Team Internet Group PLC: A Deep Dive into Its Impressive ROE

As investors, we're always on the lookout for companies that can generate impressive returns on equity (ROE). One such company that has caught our attention is Team Internet Group PLC (LON:TIG), a UK-based technology company with a market capitalization of £222.32 million. In this article, we'll take a closer look at Team Internet Group's ROE and explore the factors contributing to its high performance.



Team Internet Group's ROE of 15.78% is significantly higher than the average ROE of 11% for companies in the broader technology sector, which includes software and IT services. This indicates that Team Internet Group is more efficient at converting shareholder investments into profits compared to its peers.



One of the key factors contributing to Team Internet Group's high ROE is its impressive revenue growth. In the last 12 months, the company's revenue increased by 19.74% compared to the previous year. This growth is driven by the company's ability to innovate and adapt to changing market conditions, as well as its focus on operational efficiency and cost management.



Another important factor is Team Internet Group's effective use of debt. The company has a debt-to-equity ratio of 1.33, which indicates that it uses debt to finance its operations. However, its interest coverage ratio of 2.78 suggests that it generates enough earnings to cover its interest expenses, further supporting its ability to manage its debt effectively.



Team Internet Group's high profit margin of 2.78% is another contributing factor to its impressive ROE. The company's ability to generate a significant amount of profit from its revenue is a testament to its strong profitability and efficient use of resources.

The company's high return on invested capital (ROIC) of 9.18% is another indicator of its effective use of capital to generate profits. This suggests that Team Internet Group is effectively utilizing its capital to drive growth and generate returns for shareholders.



Team Internet Group's dividend yield of 2.22% is another attractive feature for income-oriented investors. The company's commitment to paying dividends to shareholders demonstrates its confidence in its financial performance and ability to generate consistent returns.

In conclusion, Team Internet Group's impressive ROE can be attributed to several factors, including its impressive revenue growth, effective use of debt, high profit margins, and strong return on capital. By focusing on operational efficiency, cost management, and effective capital allocation, Team Internet Group has been able to generate impressive returns for its shareholders. As investors, we should continue to monitor the company's performance and consider adding it to our portfolios if it aligns with our investment goals and risk tolerance.