TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - TSX:TCS - CA8789501043 - Common Stock
34.77 CAD
+0.13 (+0.38%)
We assign a fundamental rating of 6 out of 10 to TCS. TCS was compared to 63 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. TCS is growing strongly while it is still valued neutral. This is a good combination! With these ratings, TCS could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
TCS had positive earnings in the past year.
In the past year TCS had a positive cash flow from operations.
Each year in the past 5 years TCS has been profitable.
TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.37%, TCS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TCS's Return On Equity of 6.29% is fine compared to the rest of the industry. TCS outperforms 74.60% of its industry peers.
TCS has a Return On Invested Capital of 7.08%. This is in the better half of the industry: TCS outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROIC | 7.08% |
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
TCS's Profit Margin of 2.46% is fine compared to the rest of the industry. TCS outperforms 68.25% of its industry peers.
In the last couple of years the Profit Margin of TCS has grown nicely.
With a decent Operating Margin value of 4.15%, TCS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TCS's Operating Margin has declined in the last couple of years.
TCS has a Gross Margin of 49.48%. This is comparable to the rest of the industry: TCS outperforms 55.56% of its industry peers.
TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% |
OM growth 3Y1.27%
OM growth 5Y-3.5%
PM growth 3Y-8.18%
PM growth 5Y2.88%
GM growth 3Y3.22%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
TCS 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 TCS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TCS has more shares outstanding
TCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.88 indicates that TCS is not in any danger for bankruptcy at the moment.
TCS's Altman-Z score of 6.88 is amongst the best of the industry. TCS outperforms 84.13% of its industry peers.
TCS has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
TCS has a better Debt to FCF ratio (0.05) than 95.24% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
TCS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.88 |
ROIC/WACC0.7
WACC10.17%
2.3 Liquidity
TCS has a Current Ratio of 1.30. This is a normal value and indicates that TCS is financially healthy and should not expect problems in meeting its short term obligations.
TCS has a Current ratio of 1.30. This is comparable to the rest of the industry: TCS outperforms 53.97% of its industry peers.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.17, TCS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 190.00%, which is quite impressive.
TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
TCS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
TCS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.96% yearly.
EPS 1Y (TTM)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
3.2 Future
TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 76.79% yearly.
Based on estimates for the next years, TCS will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
EPS Next 5YN/A
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y10.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 119.90, TCS can be considered very expensive at the moment.
65.08% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (25.56), we can say TCS is valued expensively.
TCS is valuated quite expensively with a Price/Forward Earnings ratio of 43.30.
61.90% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (34.62), we can say TCS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.9 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.85 | ||
| EV/EBITDA | 45.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TCS does not grow enough to justify the current Price/Earnings ratio.
TCS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TCS's earnings are expected to grow with 76.79% in the coming years.
PEG (NY)2.53
PEG (5Y)11.98
EPS Next 2Y66.4%
EPS Next 3Y76.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, TCS is not a good candidate for dividend investing.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.60. TCS pays more dividend than 93.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of TCS is nicely growing with an annual growth rate of 10.65%!
TCS has paid a dividend for at least 10 years, which is a reliable track record.
TCS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.65%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
TCS pays out 110.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.33%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
TSX:TCS (11/17/2025, 7:00:00 PM)
34.77
+0.13 (+0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners23.52%
Inst Owner ChangeN/A
Ins Owners15.83%
Ins Owner ChangeN/A
Market Cap514.25M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.78 (43.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP110.33%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.69%
Min EPS beat(2)-50.49%
Max EPS beat(2)-24.89%
EPS beat(4)0
Avg EPS beat(4)-39.33%
Min EPS beat(4)-53.95%
Max EPS beat(4)-24.89%
EPS beat(8)1
Avg EPS beat(8)-51.64%
EPS beat(12)4
Avg EPS beat(12)-4.95%
EPS beat(16)4
Avg EPS beat(16)-19.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)0.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)3
Avg Revenue beat(8)-2.5%
Revenue beat(12)7
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.51%
PT rev (1m)1.24%
PT rev (3m)1.24%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-40.88%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.9 | ||
| Fwd PE | 43.3 | ||
| P/S | 2.85 | ||
| P/FCF | 42.85 | ||
| P/OCF | 33.92 | ||
| P/B | 7.31 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 45.3 |
EPS(TTM)0.29
EY0.83%
EPS(NY)0.8
Fwd EY2.31%
FCF(TTM)0.81
FCFY2.33%
OCF(TTM)1.03
OCFY2.95%
SpS12.18
BVpS4.75
TBVpS2.95
PEG (NY)2.53
PEG (5Y)11.98
Graham Number5.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROCE | 10.55% | ||
| ROIC | 7.08% | ||
| ROICexc | 12.58% | ||
| ROICexgc | 38.16% | ||
| OM | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% | ||
| FCFM | 6.66% |
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
ROICexgc growth 3Y-30.43%
ROICexgc growth 5Y-17.16%
ROICexc growth 3Y-10.17%
ROICexc growth 5Y-2.96%
OM growth 3Y1.27%
OM growth 5Y-3.5%
PM growth 3Y-8.18%
PM growth 5Y2.88%
GM growth 3Y3.22%
GM growth 5Y0.16%
F-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 107.33% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 118.67 | ||
| Cash Conversion | 145.49% | ||
| Profit Quality | 271.31% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.88 |
F-Score7
WACC10.17%
ROIC/WACC0.7
Cap/Depr(3y)25.66%
Cap/Depr(5y)28.6%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.68%
Profit Quality(3y)283.78%
Profit Quality(5y)236.77%
High Growth Momentum
Growth
EPS 1Y (TTM)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y10.04%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year126.48%
EBIT Next 3Y76.57%
EBIT Next 5YN/A
FCF growth 1Y142.38%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y156.75%
OCF growth 3Y41.17%
OCF growth 5Y6.8%
TECSYS INC / TCS.CA FAQ
Can you provide the ChartMill fundamental rating for TECSYS INC?
ChartMill assigns a fundamental rating of 6 / 10 to TCS.CA.
Can you provide the valuation status for TECSYS INC?
ChartMill assigns a valuation rating of 4 / 10 to TECSYS INC (TCS.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for TECSYS INC?
TECSYS INC (TCS.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TCS stock?
The Price/Earnings (PE) ratio for TECSYS INC (TCS.CA) is 119.9 and the Price/Book (PB) ratio is 7.31.
Can you provide the dividend sustainability for TCS stock?
The dividend rating of TECSYS INC (TCS.CA) is 5 / 10 and the dividend payout ratio is 110.33%.