SYLOGIST LTD (SYZ.CA) Stock Fundamental Analysis
TSX:SYZ - Toronto Stock Exchange - CA87132P1027 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SYZ. SYZ was compared to 60 industry peers in the Software industry. The financial health of SYZ is average, but there are quite some concerns on its profitability. SYZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SYZ had negative earnings in the past year.
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
SYZ's Return On Assets of -0.74% is in line compared to the rest of the industry. SYZ outperforms 58.33% of its industry peers.
SYZ's Return On Equity of -1.93% is in line compared to the rest of the industry. SYZ outperforms 56.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.65%, SYZ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -1.93% | ||
| ROIC | 3.65% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SYZ has a Operating Margin of 4.97%. This is in the better half of the industry: SYZ outperforms 66.67% of its industry peers.
SYZ's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.76%, SYZ is in line with its industry, outperforming 60.00% of the companies in the same industry.
SYZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.97% | ||
| PM (TTM) | N/A | ||
| GM | 58.76% |
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.
There is no outstanding debt for SYZ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.92 indicates that SYZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.92, SYZ perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Debt to FCF ratio of SYZ is 1.61, which is an excellent value as it means it would take SYZ, only 1.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.61, SYZ is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that SYZ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, SYZ perfoms like the industry average, outperforming 43.33% 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 | 0.51 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.38
WACC9.72%
2.3 Liquidity
SYZ has a Current Ratio of 0.81. 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 (0.81) than 68.33% of its industry peers.
SYZ has a Quick Ratio of 0.81. 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 0.81, SYZ is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
SYZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.80%.
The Revenue has been growing slightly by 0.12% in the past year.
The Revenue has been growing by 11.77% on average over the past years. This is quite good.
EPS 1Y (TTM)-187.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y19.25%
Revenue growth 5Y11.77%
Sales Q2Q%-5.19%
3.2 Future
The Earnings Per Share is expected to grow by 129.58% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.68% on average over the next years. This is quite good.
EPS Next Y450.69%
EPS Next 2Y196.47%
EPS Next 3Y129.58%
EPS Next 5YN/A
Revenue Next Year4.72%
Revenue Next 2Y7.32%
Revenue Next 3Y17.21%
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.
A Price/Forward Earnings ratio of 68.51 indicates a quite expensive valuation of SYZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYZ indicates a somewhat cheap valuation: SYZ is cheaper than 65.00% of the companies listed in the same industry.
SYZ's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 68.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYZ is valued a bit cheaper than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SYZ is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
SYZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 2Y196.47%
EPS Next 3Y129.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, 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 1.92. SYZ pays more dividend than 90.00% of the companies in the same industry.
With a Dividend Yield of 0.47, SYZ pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
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)N/A
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-128.89%
EPS Next 2Y196.47%
EPS Next 3Y129.58%
TSX:SYZ (4/25/2025, 7:00:00 PM)
8.65
+0.12 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners34.95%
Inst Owner ChangeN/A
Ins Owners3.3%
Ins Owner ChangeN/A
Market Cap202.32M
Analysts82
Price Target13.43 (55.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP-128.89%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.14%
Min EPS beat(2)-227.32%
Max EPS beat(2)197.03%
EPS beat(4)1
Avg EPS beat(4)-81.85%
Min EPS beat(4)-227.32%
Max EPS beat(4)197.03%
EPS beat(8)1
Avg EPS beat(8)-77.93%
EPS beat(12)3
Avg EPS beat(12)-48.75%
EPS beat(16)4
Avg EPS beat(16)-37.84%
Revenue beat(2)0
Avg Revenue beat(2)-6.13%
Min Revenue beat(2)-6.13%
Max Revenue beat(2)-6.13%
Revenue beat(4)0
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-6.13%
Max Revenue beat(4)-1.12%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)-1.45%
PT rev (1m)-3.19%
PT rev (3m)-1.25%
EPS NQ rev (1m)-33.35%
EPS NQ rev (3m)-33.35%
EPS NY rev (1m)17.92%
EPS NY rev (3m)11.61%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 68.51 | ||
| P/S | 3.08 | ||
| P/FCF | 16.85 | ||
| P/OCF | 16.54 | ||
| P/B | 5.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.82 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.13
Fwd EY1.46%
FCF(TTM)0.51
FCFY5.93%
OCF(TTM)0.52
OCFY6.05%
SpS2.8
BVpS1.61
TBVpS-1.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -1.93% | ||
| ROCE | 5.13% | ||
| ROIC | 3.65% | ||
| ROICexc | 4.62% | ||
| ROICexgc | N/A | ||
| OM | 4.97% | ||
| PM (TTM) | N/A | ||
| GM | 58.76% | ||
| FCFM | 18.3% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 2.16% | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 2.21 | ||
| Cash Conversion | 88.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.92 |
F-Score4
WACC9.72%
ROIC/WACC0.38
Cap/Depr(3y)10.42%
Cap/Depr(5y)13.15%
Cap/Sales(3y)2.07%
Cap/Sales(5y)2.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-187.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y450.69%
EPS Next 2Y196.47%
EPS Next 3Y129.58%
EPS Next 5YN/A
Revenue 1Y (TTM)0.12%
Revenue growth 3Y19.25%
Revenue growth 5Y11.77%
Sales Q2Q%-5.19%
Revenue Next Year4.72%
Revenue Next 2Y7.32%
Revenue Next 3Y17.21%
Revenue Next 5Y13.68%
EBIT growth 1Y-9.08%
EBIT growth 3Y-24.92%
EBIT growth 5Y-24.29%
EBIT Next Year388.14%
EBIT Next 3Y92.01%
EBIT Next 5Y64.35%
FCF growth 1Y4.3%
FCF growth 3Y-12.6%
FCF growth 5Y-6.01%
OCF growth 1Y0.44%
OCF growth 3Y-13.37%
OCF growth 5Y-6.36%