Telos (TLS) DD
Trash my DD: This is my first DD, so by all means trash it, give me pointers, degrade me, etc I’m here to learn! I’ve seen a couple people a few months back lightly cover this company but without details. So, here’s my take.
What is it? An I.T. and cyber-security company that serves govt and large enterprise clients and focuses on leveraging cloud technology.
End of 2020, going into ‘21, Telos switched their focus to product development, scaling, and deliveries. They didn’t have any strong advertising or marketing strategies ending 2020, though they plan to drastically change that this year with a planned 300% increase on revenue from their 2020 advertising/marketing investments.
Their biggest product, Xacta, is used by BIG names: CIA, DoD, National Archives, Department of Energy, Amazon, and Microsoft.
Telos has been flying under the radar for the past few years, being used only by people like the CIA, because they’ve wanted to focus on a niche customer-base and provide quality service, building up their business through hard work and a loyal, federal customer base rather than hype– another reason you won’t find out too much information on them through typical analyst ratings: they’ve had a completely different customer-niche than usual companies. As they begin to spread into commercial organizations, more data will be released for the public to analyze.
Now, as cyber-security becomes increasingly important, institutions are setting standards that security and I.T. companies have to comply with. These organizations outside of federal agencies are constantly seeking help to comply with these new sets of standards which Telos has mastered with their cybersecurity product, Xacta. Telos is the only player in the game with a product like Xacta. All eyes are turning to them for help with complying to these new standards. Roughly 50% of commercial organizations are set to adopt these standards this year, with Telos’ product Xacta. Commercial companies/organizations everywhere are starting to do their research on who can help operationalize these standards and soon beginning to find out that Telos is the top dog in the game for it.
The next venture of domination for Telos seems to be the educational sector. Unleash: Telos Ghost. The Ghost product actually aims to completely hide the school’s network and cyber infrastructure from any outside or even internal threats as well as simply unauthorized users. Another goal of Ghost will be to completely prevent cyber bullying and hide the students and their assets, digitally speaking (very interested to see how the prevention of cyber bullying will be implemented into the security framework). Not only will Telos conceal the students and the school’s digital infrastructure with Ghost, working with Telos helps with school audits, making the exhaustive process smoother and within compliance with security standards. As we mentioned before not many products, dareisay…. Any at all… offer full security to organizations within the new set of security standards. Another factor that Telos has is the wifi networks they offer to educational institutions. It offers massive collaborative capabilities to the students and teachers, helping everyone achieve their goals together on the go with peace of mind of any security breaches on mobile networks.
Looking at Telos as a stock, as of 4/19/21, institutional ownership has risen .1% to 27.6% and insider ownership has risen 16.3% to 26.6%. They’re closest competitor is CSP Inc. which ended last year on a negative 1.45 million in net revenue, whereas Telos has actually ended 2020 with a net gain of 6.84 million. They only plan to increase their net revenue this year with the marketing and advertising investments they’ve made. The net gain of 6.84 million is up from last year’s negative 2.3 million and up from prior years as a whole, showing healthy signs of growth. Their revenue growth has gone up 20 million consecutively each year the past two years. Towards the end of 2020, Telos also signed a 10 year, 10 Billion dollar plan with TSA and their pre-check system. Coming into 2021, they’ve even managed to go ahead and set up $75 million in deals with customers so far. They still have plenty of time to add a couple more deals in. Their revenue for the end of the year is projected to be between 283 million and 295 million, which is over a 50% increase in revenue compared to last fiscal year. Their earnings are projected to grow over 60% this year– that’s faster and higher than the u.s. stock market as a whole year to year. The return on equity for the next 3 years is predicted to be almost 30% (29.3%). Telos also has NO debt. The company actually just completed a “Follow-On Offering,” which is a great thing for Telos because all they were doing was simply raising capital shortly after having their IPO– a completely healthy move, in fact, a very bullish sign (remember, they have no debt, so all it did was give them more money to work with for future projects).
via r/wallstreetbets https://ift.tt/3qhG8Zq
April 22, 2021 at 09:27AM