There are a number of reasons to be suspicious of TEAM as an investment.
- Although the company has been in business for quite a while and has revenue approaching $ 1 billion, they still don't have a net income. Although they have positive Free Cash Flow, their stock-based compensation is about equal to their Free Cash Flow. In other words, if they paid their employees in cash, that would eat up their free cash flow.
- For a while, they had significantly more cash than debt. Currently, including capital leases, it's close to equal.
- EBITDA. not income, EPS has not made any progress over the past few years.
- Shares outstanding have grown about 25% over the past 5 years.
- Although revenue has been growing nicely, so have expenses, which have been increasing at about the same rate as revenue. That's not what you'd expect from a software company. It shouldn't $1 more in expenses to increase revenue by $1.

When stock based compensation is this high, I always get uneasy 😬