$TechTarget (TTGT.US)$The stock price has fallen 48% since i...

Launched in 2007, it is mainly a marketing business for technology companies. 3/4 of the market is in the US, and the current price is 32.52.

In the past 5 years, revenue increased in the first 4 years, and shrank by 22.7% in 2023, with an average growth rate of 13.6%. Operating profit turned into a slight loss due to too little flexibility in costs and expenses. Net profit was affected by interest income by a small profit of 4.46 million. Interest income reached 11.655 million in 2023, and there is no interest burden. This may be related to the recent inversion of long-term and short-term interest rates. Gross margin has declined from 76.2% to 67.2% in the past 5 years. The return on net assets only reached 18.9% in 2022 and fell back to 2% in 2023.

The balance ratio has increased from 31% to 68.2% over the past 5 years. The sharp increase in goodwill in 2020 indicates that there were acquisitions. This explains the rapid increase in revenue and profit from 2020 to 2022. Usually, acquisition-driven growth has a limited period of time, which was reflected in 2023. Goodwill and other intangible assets of $283 million are 1.27 times the net assets of $223 million, long-term loans of $411 million, and cash of $330 million. The actual leverage ratio is not high. Treasury stock of 329 million.

Net cash flow over the past five years has been lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 203, and the price-earnings ratio reached 22 even when calculating net profit of 42 million in 2022, which is unattractive for the time being.