ServiceTitan, Inc. Fundamental Analysis
ServiceTitan, Inc. (TTAN) shows moderate financial fundamentals with a PE ratio of -43.72, profit margin of -16.63%, and ROE of -10.70%. The company generates $1.0B in annual revenue with strong year-over-year growth of 25.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TTAN's fundamental strength across five key dimensions:
Efficiency Score
WeakTTAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTTAN trades at attractive valuation levels.
Growth Score
ModerateTTAN shows steady but slowing expansion.
Financial Health Score
ExcellentTTAN maintains a strong and stable balance sheet.
Profitability Score
WeakTTAN struggles to sustain strong margins.
Key Financial Metrics
Is TTAN Expensive or Cheap?
P/E Ratio
TTAN trades at -43.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TTAN's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values ServiceTitan, Inc. at 4.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -111.72 times EBITDA. This is generally considered low.
How Well Does TTAN Make Money?
Net Profit Margin
For every $100 in sales, ServiceTitan, Inc. keeps $-16.63 as profit after all expenses.
Operating Margin
Core operations generate -16.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-10.70 in profit for every $100 of shareholder equity.
ROA
ServiceTitan, Inc. generates $-9.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ServiceTitan, Inc. produces operating cash flow of $111.47M, showing steady but balanced cash generation.
Free Cash Flow
ServiceTitan, Inc. produces free cash flow of $86.11M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
TTAN converts 1.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-43.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.11
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
-0.10
vs 25 benchmark
How TTAN Stacks Against Its Sector Peers
| Metric | TTAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -43.72 | 37.32 | Better (Cheaper) |
| ROE | -10.70% | 993.00% | Weak |
| Net Margin | -16.63% | 5975589423.00% | Weak |
| Debt/Equity | 0.03 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 3.49 | 116.24 | Strong Liquidity |
| ROA | -9.16% | -297552.00% (disorted) | Weak |
TTAN outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ServiceTitan, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
222.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-73.34%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
159.96%
Industry Style: Growth, Innovation, High Beta
High Growth