TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
29.55 CAD
-0.93 (-3.05%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 67 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. TCS has a correct valuation and a medium growth rate.
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.
In the past 5 years TCS has always been profitable.
In the past 5 years TCS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TCS (4.06%) is better than 71.64% of its industry peers.
Looking at the Return On Equity, with a value of 7.97%, TCS is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
TCS's Return On Invested Capital of 8.91% is fine compared to the rest of the industry. TCS outperforms 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.97% | ||
| ROIC | 8.91% |
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 2.91% is fine compared to the rest of the industry. TCS outperforms 64.18% of its industry peers.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS's Operating Margin of 4.94% is fine compared to the rest of the industry. TCS outperforms 67.16% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
TCS's Gross Margin of 50.47% is in line compared to the rest of the industry. TCS outperforms 58.21% of its industry peers.
TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.94% | ||
| PM (TTM) | 2.91% | ||
| GM | 50.47% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCS is destroying value.
The number of shares outstanding for TCS remains at a similar level compared to 1 year ago.
TCS has more shares outstanding than it did 5 years ago.
TCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.84 indicates that TCS is not in any danger for bankruptcy at the moment.
TCS has a better Altman-Z score (5.84) than 79.10% of its industry peers.
TCS has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
The Debt to FCF ratio of TCS (0.04) is better than 92.54% 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's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.84 |
ROIC/WACC0.89
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Current ratio of 1.25. This is comparable to the rest of the industry: TCS outperforms 55.22% of its industry peers.
TCS has a Quick Ratio of 1.13. 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 Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.76%, 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.
TCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.02%.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
EPS 1Y (TTM)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
3.2 Future
The Earnings Per Share is expected to grow by 54.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 82.08, TCS can be considered very expensive at the moment.
TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 64.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (27.25), we can say TCS is valued expensively.
Based on the Price/Forward Earnings ratio of 42.75, the valuation of TCS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 62.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.08 | ||
| Fwd PE | 42.75 |
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 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.3 | ||
| EV/EBITDA | 31.99 |
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.
The decent profitability rating of TCS may justify a higher PE ratio.
TCS's earnings are expected to grow with 54.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)8.2
EPS Next 2Y54.39%
EPS Next 3Y54.82%
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.20, TCS pays a better dividend. On top of this TCS pays more dividend than 97.01% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, TCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
92.60% 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.
DP92.6%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
TSX:TCS (1/9/2026, 7:00:00 PM)
29.55
-0.93 (-3.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap435.86M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target45.49 (53.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP92.6%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.96%
Min EPS beat(2)-50.49%
Max EPS beat(2)58.42%
EPS beat(4)1
Avg EPS beat(4)-11.24%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-25.65%
EPS beat(12)4
Avg EPS beat(12)-8.93%
EPS beat(16)5
Avg EPS beat(16)-12.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-1.88%
Revenue beat(12)7
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.39%
PT rev (1m)-2.34%
PT rev (3m)-7.47%
EPS NQ rev (1m)-36%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)-12.67%
EPS NY rev (3m)-15.5%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.08 | ||
| Fwd PE | 42.75 | ||
| P/S | 2.34 | ||
| P/FCF | 38.3 | ||
| P/OCF | 29.37 | ||
| P/B | 6.39 | ||
| P/tB | 10.46 | ||
| EV/EBITDA | 31.99 |
EPS(TTM)0.36
EY1.22%
EPS(NY)0.69
Fwd EY2.34%
FCF(TTM)0.77
FCFY2.61%
OCF(TTM)1.01
OCFY3.4%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)2.85
PEG (5Y)8.2
Graham Number6.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.97% | ||
| ROCE | 13.28% | ||
| ROIC | 8.91% | ||
| ROICexc | 15.88% | ||
| ROICexgc | 49.75% | ||
| OM | 4.94% | ||
| PM (TTM) | 2.91% | ||
| GM | 50.47% | ||
| FCFM | 6.11% |
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-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 111.58% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 180.65 | ||
| Cash Conversion | 120.51% | ||
| Profit Quality | 209.52% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 5.84 |
F-Score8
WACC10.01%
ROIC/WACC0.89
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)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
EPS Next Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year123.2%
EBIT Next 3Y65.06%
EBIT Next 5YN/A
FCF growth 1Y390.05%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y354.04%
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.
What is the valuation status of TECSYS INC (TCS.CA) stock?
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.
How financially healthy is TECSYS INC?
The financial health rating of TECSYS INC (TCS.CA) is 7 / 10.
What is the expected EPS growth for TECSYS INC (TCS.CA) stock?
The Earnings per Share (EPS) of TECSYS INC (TCS.CA) is expected to grow by 28.76% in the next year.