TechTarget, Inc.
TTGT · NMS · Technology · Information Technology Services
Current price
$3.70
52-week range
$3.37 - $6.70
Market cap
$267.63M
Balance sheet
Distressed
-3.47x Concerning
Net debt $85.84M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -30.4% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 3.5% to -11.6% over 3 years.
What this company does
TechTarget, Inc.
TechTarget helps technology companies find customers by providing them with data on who is actively looking to buy their products. Their main money comes from these tech companies paying for advertising and marketing services, which matters because it shows they are a key partner in helping businesses sell their technology.
How the company got here
TechTarget was founded in 1999 by Greg Strakosch and Don Hawk, initially as a spin-off from another company. [1] It became a publicly traded company in 2007. [1] Over the years, TechTarget grew by acquiring other businesses, such as KnowledgeStorm and BrightTALK, to expand its offerings. [1] In 2024, it combined with the digital businesses of Informa's Informa Tech division, and now operates under the name Informa TechTarget. [2, 9]
What it actually does
TechTarget, operating as Informa TechTarget, is a company that helps businesses, particularly those in the technology sector, to sell their products and services. [4, 11] It achieves this by providing valuable data and insights that allow technology companies to identify and connect with potential customers who are actively researching and looking to purchase technology solutions. [5, 11] Essentially, it acts as a bridge, using data to connect technology sellers with interested buyers.
Intelligence and Advisory Solutions
This segment of TechTarget's business focuses on providing in-depth market knowledge and expert guidance to technology companies. [3] They offer research and intelligence services, often under the Omdia brand, which are built on analyzing data to understand market trends and provide actionable insights. [3] Additionally, they offer advisory services where their specialists help clients navigate the complex technology landscape and make informed strategic decisions. [3] This helps technology vendors better understand their market and refine their sales and marketing strategies.
Brand and Content Solutions
This area involves helping technology companies create and distribute compelling content to engage their target audiences. [3] TechTarget provides services like editorial content creation, data-driven brand products, and comprehensive content marketing strategies. [3] They also utilize an 'Activity Intelligence' platform to help segment and target audiences based on their online behavior, making marketing efforts more relevant. [3] The goal here is to assist companies in sharing their expertise and reaching the right potential customers through various forms of engaging content.
BrightTALK
BrightTALK is a platform that TechTarget acquired, which empowers clients to create and host their own online events, such as webinars and virtual conferences. [3] This service allows technology companies to directly engage with potential buyers by sharing valuable information and insights through interactive digital formats. [3] It serves as a tool for companies to showcase their knowledge, build relationships, and generate interest from a wider audience.
Industry Dive
The Industry Dive portfolio is a collection of brands that deliver specialized business journalism across a range of specific industries. [3] This means they produce and distribute news and in-depth articles tailored to particular sectors. [3] For technology companies, this offers a channel to connect with professionals in those specific industries, helping them to establish credibility and reach potential clients with relevant information.
What management is betting on now
TechTarget's leadership is concentrating on using their combined data and product offerings to become an indispensable partner for the technology industry. [8] A significant part of their strategy involves integrating Artificial Intelligence (AI) to enhance their data's value, personalize user experiences, and boost the effectiveness of their clients' marketing and sales efforts. [8] They are also focused on refining their product lines, adjusting their market approach for certain services, and strengthening their overall brand to drive future growth. [8] The company aims to increase its market share by providing integrated solutions and deepening relationships with existing customers. [8]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-37.00K
FY2025 Q1
$12.21M
FY2025 Q2
$1.42M
FY2025 Q3
$-9.25M
FY2025 Q4
$11.58M
FY2026 Q1
$-110.00K
FY2026 Q2
$1.34M
Revenue
$116.15M
Net income
$-21.73M
Diluted EPS
-0.30
Operating cash flow
$3.36M
Free cash flow
$1.34M
Fetching…
Sources
Revenue
$106.05M
Net income
$-70.78M
Diluted EPS
-0.98
Operating cash flow
$-57.00K
Free cash flow
$-110.00K
Fetching…
Sources
Revenue
$140.68M
Net income
$-9.48M
Diluted EPS
-0.09
Operating cash flow
$11.75M
Free cash flow
$11.58M
Fetching…
Sources
Revenue
$122.29M
Net income
$-76.78M
Diluted EPS
-1.07
Operating cash flow
$-9.12M
Free cash flow
$-9.25M
Fetching…
Sources
Revenue
$119.94M
Net income
$-398.66M
Diluted EPS
-5.58
Operating cash flow
$1.47M
Free cash flow
$1.42M
Fetching…
Sources
Revenue
$103.89M
Net income
$-523.39M
Diluted EPS
-7.32
Operating cash flow
$12.23M
Free cash flow
$12.21M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
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Operating cash flow
$64.90M
Free cash flow
—
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Sources
Revenue
$0.00
Net income
$0.00
Diluted EPS
0.00
Operating cash flow
$0.00
Free cash flow
$-37.00K
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Sources
Is it cheap or expensive?
Fair value $5.56 vs current price $3.70
Wall Street consensus is the average analyst price target: $7.50 (35.0% higher than our fair-value estimate).
Our most-likely fair value is $5.56 a share — about 50.2% above today's price of $3.70, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $85.8M. Interest coverage -3.5x.
Net debt
$85.84M
Interest coverage
-3.47x
TechTarget, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TTGT
BASELINE
TechTarget, Inc.
Total debt $131.66M Interest coverage -3.47x This is the baseline the peer rows are being compared against.
Total debt $63.99M Interest coverage 0.73x This peer still has a real interest-payment cushion, while TTGT does not.
Total debt $40.74M Interest coverage 5.65x This peer still has a real interest-payment cushion, while TTGT does not.
Total debt $77.66M Interest coverage 8.06x This peer still has a real interest-payment cushion, while TTGT does not.
Total debt $1.52B Interest coverage 5.30x This peer still has a real interest-payment cushion, while TTGT does not.
Total debt $894.54M Interest coverage 7.07x This peer still has a real interest-payment cushion, while TTGT does not.
What you should know
The case for and against TTGT
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -30.4% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 3.5% to -11.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
4.07x
P/B
0.53x
P/S
0.55x
EV/EBITDA
4.66x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
59.2%
Operating margin
-11.6%
Net margin
-36.8%
ROE
-30.4%
ROA
-1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.15x
Quick ratio
0.94x
Total debt
$131.66M
Total cash
$45.82M
Growth
How the business has been compounding
Revenue TTM
$485.16M
Revenue 5Y CAGR
35.2%
EPS TTM
-2.46
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$5.93M
Free CF TTM
$15.95M
FCF margin
3.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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