SYLOGIST LTD (SYZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SYZ - CA87132P1027 - Common Stock
5.21 CAD
-0.25 (-4.58%)
Overall SYZ gets a fundamental rating of 4 out of 10. We evaluated SYZ against 68 industry peers in the Software industry. SYZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SYZ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year SYZ has reported negative net income.
- In the past year SYZ had a positive cash flow from operations.
- Of the past 5 years SYZ 4 years were profitable.
- Each year in the past 5 years SYZ had a positive operating cash flow.
1.2 Ratios
- SYZ has a Return On Assets (-3.30%) which is in line with its industry peers.
- With a Return On Equity value of -9.25%, SYZ perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 0.21%, SYZ is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- SYZ had an Average Return On Invested Capital over the past 3 years of 4.06%. This 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
- SYZ has a Operating Margin of 0.27%. This is in the better half of the industry: SYZ outperforms 63.24% of its industry peers.
- In the last couple of years the Operating Margin of SYZ has declined.
- SYZ's Gross Margin of 58.94% is fine compared to the rest of the industry. SYZ outperforms 61.76% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SYZ is destroying value.
- SYZ has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SYZ has less shares outstanding
- The debt/assets ratio for SYZ is higher compared to a year ago.
2.2 Solvency
- SYZ has an Altman-Z score of 0.98. This is a bad value and indicates that SYZ is not financially healthy and even has some risk of bankruptcy.
- SYZ's Altman-Z score of 0.98 is in line compared to the rest of the industry. SYZ outperforms 42.65% of its industry peers.
- SYZ has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as SYZ would need 2.17 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.17, SYZ is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
- SYZ has a Debt/Equity ratio of 0.59. This is a neutral value indicating SYZ is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.59, SYZ perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
- 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 | 0.98 |
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's Current 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.
- 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 has a worse Quick ratio (0.83) than 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The earnings per share for SYZ have decreased strongly by -132.14% in the last year.
- SYZ shows a decrease in Revenue. In the last year, the revenue decreased by -4.89%.
- SYZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.77% yearly.
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
- Based on estimates for the next years, SYZ will show a very strong growth in Earnings Per Share. The EPS will grow by 129.58% on average per year.
- The Revenue is expected to grow by 13.68% on average over the next years. This is quite good.
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
- SYZ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYZ indicates a rather cheap valuation: SYZ is cheaper than 85.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as SYZ's earnings are expected to grow with 129.58% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.95%
EPS Next 3Y129.58%
5. Dividend
5.1 Amount
- SYZ has a yearly dividend return of 0.73%, which is pretty low.
- In the last 3 months the price of SYZ has falen by -22.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- 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.
- With a Dividend Yield of 0.73, SYZ pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- SYZ has decreased its dividend recently.
Dividend Growth(5Y)-35.7%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- The earnings of SYZ are negative and hence is the payout ratio. SYZ will probably not be able to sustain this dividend level.
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.