Added to YB: 2023-09-20
Pitch date: 2023-09-18
TSRI [bullish]
TSR, Inc.
Author Info
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Company Info
TSR, Inc. provides staffing and workforce management services. The company offers managed services, payrolling, contingent hiring, gig workforce management, project management, business analysis, application management, technical operations, data stewardship, and HRIS consulting.
Market Cap
$29.0M
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
7.40
P/E
15.21
EV/Sales
0.21
Sector
IT Services
Category
special_situation
TSR Inc. - Betting on the Jockey
TSRI: IT staffing co at 1x NCAV ($6/share), 4.6x EV/FCF (21.7% yield). Insiders+activists (Zeff Capital, QAR) own 75%, seeking strategic sale after years trading below value. Shift to higher-margin IT segment boosting profitability; $2M FCF on $17.2M mcap. PE buyer gets $2.8M adj FCF at 2.9x EV/FCF post public co cost elimination. Typical acquisitions at 6-7x EBITDA = $11.6-13 target. Risks: customer concentration (65% top 4), offshoring, mediocre biz quality. Catalyst: strategic review underway.
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