TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
34.81 CAD
+1.17 (+3.48%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 63 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. TCS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes TCS very considerable for growth investing!
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.
Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
TCS's Return On Assets of 3.37% is fine compared to the rest of the industry. TCS outperforms 68.25% of its industry peers.
With a decent Return On Equity value of 6.29%, TCS is doing good in the industry, outperforming 74.60% of the companies in the same industry.
The Return On Invested Capital of TCS (7.08%) is better than 71.43% of its industry peers.
| 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
With a decent Profit Margin value of 2.46%, TCS is doing good in the industry, outperforming 68.25% of the companies in the same industry.
TCS's Profit Margin has improved in the last couple of years.
TCS has a Operating Margin of 4.15%. This is in the better half of the industry: TCS outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
TCS has a Gross Margin of 49.48%. This is comparable to the rest of the industry: TCS outperforms 55.56% of its industry peers.
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
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.
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 6.87 indicates that TCS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TCS (6.87) is better than 79.37% of its industry peers.
The Debt to FCF ratio of TCS is 0.05, which is an excellent value as it means it would take TCS, only 0.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.05, TCS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
TCS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.87 |
ROIC/WACC0.7
WACC10.05%
2.3 Liquidity
TCS has a Current Ratio of 1.30. This is a normal value and indicates that TCS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.30, TCS is in line with its industry, outperforming 50.79% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Quick ratio of 1.17. This is comparable to the rest of the industry: TCS outperforms 49.21% of its industry peers.
| 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.
TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
TCS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
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)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
The Earnings Per Share is expected to grow by 76.93% on average over the next years. This is a very strong growth
Based on estimates for the next years, TCS will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 120.03, the valuation of TCS can be described as expensive.
65.08% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.65. TCS is valued rather expensively when compared to this.
TCS is valuated quite expensively with a Price/Forward Earnings ratio of 37.46.
Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, TCS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.03 | ||
| Fwd PE | 37.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCS.
TCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCS is cheaper than 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.79 | ||
| EV/EBITDA | 45.23 |
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 76.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.41
PEG (5Y)11.99
EPS Next 2Y79%
EPS Next 3Y76.93%
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.76. TCS pays more dividend than 93.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
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
TCS pays out 110.33% of its income as dividend. 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 (11/24/2025, 7:00:00 PM)
34.81
+1.17 (+3.48%)
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 Cap513.45M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.47 (42.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-39.94%
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 | 120.03 | ||
| Fwd PE | 37.46 | ||
| P/S | 2.85 | ||
| P/FCF | 42.79 | ||
| P/OCF | 33.87 | ||
| P/B | 7.3 | ||
| P/tB | 11.78 | ||
| EV/EBITDA | 45.23 |
EPS(TTM)0.29
EY0.83%
EPS(NY)0.93
Fwd EY2.67%
FCF(TTM)0.81
FCFY2.34%
OCF(TTM)1.03
OCFY2.95%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)2.41
PEG (5Y)11.99
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 | 6.87 |
F-Score7
WACC10.05%
ROIC/WACC0.7
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 120.03 and the Price/Book (PB) ratio is 7.3.
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%.