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.
- 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
- TCS has a Return On Assets of 4.18%. This is in the better half of the industry: TCS outperforms 74.24% of its industry peers.
- TCS has a Return On Equity of 8.66%. This is in the better half of the industry: TCS outperforms 72.73% of its industry peers.
- With a decent Return On Invested Capital value of 9.41%, TCS is doing good in the industry, outperforming 78.79% 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 has a better Profit Margin (3.15%) than 66.67% of its industry peers.
- TCS's Profit Margin has improved in the last couple of years.
- TCS has a better Operating Margin (5.48%) than 65.15% of its industry peers.
- In the last couple of years the Operating Margin of TCS has declined.
- Looking at the Gross Margin, with a value of 51.34%, TCS is in line with its industry, outperforming 54.55% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- TCS has an Altman-Z score of 5.84. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.84, TCS belongs to the best of the industry, outperforming 84.85% 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.
- TCS has a better Debt to FCF ratio (0.33) than 86.36% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that TCS is not too dependend on debt financing.
- TCS has a better Debt to Equity ratio (0.07) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 5.84 |
ROIC/WACC0.97
WACC9.74%
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.
- With a Current ratio value of 1.19, TCS perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that TCS should not have too much problems paying its short term obligations.
- TCS's Quick ratio of 1.11 is in line compared to the rest of the industry. TCS outperforms 53.03% of 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.
- 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.
- The Revenue has grown by 9.09% in the past year. This is quite good.
- The Revenue has been growing by 10.96% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y34.67%
EPS Next 2Y60.18%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year9.2%
Revenue Next 2Y9.22%
Revenue Next 3Y7.37%
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. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- TCS is valuated quite expensively with a Price/Earnings ratio of 88.00.
- Based on the Price/Earnings ratio, TCS is valued a bit cheaper than 63.64% of the companies in the same industry.
- TCS is valuated expensively when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 47.31, TCS can be considered very expensive at the moment.
- 62.12% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.24. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 47.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCS is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.98 | ||
| EV/EBITDA | 33.63 |
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 55.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)8.79
EPS Next 2Y60.18%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- TCS has a Yearly Dividend Yield of 1.04%.
- Compared to an average industry Dividend Yield of 0.48, TCS pays a better dividend. On top of this TCS pays more dividend than 90.91% 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 | 1.04% |
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.
- 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
- TCS pays out 85.42% 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.
DP85.42%
EPS Next 2Y60.18%
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 | 1.04% |
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)-8.31%
EPS NY rev (3m)4.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 47.31 | ||
| P/S | 2.69 | ||
| P/FCF | 31.98 | ||
| P/OCF | 25.38 | ||
| P/B | 7.38 | ||
| P/tB | 11.84 | ||
| EV/EBITDA | 33.63 |
EPS(TTM)0.4
EY1.14%
EPS(NY)0.74
Fwd EY2.11%
FCF(TTM)1.1
FCFY3.13%
OCF(TTM)1.39
OCFY3.94%
SpS13.11
BVpS4.77
TBVpS2.97
PEG (NY)2.54
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 | 5.84 |
F-Score6
WACC9.74%
ROIC/WACC0.97
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 Y34.67%
EPS Next 2Y60.18%
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 Year9.2%
Revenue Next 2Y9.22%
Revenue Next 3Y7.37%
Revenue Next 5YN/A
EBIT growth 1Y87%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year144.76%
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 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 34.67% in the next year.