TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
27.15 CAD
+1.09 (+4.18%)
Last:
This TCS.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TCS.CA Profitability Analysis
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.
- Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
- TCS's Return On Assets of 4.18% is fine compared to the rest of the industry. TCS outperforms 74.65% of its industry peers.
- TCS has a Return On Equity of 8.66%. This is in the better half of the industry: TCS outperforms 74.65% of its industry peers.
- With a decent Return On Invested Capital value of 9.41%, TCS is doing good in the industry, outperforming 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROIC | 9.41% |
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 3.15%, TCS is doing good in the industry, outperforming 69.01% of the companies in the same industry.
- TCS's Profit Margin has improved in the last couple of years.
- The Operating Margin of TCS (5.48%) is better than 69.01% of its industry peers.
- In the last couple of years the Operating Margin of TCS has declined.
- TCS has a Gross Margin (51.34%) which is in line with its industry peers.
- TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% |
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. TCS.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCS is destroying value.
- TCS has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for TCS has been increased compared to 5 years ago.
- Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.98 indicates that TCS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TCS (4.98) is better than 81.69% of its industry peers.
- The Debt to FCF ratio of TCS is 0.33, which is an excellent value as it means it would take TCS, only 0.33 years of fcf income to pay off all of its debts.
- TCS has a Debt to FCF ratio of 0.33. This is amongst the best in the industry. TCS outperforms 87.32% of its industry peers.
- TCS has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.07, TCS is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 4.98 |
ROIC/WACC0.94
WACC9.96%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that TCS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, TCS is in line with its industry, outperforming 56.34% of the companies in the same industry.
- TCS has a Quick Ratio of 1.11. 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 (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 |
3. TCS.CA Growth Analysis
3.1 Past
- TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
- The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
- Looking at the last year, TCS shows a quite strong growth in Revenue. The Revenue has grown by 9.09% in the last 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)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
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 55.52% on average per year.
- TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y46.87%
EPS Next 2Y70.37%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year10.27%
Revenue Next 2Y10.94%
Revenue Next 3Y7.54%
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 decreasing.
4. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 67.87 indicates a quite expensive valuation of TCS.
- 66.20% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.11, TCS is valued quite expensively.
- The Price/Forward Earnings ratio is 32.25, which means the current valuation is very expensive for TCS.
- Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than 64.79% of the companies in the same industry.
- TCS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.87 | ||
| Fwd PE | 32.25 |
4.2 Price Multiples
- TCS's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 69.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 25.85 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TCS has a very decent profitability rating, which may justify a higher PE ratio.
- TCS's earnings are expected to grow with 55.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)6.78
EPS Next 2Y70.37%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- TCS has a Yearly Dividend Yield of 1.27%.
- TCS's Dividend Yield is rather good when compared to the industry average which is at 0.44. TCS pays more dividend than 92.96% of the companies in the same industry.
- TCS's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
- As TCS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.65%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- 85.42% of the earnings are spent on dividend by TCS. This is not a sustainable payout ratio.
- The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP85.42%
EPS Next 2Y70.37%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (3/16/2026, 7:00:00 PM)
27.15
+1.09 (+4.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-04 2026-03-04/amc
Earnings (Next)06-24 2026-06-24
Inst Owners41.66%
Inst Owner ChangeN/A
Ins Owners15.75%
Ins Owner ChangeN/A
Market Cap397.48M
Revenue(TTM)189.65M
Net Income(TTM)5.97M
Analysts75
Price Target44.37 (63.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP85.42%
Div Incr Years9
Div Non Decr Years9
Ex-Date03-25 2026-03-25 (0.09)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.75%
Min EPS beat(2)37.09%
Max EPS beat(2)58.42%
EPS beat(4)2
Avg EPS beat(4)5.03%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-21.77%
EPS beat(12)4
Avg EPS beat(12)-22.26%
EPS beat(16)6
Avg EPS beat(16)-9.21%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)-0.41%
PT rev (1m)1.64%
PT rev (3m)-4.74%
EPS NQ rev (1m)-18.52%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)15.82%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)2.52%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.87 | ||
| Fwd PE | 32.25 | ||
| P/S | 2.1 | ||
| P/FCF | 24.96 | ||
| P/OCF | 19.8 | ||
| P/B | 5.76 | ||
| P/tB | 9.24 | ||
| EV/EBITDA | 25.85 |
EPS(TTM)0.4
EY1.47%
EPS(NY)0.84
Fwd EY3.1%
FCF(TTM)1.09
FCFY4.01%
OCF(TTM)1.37
OCFY5.05%
SpS12.95
BVpS4.71
TBVpS2.94
PEG (NY)1.45
PEG (5Y)6.78
Graham Number6.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROCE | 14.02% | ||
| ROIC | 9.41% | ||
| ROICexc | 18.42% | ||
| ROICexgc | 58.66% | ||
| OM | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% | ||
| FCFM | 8.4% |
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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 124.44% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 266.26 | ||
| Cash Conversion | 146.34% | ||
| Profit Quality | 266.66% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.98 |
F-Score6
WACC9.96%
ROIC/WACC0.94
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)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
EPS Next Y46.87%
EPS Next 2Y70.37%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
Revenue Next Year10.27%
Revenue Next 2Y10.94%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
EBIT growth 1Y87%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year127.41%
EBIT Next 3Y65.8%
EBIT Next 5YN/A
FCF growth 1Y66.41%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y93.63%
OCF growth 3Y41.17%
OCF growth 5Y6.8%
TECSYS INC / TCS.CA Fundamental Analysis 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 46.87% in the next year.