SYLOGIST LTD (SYZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SYZ - CA87132P1027 - Common Stock
5.51 CAD
+0.01 (+0.18%)
Overall SYZ gets a fundamental rating of 4 out of 10. We evaluated SYZ against 68 industry peers in the Software industry. There are concerns on the financial health of SYZ while its profitability can be described as average. SYZ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- SYZ had negative earnings in the past year.
- SYZ had a positive operating cash flow in the past year.
- SYZ had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years SYZ had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -3.30%, SYZ perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
- SYZ has a Return On Equity (-9.25%) which is comparable to the rest of the industry.
- The Return On Invested Capital of SYZ (0.21%) is better than 61.76% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SYZ is significantly below the industry average of 12.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.3% | ||
| ROE | -9.25% | ||
| ROIC | 0.21% |
ROA(3y)0.98%
ROA(5y)2.02%
ROE(3y)2.45%
ROE(5y)4.08%
ROIC(3y)4.06%
ROIC(5y)4.59%
1.3 Margins
- Looking at the Operating Margin, with a value of 0.27%, SYZ is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
- SYZ's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 58.94%, SYZ is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- In the last couple of years the Gross Margin of SYZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.27% | ||
| PM (TTM) | N/A | ||
| GM | 58.94% |
OM growth 3Y-37.04%
OM growth 5Y-32.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.68%
GM growth 5Y-4.95%
2. Health
2.1 Basic Checks
- SYZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SYZ remains at a similar level compared to 1 year ago.
- SYZ has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SYZ has a worse debt to assets ratio.
2.2 Solvency
- SYZ has an Altman-Z score of 1.06. This is a bad value and indicates that SYZ is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.06, SYZ is in line with its industry, outperforming 42.65% of the companies in the same industry.
- The Debt to FCF ratio of SYZ is 2.17, which is a good value as it means it would take SYZ, 2.17 years of fcf income to pay off all of its debts.
- SYZ has a better Debt to FCF ratio (2.17) than 73.53% of its industry peers.
- SYZ has a Debt/Equity ratio of 0.59. This is a neutral value indicating SYZ is somewhat dependend on debt financing.
- SYZ has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: SYZ outperforms 41.18% of its industry peers.
- Even though the debt/equity ratio score it not favorable for SYZ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.02
WACC10.31%
2.3 Liquidity
- SYZ has a Current Ratio of 0.83. This is a bad value and indicates that SYZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- SYZ has a worse Current ratio (0.83) than 67.65% of its industry peers.
- SYZ has a Quick Ratio of 0.83. This is a bad value and indicates that SYZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- SYZ's Quick ratio of 0.83 is on the low side compared to the rest of the industry. SYZ is outperformed by 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- SYZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -132.14%.
- SYZ shows a decrease in Revenue. In the last year, the revenue decreased by -4.89%.
- The Revenue has been growing by 11.77% on average over the past years. This is quite good.
EPS 1Y (TTM)-132.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-26.67%
Revenue 1Y (TTM)-4.89%
Revenue growth 3Y19.25%
Revenue growth 5Y11.77%
Sales Q2Q%-4.17%
3.2 Future
- SYZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 129.58% yearly.
- SYZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.68% yearly.
EPS Next Y-395.66%
EPS Next 2Y19.95%
EPS Next 3Y129.58%
EPS Next 5YN/A
Revenue Next Year-5.03%
Revenue Next 2Y-0.35%
Revenue Next 3Y3.81%
Revenue Next 5Y13.68%
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for SYZ. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SYZ. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYZ is valued a bit cheaper than 73.53% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SYZ is valued cheaper than 83.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
- SYZ's earnings are expected to grow with 129.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.95%
EPS Next 3Y129.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.73%, SYZ is not a good candidate for dividend investing.
- SYZ's Dividend Yield is rather good when compared to the industry average which is at 0.23. SYZ pays more dividend than 91.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SYZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
- The dividend of SYZ decreases each year by -35.70%.
- SYZ has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of SYZ decreased recently.
Dividend Growth(5Y)-35.7%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- SYZ has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-31.07%
EPS Next 2Y19.95%
EPS Next 3Y129.58%
SYLOGIST LTD / SYZ.CA FAQ
Can you provide the ChartMill fundamental rating for SYLOGIST LTD?
ChartMill assigns a fundamental rating of 4 / 10 to SYZ.CA.
What is the valuation status for SYZ stock?
ChartMill assigns a valuation rating of 3 / 10 to SYLOGIST LTD (SYZ.CA). This can be considered as Overvalued.
How profitable is SYLOGIST LTD (SYZ.CA) stock?
SYLOGIST LTD (SYZ.CA) has a profitability rating of 4 / 10.
How financially healthy is SYLOGIST LTD?
The financial health rating of SYLOGIST LTD (SYZ.CA) is 3 / 10.
What is the earnings growth outlook for SYLOGIST LTD?
The Earnings per Share (EPS) of SYLOGIST LTD (SYZ.CA) is expected to decline by -395.66% in the next year.