TeraGo Inc. (TGO) AI Stock Analysis

• Market Cap: C$23.84M
• Dividend Yield: N/A
• Average Volume (3M): 6.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 0.38%
• EPS Growth: 7.22%
• Country: CA
• Employees: 98
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): -0.08
• Shares Outstanding: 20,034,328
• 10 Day Avg. Volume: 3,720
• 30 Day Avg. Volume: 6,059
• PEG Ratio: 0.14
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$1.00 ▼(-15.97%Downside)

The overall score is primarily impacted by financial performance challenges, including declining revenue and high leverage. However, positive corporate events and stable technical indicators provide some support.

TeraGo Inc. Business Overview & Revenue Model

Company Description

TeraGo Inc., together with its subsidiaries, provides connectivity, colocation, and cloud services for businesses primarily in Canada. The company owns and operates a carrier-grade multi-protocol label switching enabled wireline and fixed wireless, and Internet protocol communications network that provide Internet access, private interconnection, and data connectivity services. It also offers data connectivity services that allow businesses to connect their various sites within a city or across the company's geographic footprint through a private virtual local area network; and a range of diverse Ethernet-based services over a wireless connection to customer locations. In addition, the company provides data center colocation services that protect and connect its customers' valuable information assets; disaster recovery services; and managed hosting solutions. It provides data center services for national government agencies, financial services companies, IT service providers, content and network service providers, and small and medium businesses. Further, the company offers cloud services, including infrastructure as a service for compute, storage, disaster recovery cloud solutions, and other services to customers in various industry verticals, federal, provincial, and municipal governments and agencies, as well as non-profit organizations. It provides its services through direct and indirect sales channels. TeraGo Inc. was incorporated in 2000 and is headquartered in Thornhill, Canada.

How the Company Makes Money

TeraGo Inc. generates revenue through a combination of subscription-based and usage-based models. The company's primary revenue streams include monthly recurring charges for cloud and data center services, such as virtual servers, storage, and managed IT solutions. Additionally, TeraGo earns revenue from providing internet connectivity services, where clients pay for bandwidth usage and network infrastructure services. Revenue is also driven by long-term contracts with enterprise customers who require reliable and scalable IT infrastructure solutions. Strategic partnerships with technology providers enhance TeraGo's service offerings, enabling the company to deliver comprehensive solutions that contribute to its earnings.

TeraGo Inc. Financial Statement Overview

Summary

TeraGo Inc. shows a declining revenue trend and negative net income, indicating a lack of profitability. High leverage and weakened balance sheet stability further challenge its financial health. Cash flow generation remains inconsistent, which poses risks to sustainable growth.

Income Statement

The income statement shows a declining revenue trend, with total revenue decreasing from $48.4M in 2019 to $26.2M in 2024. Gross profit margin has also decreased from 80.1% to 73.3% over the same period. The net income remains negative, indicating a lack of profitability. Additionally, EBIT and EBITDA margins are weak, signaling operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio, which increased from 1.19 in 2019 to 9.01 in 2024, indicating high leverage. Stockholders' equity has significantly declined, reducing financial stability. The equity ratio decreased from 43.5% to 9.1%, suggesting increased financial risk.

Cash Flow

Cash flow statements indicate fluctuating free cash flow, with a slight positive growth in recent years. However, free cash flow remains low relative to net income, and the operating cash flow to net income ratio is unstable. The company faces challenges in generating sustainable cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.16M	26.05M	27.62M	43.30M	45.45M
	Gross Profit
19.18M	19.10M	20.18M	32.16M	35.63M
	EBIT
-7.15M	-9.30M	-8.96M	-5.15M	-3.27M
	EBITDA
2.79M	876.00K	603.00K	3.28M	11.33M
	Net Income Common Stockholders
-13.27M	-13.19M	-14.05M	-19.07M	-13.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.42M	4.64M	7.38M	5.48M	5.86M
	Total Assets
53.99M	53.50M	55.38M	93.23M	103.17M
	Total Debt
44.33M	31.93M	20.50M	35.91M	56.16M
	Net Debt
40.15M	27.55M	14.28M	30.43M	50.30M
	Total Liabilities
49.07M	36.16M	25.78M	52.97M	62.30M
	Stockholders Equity
4.92M	17.33M	29.60M	40.26M	40.87M
Cash Flow		Free Cash Flow
1.48M	-5.45M	-4.96M	1.94M	5.72M
	Operating Cash Flow
5.01M	501.00K	1.25M	9.32M	13.33M
	Investing Cash Flow
-3.52M	-5.02M	18.82M	-7.75M	-7.58M
	Financing Cash Flow
-1.90M	2.69M	-19.34M	-1.95M	-8.58M

TeraGo Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TGO, the sentiment is Neutral. The current price of 1.19 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.16, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TGO.

TeraGo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
TGO	50 Neutral	C$23.84M	―	-170.20%	―	0.38%	7.22%
BCE		$21.03B	83.03	2.83%	12.17%	―	―
RCI		$15.22B	11.67	16.65%	5.21%	―	―
TU		$24.59B	28.38	7.51%	7.42%	―	―
CGO	74 Outperform	C$621.96M	7.12	10.38%	5.72%	0.06%	115.11%
CGEAF		$2.11B	8.85	10.84%	5.33%	―	―

TeraGo Inc. Corporate Events

TERAGO Inc. Re-elects Board Members at 2025 Shareholder Meeting

TERAGO Inc. announced the re-election of all six nominees to its board of directors during the 2025 annual meeting of shareholders. This re-election ensures continuity in leadership as the company continues to leverage its extensive mmWave spectrum holdings to provide innovative wireless solutions, reinforcing its position in the Canadian market.

TERAGO Partners with Ericsson to Advance Private 5G Solutions in Canada

TERAGO Inc. has announced a strategic partnership with Ericsson to deliver advanced private 5G solutions across Canada. This collaboration aims to enhance operational efficiency and innovation for businesses by providing high-speed, low-latency connectivity, particularly benefiting sectors such as manufacturing, transportation, and logistics. As a member of Ericsson’s 5-star partner program, TERAGO is set to become a preferred provider of secure wireless network infrastructure, positioning itself to capitalize on the growing demand for seamless and secure connectivity in the digital age.

TeraGo Inc. Reports Q1 2025 Financial Results with Focus on Profitability and Efficiency

TeraGo Inc. reported its financial results for the first quarter of 2025, highlighting a disciplined focus on profitability and efficiency. Despite a slight decrease in total revenue due to increased churn from discontinuing unprofitable accounts, the company saw a 10.9% increase in Adjusted EBITDA, driven by higher gross margins and lower operating expenses. The company also noted a significant increase in backlog MRR and ARPA, reflecting its strategy to attract larger, multi-location customers. The recent consultation by Innovation, Science and Economic Development Canada (ISED) regarding mmWave spectrum is seen as a positive development, providing regulatory clarity and supporting TeraGo’s strategy in the evolving connectivity landscape.

TERAGO to Discuss Q1 2025 Financial Results in Upcoming Conference Call

TERAGO Inc. announced it will host a conference call on May 14, 2025, to discuss its first-quarter financial results for 2025, which will be released the day before. This event provides stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

TERAGO Inc. Secures $2M Through Private Placement of Warrants

TERAGO Inc. has successfully closed a private placement of 800,000 common share purchase warrants as part of a second amendment to its credit and guaranty agreement with Crowdout Capital LLC and Cymbria Corporation. The proceeds from this transaction, amounting to USD$2,000,000, will be used for capital expenditures and general corporate purposes. This move, involving a related party transaction, underscores TERAGO’s strategic financial maneuvers to bolster its operational capabilities and maintain its competitive edge in the managed network services industry.

TERAGO Expands Credit Facility and Strengthens Market Position

TERAGO Inc. has amended its Credit and Guaranty Agreement with CrowdOut Capital and Cymbria Corporation, increasing its secured debt facility from $19 million to $21 million, funded by Cymbria. This amendment, alongside the issuance of 800,000 common share purchase warrants to Cymbria, reflects confidence in TERAGO’s strategic position in the 5G and Fixed Wireless Access markets, potentially enhancing its market opportunities and innovation capabilities.

TERAGO Inc. Reports Strong 2024 Financial Results Amid Strategic Growth

TERAGO Inc. reported strong financial results for the fourth quarter and full year 2024, highlighting a successful smart growth strategy and operational improvements. The company achieved a 16.9% increase in Adjusted EBITDA and a 5.2% growth in ARPA for the year, alongside a significant rise in cash flows from operations. Despite a net loss for the year, TERAGO improved profitability through lower operational expenses and better margins on new customer deals. The company anticipates continued momentum in MRR bookings, contributing to long-term value creation for stakeholders.