Angi (ANGI) AI Stock Analysis

Compare

889 Followers

ANGI Dividends

Top Page

Angi

(NASDAQ:ANGI)

59Neutral

Angi's overall score reflects a mixed financial performance with recent improvements, weighed down by a bearish technical outlook and uncertainties from recent corporate events. The company's valuation is reasonable, but the lack of a dividend yield and short-term revenue challenges temper the overall score.

Positive Factors

Financial Performance

Revenue of $268 million exceeded expectations by $14 million, and EBITDA margins were better than anticipated.

Strategic Moves

It's likely IAC will spin out Angi to IAC shareholders, which could have a net positive impact.

User Experience

The user experience is expected to be substantially better after transitioning to the new opt-in platform, driving higher conversion and usage rates.

Negative Factors

Growth Challenges

Angi's turnaround continues to take longer than expected with its return to growth pushed to 2026.

Market Reaction

Shares closed down ~26% following the earnings release due to softer-than-expected top-line outlook and similar revenue declines expected in early 2025.

Revenue Guidance

The initial 1Q guide was softer than expected, which may lead to a 2-3% drop in consensus revenue.

Angi (ANGI) vs. S&P 500 (SPY)

Market Cap

$565.33M

Dividend YieldN/A

Average Volume (3M)1.42M

Price to Earnings (P/E)16.6

Beta (1Y)1.88

Revenue Growth-17.69%

EPS GrowthN/A

CountryUS

Employees2,800

SectorCommunication Services

Sector Strength81

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.00

Shares Outstanding47,950,314

10 Day Avg. Volume1,112,297

30 Day Avg. Volume1,415,055

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.69

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit0.85

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.34

Price Target Upside13.15% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Angi Business Overview & Revenue Model

Company DescriptionAngi 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 MoneyAngi makes money primarily through its service professional membership fees, advertising, and lead generation services. Service professionals pay for membership to gain access to Angi's vast consumer base, which can lead to increased job opportunities. Additionally, Angi generates revenue by providing service professionals with leads, which are potential customers looking for specific services. The company also earns money through advertising by offering promotional services to businesses that wish to increase their visibility on the platform. Significant partnerships with other service providers and platforms can enhance Angi's revenue streams by expanding its service offerings and reach.

Angi Key Performance Indicators (KPIs)

Any

Service Requests

Service Requests
Counts the number of service requests made on the platform, reflecting user demand and the platform's ability to attract and engage customers.

Chart InsightsAngi's service requests have seen a notable decline since 2023, with a sharp drop in 2024. Despite a strategic overhaul leading to positive cash flow, the earnings call indicates challenges in revenue growth due to market disruptions and reduced third-party service requests. While Angi is on a path to recovery with reduced CapEx, the short-term outlook remains cautious, with revenue expected to fall significantly in Q1 2025. Investors should watch for improvements in core operations and potential new growth opportunities as Angi navigates these challenges.

Data provided by:

Main Street Data

Angi Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.19B	1.36B	1.89B	1.69B	1.47B
	Gross Profit
1.13B	1.30B	1.45B	1.36B	1.29B
	EBIT
21.89M	-26.50M	-100.30M	-76.51M	-5.15M
	EBITDA
128.90M	93.49M	16.85M	4.67M	90.37M
	Net Income Common Stockholders
36.00M	-40.94M	-127.98M	-70.49M	-4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
416.43M	364.04M	321.15M	428.14M	862.70M
	Total Assets
1.83B	1.86B	1.91B	2.01B	2.37B
	Total Debt
509.66M	565.39M	512.19M	494.55M	712.28M
	Net Debt
93.23M	201.35M	191.04M	66.42M	-100.43M
	Total Liabilities
767.93M	811.71M	856.40M	864.61M	1.06B
	Stockholders Equity
1.06B	1.04B	1.05B	1.13B	1.27B
Cash Flow		Free Cash Flow
105.45M	57.06M	-89.28M	-64.01M	135.93M
	Operating Cash Flow
155.94M	104.84M	27.07M	6.21M	188.42M
	Investing Cash Flow
-50.41M	-46.23M	-116.09M	-45.07M	-103.95M
	Financing Cash Flow
-53.76M	-16.98M	-17.23M	-345.17M	337.05M

Angi Technical Analysis

Technical Analysis Sentiment

Negative

Last Price11.79

Price Trends

50DMA

14.47

Negative

100DMA

16.02

Negative

200DMA

19.98

Negative

Market Momentum

MACD

-0.77

Negative

RSI

38.63

Neutral

STOCH

31.87

Neutral

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 11.79 is below the 20-day moving average (MA) of 12.12, below the 50-day MA of 14.47, and below the 200-day MA of 19.98, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANGI.

Angi Risk Analysis

Angi disclosed 50 risk factors in its most recent earnings report. Angi reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Angi Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	81 Outperform	$965.74M	30.68	29.75%	―	73.72%	―
YELP	75 Outperform	$2.27B	18.39	17.79%	―	5.61%	37.61%
Sector *	59 Neutral	$13.76B	7.70	-1.87%	3.86%	2.21%	-37.55%
ANGI	59 Neutral	$565.33M	16.56	3.42%	―	-17.69%	―
SEAT	54 Neutral	$561.93M	39.45	5.15%	―	8.80%	-91.33%
GRPN	51 Neutral	$709.43M	35.54	-9999.00%	―	-4.34%	20.50%
KIND	46 Neutral	$575.13M	―	-19.38%	―	13.27%	34.93%

* Communication Services Sector Average

Performance Comparison

ANGI

Angi

11.79

-13.71

-53.76%

GRPN

Groupon

17.82

6.85

62.44%

YELP

Yelp

35.18

-5.30

-13.09%

EVER

EverQuote

26.71

5.35

25.05%

SEAT

Vivid Seats

2.71

-2.78

-50.64%

KIND

Nextdoor Holdings

1.50

-0.70

-31.82%

Angi Earnings Call Summary

Earnings Call Date:Feb 11, 2025

(Q4-2024)

% Change Since: -31.85%|

Next Earnings Date:May 06, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant improvements in cash flow and digital growth at Dotdash Meredith, alongside a successful turnaround at Angi and strong performance at MGM. However, there are concerns about Angi's short-term revenue outlook and elevated corporate expenses due to non-recurring costs. Despite these challenges, the overall sentiment leans towards cautious optimism given the strategic improvements and potential for growth.

Q4-2024 Updates

Positive Updates

Strong Cash Flow Improvement

IAC reported a nearly $250 million increase in cash flow year-on-year, reaching almost $300 million, indicating strong financial performance and efficient operations.

Digital Revenue Growth at Dotdash Meredith

Dotdash Meredith reported 10% digital revenue growth for the fourth quarter. The company reversed previous traffic declines, with traffic up 8% and digital advertising growing 3%.

Successful Turnaround at Angi

Angi successfully returned to a positive cash flow trajectory after reducing capital expenditures from $115 million to $50 million, setting the stage for future growth.

Positive Momentum in MGM Operations

MGM is described as running like a 'Patek Philippe watch' with superb management and high occupancy rates, highlighting its strong market position and operational efficiency.

Negative Updates

First Quarter Outlook Concerns

Angi's Q1 outlook is below previous expectations, with anticipated year-over-year revenue down in the low-20s percent, primarily due to market disruptions and regulatory changes.

Challenges in Angi Revenue Growth

Angi faced challenges with non-choice revenue and a significant step-down in third-party service request channels, impacting short-term growth.

Legacy Costs and Corporate Expenses

IAC's corporate costs in 2025 are elevated due to non-recurring expenses like Joey's separation agreement and legacy litigation costs, impacting overall profitability.

Company Guidance

During the IAC and Angi Fourth Quarter 2024 Earnings Call, several key metrics and guidance were highlighted. Angi's EBITDA plummeted from $260 million to $35 million two years prior, while its CapEx rose to $115 million, prompting a strategic overhaul. This overhaul has since reduced CapEx to $50 million, leading to a positive cash flow trajectory. Dotdash Meredith experienced a turnaround with traffic increasing by 8%, and digital revenue growth improving significantly over consecutive quarters, ending with a 10% rise in Q4. IAC's businesses generated almost $300 million in cash flow for 2024, with Dotdash Meredith outperforming competitors and Angi on the cusp of growth. Looking forward, Dotdash Meredith anticipates 10% plus digital revenue growth for 2025, driven by a strong performance marketing sector, which grew 22% in Q4. The overall strategy involves focusing on core business improvements and exploring new opportunities for capital allocation, including potential investments and returning capital to shareholders.

Angi Corporate Events

Executive/Board Changes

Angi Announces Executive Leadership Changes

Neutral

Feb 18, 2025

On February 18, 2025, Angi Inc. announced significant leadership changes impacting its executive team. Chief Technology Officer Kulesh Shanmugasundaram will resign effective March 31, 2025, with a transition agreement ensuring a smooth handover. David Fleischman will transition from Chief Product Officer to Chief Experience Officer, and Kris Boon will be appointed as the new Chief Product Officer, effective March 31, 2025. These changes are aimed at strengthening the company’s leadership as it continues to adapt to the evolving home services market.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures

Angi Inc. Revenue Falls as IAC Prepares Spin-Off

Negative

Feb 11, 2025

Angi Inc. reported a decrease in revenue by 11% year-over-year to $267.9 million for Q4 2024, with operating income dropping 72% to $2 million and Adjusted EBITDA falling 23% to $32 million. These declines were primarily due to reduced consumer marketing expenses and fewer service requests, despite a growth in international revenue and an increase in Ads and Leads operating income by 21%. Angi is set to be spun off by IAC, with the transaction expected to close in the first half of 2025, and Joey Levin has been appointed as Executive Chairman, marking a significant shift in the company’s strategic direction.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.