TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
33.27 CAD
-1.23 (-3.57%)
We assign a fundamental rating of 6 out of 10 to TCS. TCS was compared to 63 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. 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.
TCS had a positive operating cash flow in the past year.
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
TCS has a Return On Assets of 3.37%. This is in the better half of the industry: TCS outperforms 71.43% of its industry peers.
TCS's Return On Equity of 6.29% is fine compared to the rest of the industry. TCS outperforms 76.19% of its industry peers.
With a decent Return On Invested Capital value of 7.08%, TCS is doing good in the industry, outperforming 73.02% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 2.46%, TCS is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS has a better Operating Margin (4.15%) than 65.08% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 49.48%, TCS is in line with its industry, outperforming 55.56% of the companies in the same industry.
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.
Compared to 1 year ago, TCS has about the same amount of shares outstanding.
Compared to 5 years ago, TCS has more shares outstanding
Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
TCS has an Altman-Z score of 6.89. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
TCS has a better Altman-Z score (6.89) than 82.54% 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.
TCS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
TCS has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. TCS outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.89 |
ROIC/WACC0.72
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Current ratio of 1.30. This is comparable to the rest of the industry: TCS outperforms 49.21% of its industry peers.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, TCS is in line with its industry, outperforming 49.21% 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.
Measured over the past years, TCS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.01% on average per year.
The Revenue has been growing slightly by 5.01% in the past year.
Measured over the past years, TCS shows a quite strong growth in Revenue. The Revenue has been growing by 10.96% on average per year.
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
Based on estimates for the next years, TCS will show a very strong growth in Earnings Per Share. The EPS will grow by 76.93% on average per year.
The Revenue is expected to grow by 9.18% on average over the next years. This is quite good.
EPS Next Y49.76%
EPS Next 2Y79%
EPS Next 3Y76.93%
EPS Next 5YN/A
Revenue Next Year6.5%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
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.
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 114.72, which means the current valuation is very expensive for TCS.
63.49% 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 (26.41), we can say TCS is valued expensively.
The Price/Forward Earnings ratio is 35.80, which means the current valuation is very expensive for TCS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 61.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (35.40), we can say TCS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.72 | ||
| Fwd PE | 35.8 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.89 | ||
| EV/EBITDA | 45.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 76.93% in the coming years.
PEG (NY)2.31
PEG (5Y)11.46
EPS Next 2Y79%
EPS Next 3Y76.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, 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 1.68. TCS pays more dividend than 93.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
TCS has been paying a dividend for at least 10 years, so it has 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
110.33% of the earnings are spent on dividend by TCS. This is not a sustainable payout ratio.
TCS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP110.33%
EPS Next 2Y79%
EPS Next 3Y76.93%
TSX:TCS (12/4/2025, 7:00:00 PM)
33.27
-1.23 (-3.57%)
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 Cap490.73M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.47 (48.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)0.62%
PT rev (3m)0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)1.58%
EPS NY rev (3m)-21.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.72 | ||
| Fwd PE | 35.8 | ||
| P/S | 2.72 | ||
| P/FCF | 40.89 | ||
| P/OCF | 32.37 | ||
| P/B | 6.98 | ||
| P/tB | 11.26 | ||
| EV/EBITDA | 45.44 |
EPS(TTM)0.29
EY0.87%
EPS(NY)0.93
Fwd EY2.79%
FCF(TTM)0.81
FCFY2.45%
OCF(TTM)1.03
OCFY3.09%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)2.31
PEG (5Y)11.46
Graham Number5.58
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 | 6.89 |
F-Score7
WACC9.87%
ROIC/WACC0.72
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 Y49.76%
EPS Next 2Y79%
EPS Next 3Y76.93%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
Revenue Next Year6.5%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year126.41%
EBIT Next 3Y76.71%
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 114.72 and the Price/Book (PB) ratio is 6.98.
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%.