SYLOGIST LTD (SYZ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SYZ - CA87132P1027 - Common Stock
5.5 CAD
+0.03 (+0.55%)
Taking everything into account, SYZ scores 4 out of 10 in our fundamental rating. SYZ was compared to 68 industry peers in the Software industry. There are concerns on the financial health of SYZ while its profitability can be described as average. 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.
- SYZ had positive earnings in 4 of the past 5 years.
- SYZ had a positive operating cash flow in each of the past 5 years.
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.
- The Return On Equity of SYZ (-9.25%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 0.21%, SYZ is doing good in the industry, outperforming 61.76% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Operating Margin value of 0.27%, SYZ is doing good in the industry, outperforming 63.24% of the companies in the same industry.
- In the last couple of years the Operating Margin of SYZ has declined.
- SYZ has a Gross Margin of 58.94%. This is in the better half of the industry: SYZ outperforms 60.29% 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.
- The number of shares outstanding for SYZ remains at a similar level compared to 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
- Based on the Altman-Z score of 1.05, we must say that SYZ is in the distress zone and has some risk of bankruptcy.
- SYZ has a Altman-Z score (1.05) which is comparable to the rest of the 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.
- 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.
- A Debt/Equity ratio of 0.59 indicates that SYZ is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.59, SYZ is in line with its industry, 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 | 1.05 |
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.
- With a Current ratio value of 0.83, SYZ is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.83, SYZ is doing worse than 67.65% of the companies in the same industry.
| 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%.
- The Revenue has decreased by -4.89% in the past year.
- Measured over the past years, SYZ shows a quite strong growth in Revenue. The Revenue has been growing by 11.77% on average per year.
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.
- 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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 the industry average as 73.53% of the companies are valued more expensively.
- SYZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SYZ is cheaper than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.62 | ||
| EV/EBITDA | 12.71 |
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
- SYZ has a yearly dividend return of 0.73%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.22, SYZ pays a better dividend. On top of this SYZ pays more dividend than 91.18% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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.