Angi (ANGI) AI Stock Analysis

• Market Cap: $702.82M
• Dividend Yield: N/A
• Average Volume (3M): 778.03K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.75
• Revenue Growth: -15.79%
• EPS Growth: N/A
• Country: US
• Employees: 2,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.23
• Shares Outstanding: 44,342,163
• 10 Day Avg. Volume: 932,477
• 30 Day Avg. Volume: 778,029
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 0.84
• Enterprise Value/Ebitda: 6.77
• 1Y Price Target: $21.93
• Price Target Upside: 34.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $18.50 ▲(13.36% Upside)

Angi's overall stock score is driven by strong earnings call insights, highlighting profitability improvements and strategic growth initiatives. Financial performance is moderate, with challenges in revenue and cash flow growth. Technical analysis and valuation provide a mixed outlook, but the company's strategic focus on enhancing customer experience and operational efficiency positions it for potential future gains.

Positive Factors

Proprietary Volume Growth

Achieving proprietary volume growth for the first time since 2021 indicates successful strategic initiatives and potential for sustained revenue growth, enhancing Angi's competitive position in the home services market.

Improved Profitability

The improvement in EBITDA and positive free cash flow reflect enhanced operational efficiency and financial health, providing Angi with more resources to invest in growth and innovation.

Technology Integration

Integrating technology platforms is likely to streamline operations and reduce costs, positioning Angi for better scalability and improved service delivery, which can enhance customer satisfaction and retention.

Negative Factors

Decline in Network Channel Traffic

A decline in network channel traffic could limit Angi's ability to attract new users and service providers, potentially hindering revenue growth and market expansion efforts.

Macroeconomic Headwinds

Macroeconomic challenges can affect consumer spending and demand for home services, posing risks to Angi's revenue and profitability in the near to medium term.

Challenges with Google SEO

Declining SEO performance may reduce Angi's online visibility and lead generation capabilities, necessitating increased marketing spend to maintain traffic levels.

Angi Business Overview & Revenue Model

Company Description

Angi Inc. connects home service professionals with consumers in the United States and internationally. Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services. The company also owns and operates Angi Leads digital marketplace service that connects consumers with service professionals for home repair, maintenance, and improvement projects; offers consumers with tools and resources to find local, pre-screened, and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone, and home services-related resources. In addition, it operates Handy, a platform for household services, primarily cleaning and handyman services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, and Instapro names. As of December 31, 2021, it had a network of approximately 206,000 transacting service professionals; and approximately 38,000 advertising service professionals. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. is a subsidiary of IAC/InterActiveCorp.

How the Company Makes Money

Angi generates revenue through multiple streams, primarily by charging service professionals for leads and advertising on its platform. The company operates a subscription model where service providers can pay for membership plans that grant them access to exclusive features, including enhanced visibility in search results and the ability to bid on jobs. Additionally, Angi earns money through transaction fees for bookings made through its platform, as well as through partnerships with various service providers and related businesses that enhance its service offerings. By continually expanding its network of professionals and improving user experience, Angi attracts more users and service providers, thus driving revenue growth.

Angi Financial Statement Overview

Summary

Angi's financial performance is mixed, with strong gross profit margins and improving operational efficiency. However, declining revenue and free cash flow growth are significant challenges. The balance sheet shows manageable leverage, but the company needs to address revenue growth and cash flow generation to enhance financial stability.

Income Statement

Angi's income statement shows a high gross profit margin of 94.76% TTM, indicating strong cost management. However, the net profit margin is relatively low at 5.50% TTM, and revenue has been declining with a negative growth rate of -3.28% TTM. The EBIT and EBITDA margins have improved over the years, suggesting better operational efficiency, but the overall revenue decline is a concern.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.50 TTM, indicating manageable leverage. The return on equity has improved to 5.73% TTM, showing better profitability from shareholders' equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth rate by -6.45% TTM, which is concerning. The operating cash flow to net income ratio is 0.50 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.60 TTM, showing some cash flow stability, but the declining trend in free cash flow growth is a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.19B	1.36B	1.89B	1.69B	1.47B
Gross Profit	1.03B	1.13B	1.30B	1.45B	1.36B	1.29B
EBITDA	127.32M	128.90M	93.49M	16.85M	4.67M	90.37M
Net Income	59.88M	36.00M	-40.94M	-127.98M	-70.49M	-4.16M
Balance Sheet
Total Assets	1.79B	1.83B	1.86B	1.91B	2.01B	2.37B
Cash, Cash Equivalents and Short-Term Investments	362.48M	416.43M	364.04M	321.15M	428.14M	862.70M
Total Debt	497.25M	509.66M	565.39M	512.19M	494.55M	712.28M
Total Liabilities	786.57M	767.93M	811.71M	856.40M	864.61M	1.06B
Stockholders Equity	1.00B	1.06B	1.04B	1.05B	1.13B	1.27B
Cash Flow
Free Cash Flow	75.09M	105.45M	57.06M	-89.28M	-64.01M	135.93M
Operating Cash Flow	124.96M	155.94M	104.84M	27.07M	6.21M	188.42M
Investing Cash Flow	-49.72M	-50.49M	-46.23M	-116.09M	-45.07M	-103.95M
Financing Cash Flow	-113.77M	-53.76M	-16.98M	-17.23M	-345.17M	337.05M

Angi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANGI, the sentiment is Negative. The current price of 16.32 is below the 20-day moving average (MA) of 17.10, below the 50-day MA of 17.33, and above the 200-day MA of 16.23, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 18.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANGI.

Angi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	74 Outperform	$810.22M	17.94	27.34%	―	92.91%	―
YELP	73 Outperform	$2.00B	14.39	19.98%	―	5.37%	13.08%
ANGI	67 Neutral	$702.82M	13.62	5.86%	―	-15.79%	―
SEAT	54 Neutral	$163.80M	-0.69	3.61%	―	-10.52%	-420.74%
NXDR	54 Neutral	$828.74M	-12.23	-14.98%	―	9.65%	56.50%
GRPN	47 Neutral	$909.58M	-86.74	-17.99%	―	-4.72%	84.11%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%