TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
35.2 CAD
+0.36 (+1.03%)
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.
- TCS had a positive operating cash flow in the past year.
- 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
- TCS's Return On Assets of 4.18% is fine compared to the rest of the industry. TCS outperforms 73.91% of its industry peers.
- TCS has a better Return On Equity (8.66%) than 73.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.41%, TCS is in the better half of the industry, outperforming 79.71% 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
- TCS's Profit Margin of 3.15% is fine compared to the rest of the industry. TCS outperforms 68.12% of its industry peers.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- Looking at the Operating Margin, with a value of 5.48%, TCS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- 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 | 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
- 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.
- 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 5.89 indicates that TCS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.89, TCS belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 0.33, TCS belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- TCS has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TCS (0.07) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 5.89 |
ROIC/WACC0.95
WACC9.95%
2.3 Liquidity
- TCS has a Current Ratio of 1.19. 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 (1.19) which is in line with its industry peers.
- 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 of 1.11. This is comparable to the rest of the industry: TCS outperforms 50.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 |
3. TCS.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 100.00% over the past year.
- The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
- TCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
- 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)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.
- Based on estimates for the next years, TCS will show a quite strong growth in Revenue. The Revenue will grow by 8.64% on average per year.
EPS Next Y25.21%
EPS Next 2Y51.51%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y10.15%
Revenue Next 3Y8.64%
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 decreasing: in the next years the growth will be less than in the last years.
4. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- TCS is valuated quite expensively with a Price/Earnings ratio of 88.00.
- TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 63.77% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (27.42), we can say TCS is valued expensively.
- Based on the Price/Forward Earnings ratio of 52.88, the valuation of TCS can be described as expensive.
- TCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 63.77% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (22.29), we can say TCS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 52.88 |
4.2 Price Multiples
- TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.98 | ||
| EV/EBITDA | 34.01 |
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.
- TCS's earnings are expected to grow with 55.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)8.79
EPS Next 2Y51.51%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- TCS has a Yearly Dividend Yield of 1.03%.
- Compared to an average industry Dividend Yield of 0.47, TCS pays a better dividend. On top of this TCS pays more dividend than 91.30% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
- On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
- TCS has paid a dividend for at least 10 years, which is a reliable track record.
- TCS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.65%
Div Incr Years10
Div Non Decr Years10
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 2Y51.51%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (4/24/2026, 7:00:00 PM)
35.2
+0.36 (+1.03%)
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 Owners40.86%
Inst Owner ChangeN/A
Ins Owners15.8%
Ins Owner ChangeN/A
Market Cap509.34M
Revenue(TTM)189.65M
Net Income(TTM)5.97M
Analysts75.56
Price Target38.25 (8.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP85.42%
Div Incr Years10
Div Non Decr Years10
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)-13.79%
PT rev (3m)-15.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)-14.75%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 52.88 | ||
| P/S | 2.69 | ||
| P/FCF | 31.98 | ||
| P/OCF | 25.38 | ||
| P/B | 7.38 | ||
| P/tB | 11.84 | ||
| EV/EBITDA | 34.01 |
EPS(TTM)0.4
EY1.14%
EPS(NY)0.67
Fwd EY1.89%
FCF(TTM)1.1
FCFY3.13%
OCF(TTM)1.39
OCFY3.94%
SpS13.11
BVpS4.77
TBVpS2.97
PEG (NY)3.49
PEG (5Y)8.79
Graham Number6.54973 (-81.39%)
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 | 5.89 |
F-Score6
WACC9.95%
ROIC/WACC0.95
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 Y25.21%
EPS Next 2Y51.51%
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 Year10.59%
Revenue Next 2Y10.15%
Revenue Next 3Y8.64%
Revenue Next 5YN/A
EBIT growth 1Y87%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year143.66%
EBIT Next 3Y70.55%
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 for TCS stock?
ChartMill assigns a valuation rating of 4 / 10 to TECSYS INC (TCS.CA). This can be considered as Fairly Valued.
What is the profitability of TCS stock?
TECSYS INC (TCS.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TECSYS INC (TCS.CA) stock?
The Price/Earnings (PE) ratio for TECSYS INC (TCS.CA) is 88 and the Price/Book (PB) ratio is 7.38.
What is the earnings growth outlook for TECSYS INC?
The Earnings per Share (EPS) of TECSYS INC (TCS.CA) is expected to grow by 25.21% in the next year.