TECSYS INC (TCS.CA) Stock Fundamental Analysis
TSX:TCS - Toronto Stock Exchange - CA8789501043 - Common Stock - Currency: CAD
Taking everything into account, TCS scores 5 out of 10 in our fundamental rating. TCS was compared to 63 industry peers in the Software industry. TCS has only an average score on both its financial health and profitability. TCS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
TCS's Return On Assets of 2.33% is fine compared to the rest of the industry. TCS outperforms 61.67% of its industry peers.
TCS has a Return On Equity of 5.01%. This is in the better half of the industry: TCS outperforms 66.67% of its industry peers.
TCS has a Return On Invested Capital of 5.55%. This is in the better half of the industry: TCS outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.01% | ||
| ROIC | 5.55% |
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
With a decent Profit Margin value of 1.73%, TCS is doing good in the industry, outperforming 61.67% of the companies in the same industry.
TCS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.19%, TCS is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
TCS's Operating Margin has declined in the last couple of years.
TCS has a Gross Margin (47.20%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TCS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.19% | ||
| PM (TTM) | 1.73% | ||
| GM | 47.2% |
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
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 5 years ago, TCS has more shares outstanding
2.2 Solvency
TCS has an Altman-Z score of 6.80. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TCS (6.80) is better than 85.00% of its industry peers.
The Debt to FCF ratio of TCS is 0.13, which is an excellent value as it means it would take TCS, only 0.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.13, TCS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
TCS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
TCS's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. TCS outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 6.8 |
ROIC/WACC0.57
WACC9.72%
2.3 Liquidity
TCS has a Current Ratio of 1.22. 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 1.22. This is comparable to the rest of the industry: TCS outperforms 53.33% of its industry peers.
A Quick Ratio of 1.08 indicates that TCS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, TCS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.86%, which is quite impressive.
Measured over the past years, TCS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -35.30% on average per year.
Looking at the last year, TCS shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
Measured over the past years, TCS shows a quite strong growth in Revenue. The Revenue has been growing by 17.52% on average per year.
EPS 1Y (TTM)42.86%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%60%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%3.1%
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 111.67% on average per year.
Based on estimates for the next years, TCS will show a small growth in Revenue. The Revenue will grow by 7.89% on average per year.
EPS Next Y157.94%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y6.93%
Revenue Next 3Y7.89%
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
The Price/Earnings ratio is 198.50, which means the current valuation is very expensive for TCS.
TCS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.78, TCS is valued quite expensively.
TCS is valuated quite expensively with a Price/Forward Earnings ratio of 54.90.
Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than the industry average as 68.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 198.5 | ||
| Fwd PE | 54.9 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.82 | ||
| EV/EBITDA | 65.34 |
4.3 Compensation for Growth
TCS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TCS's earnings are expected to grow with 111.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y135.86%
EPS Next 3Y111.67%
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, TCS pays a better dividend. On top of this TCS pays more dividend than 93.33% of the companies listed in the same industry.
With a Dividend Yield of 0.85, TCS pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
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)N/A
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
159.38% of the earnings are spent on dividend by TCS. This is not a sustainable payout ratio.
DP159.38%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
TSX:TCS (4/25/2025, 7:00:00 PM)
39.7
-0.47 (-1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.76%
Inst Owner ChangeN/A
Ins Owners17.22%
Ins Owner ChangeN/A
Market Cap589.15M
Analysts80
Price Target50.39 (26.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP159.38%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.97%
Min EPS beat(2)-53.95%
Max EPS beat(2)-27.99%
EPS beat(4)0
Avg EPS beat(4)-48.57%
Min EPS beat(4)-65.86%
Max EPS beat(4)-27.99%
EPS beat(8)2
Avg EPS beat(8)-35.91%
EPS beat(12)4
Avg EPS beat(12)-13.96%
EPS beat(16)4
Avg EPS beat(16)-18.99%
Revenue beat(2)1
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)1.9%
Revenue beat(4)1
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)5.11%
PT rev (3m)8.33%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-21.62%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-32.52%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-6.1%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 198.5 | ||
| Fwd PE | 54.9 | ||
| P/S | 3.39 | ||
| P/FCF | 51.82 | ||
| P/OCF | 49.05 | ||
| P/B | 9.82 | ||
| P/tB | 16.52 | ||
| EV/EBITDA | 65.34 |
EPS(TTM)0.2
EY0.5%
EPS(NY)0.72
Fwd EY1.82%
FCF(TTM)0.77
FCFY1.93%
OCF(TTM)0.81
OCFY2.04%
SpS11.72
BVpS4.04
TBVpS2.4
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.01% | ||
| ROCE | 8.51% | ||
| ROIC | 5.55% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 43.68% | ||
| OM | 3.19% | ||
| PM (TTM) | 1.73% | ||
| GM | 47.2% | ||
| FCFM | 6.54% |
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 3Y-56.87%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.53%
ROICexc growth 5YN/A
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 22.76% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 59.02 | ||
| Cash Conversion | 143.6% | ||
| Profit Quality | 377.99% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 6.8 |
F-Score8
WACC9.72%
ROIC/WACC0.57
Cap/Depr(3y)24.45%
Cap/Depr(5y)29.02%
Cap/Sales(3y)0.56%
Cap/Sales(5y)0.8%
Profit Quality(3y)215.45%
Profit Quality(5y)255.32%
High Growth Momentum
Growth
EPS 1Y (TTM)42.86%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%60%
EPS Next Y157.94%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%3.1%
Revenue Next Year2.16%
Revenue Next 2Y6.93%
Revenue Next 3Y7.89%
Revenue Next 5YN/A
EBIT growth 1Y39.85%
EBIT growth 3Y-27.63%
EBIT growth 5YN/A
EBIT Next Year42.72%
EBIT Next 3Y45.46%
EBIT Next 5YN/A
FCF growth 1Y136.38%
FCF growth 3Y-37.68%
FCF growth 5Y3.75%
OCF growth 1Y109.91%
OCF growth 3Y-36.67%
OCF growth 5Y3.44%