Turnium Technology is undervalued, eResearch says

eResearch analyst Chris Thompson initiated coverage of Turnium Technology Group (Turnium Technology Group Stock Quote, Chart, News, Analysts, Financials TSXV:TTGI) on July 7 with a “Speculative Buy” rating and a target price of $0.25, citing strong revenue growth, a high proportion of recurring income, and expanding margins.

Thompson valued the company using an equal-weighted average of discounted cash flow, EV/revenue, and EV/EBITDA multiples. He said this approach captures both the company’s shift toward profitability and the full-year contribution of its recent Claratti acquisition.

Based in Vancouver, Turnium offers network and IT services through a subscription-based Technology-as-a-Service platform. It operates globally via three subsidiaries: Turnium Network Solutions, Claratti, and Tenacious Networks. Its platform targets small and mid-sized businesses, integrating proprietary SD-WAN with third-party tools from vendors such as Microsoft and Fortinet. The company also provides managed cybersecurity services, including compliance support and access to a 24/7 security operations centre.

Following the Claratti acquisition, Turnium is now led by Claratti’s former CEO and has expanded its customer base and distribution network, particularly in the Asia-Pacific region. Thompson said the combined operations of Claratti, TNSI, and TNET give Turnium a broad portfolio of IT infrastructure and managed services. He said the company’s flexible pricing, white-label delivery model, and multi-tenant architecture are key factors supporting customer retention and scalability.

Turnium sells its platform through a global channel strategy that includes ISPs, managed service providers, and OEMs. Thompson said that this approach embeds Turnium’s software directly into partner workflows and positions the company to benefit from ongoing demand for cloud-based networking and cybersecurity solutions.

“The public cloud services market is projected to reach $1.6-trillion by 2028,” Thompson said. “As businesses modernize their infrastructure, TTGI is well placed to capitalize on this trend.”

Thompson said Turnium remains attractively valued, trading at 1.7 times forecast fiscal 2025 revenue, below peer averages, and estimates the stock could see a fivefold upside. He also pointed to ongoing margin improvements, cross-selling opportunities, and potential for strategic M&A activity.

He forecasts Adjusted EBITDA of $0.2-million on revenue of $10.2-million in fiscal 2025, improving to $3.1-million on revenue of $13.4-million the following year.

“TTGI is in the early stages of platform integration across its subsidiaries, with a growing base of recurring revenue, a cloud-native architecture, and exposure to several secular growth drivers including SD-WAN, hybrid cloud, and cybersecurity,” he said. “The company has shown improving cost control and posted positive Adjusted EBITDA in the second quarter of fiscal 2025.”

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