TECSYS INC (TCS.CA) Fundamental Analysis & Valuation

TSX:TCS • CA8789501043

26.01 CAD
+0.46 (+1.8%)
Last: Mar 4, 2026, 07:00 PM
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This TCS.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

TCS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 70 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. TCS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. TCS.CA Profitability Analysis

1.1 Basic Checks

  • In the past year TCS was profitable.
  • 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.
TCS.CA Yearly Net Income VS EBIT VS OCF VS FCFTCS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M

1.2 Ratios

  • TCS has a better Return On Assets (4.06%) than 71.43% of its industry peers.
  • TCS has a better Return On Equity (7.97%) than 75.71% of its industry peers.
  • With a decent Return On Invested Capital value of 8.91%, TCS is doing good in the industry, outperforming 74.29% of the companies in the same industry.
Industry RankSector Rank
ROA 4.06%
ROE 7.97%
ROIC 8.91%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TCS.CA Yearly ROA, ROE, ROICTCS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.91%, TCS is in the better half of the industry, outperforming 68.57% 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 4.94%. This is in the better half of the industry: TCS outperforms 67.14% of its industry peers.
  • TCS's Operating Margin has declined in the last couple of years.
  • TCS has a Gross Margin (50.47%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of TCS has remained more or less at the same level.
Industry RankSector Rank
OM 4.94%
PM (TTM) 2.91%
GM 50.47%
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%
TCS.CA Yearly Profit, Operating, Gross MarginsTCS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • TCS has more shares outstanding than it did 5 years ago.
  • TCS has a better debt/assets ratio than last year.
TCS.CA Yearly Shares OutstandingTCS.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2024 2025 5M 10M
TCS.CA Yearly Total Debt VS Total AssetsTCS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2024 2025 20M 40M 60M 80M 100M

2.2 Solvency

  • TCS has an Altman-Z score of 5.27. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
  • TCS has a Altman-Z score of 5.27. This is in the better half of the industry: TCS outperforms 78.57% of its industry peers.
  • TCS has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
  • TCS has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. TCS outperforms 92.86% of its industry peers.
  • TCS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of TCS (0.00) is better than 81.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.04
Altman-Z 5.27
ROIC/WACC0.87
WACC10.29%
TCS.CA Yearly LT Debt VS Equity VS FCFTCS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

2.3 Liquidity

  • TCS has a Current Ratio of 1.25. 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 1.25, TCS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
  • A Quick Ratio of 1.13 indicates that TCS should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.13, TCS perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.13
TCS.CA Yearly Current Assets VS Current LiabilitesTCS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2024 2025 20M 40M 60M 80M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TCS.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 111.76% over the past year.
  • TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
  • The Revenue has grown by 8.02% in the past year. This is quite good.
  • 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)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%

3.2 Future

  • TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.52% yearly.
  • The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y27.7%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year8.64%
Revenue Next 2Y9.4%
Revenue Next 3Y7.37%
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.
TCS.CA Yearly Revenue VS EstimatesTCS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50M 100M 150M 200M
TCS.CA Yearly EPS VS EstimatesTCS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 0.4 0.6 0.8 1

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4

4. TCS.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 72.25, which means the current valuation is very expensive for TCS.
  • Based on the Price/Earnings ratio, TCS is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.03. TCS is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 37.87, the valuation of TCS can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 64.29% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.11. TCS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 72.25
Fwd PE 37.87
TCS.CA Price Earnings VS Forward Price EarningsTCS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • TCS's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 33.46
EV/EBITDA 26.97
TCS.CA Per share dataTCS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • 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)2.61
PEG (5Y)7.22
EPS Next 2Y53.89%
EPS Next 3Y55.52%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TCS.CA Dividend Analysis

5.1 Amount

  • TCS has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of TCS dropped by -21.51% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • TCS's Dividend Yield is rather good when compared to the industry average which is at 0.27. TCS pays more dividend than 95.71% of the companies in the same industry.
  • TCS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.42%

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
TCS.CA Yearly Dividends per shareTCS.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

  • 92.60% 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.
DP92.6%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
TCS.CA Yearly Income VS Free CF VS DividendTCS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M
TCS.CA Dividend Payout.TCS.CA Dividend Payout, showing the Payout Ratio.TCS.CA Dividend Payout.PayoutRetained Earnings

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TCS.CA Fundamentals: All Metrics, Ratios and Statistics

TECSYS INC

TSX:TCS (3/4/2026, 7:00:00 PM)

26.01

+0.46 (+1.8%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)03-04
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap380.79M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target44.37 (70.59%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.42%
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP92.6%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.96%
Min EPS beat(2)-50.49%
Max EPS beat(2)58.42%
EPS beat(4)1
Avg EPS beat(4)-11.24%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-25.65%
EPS beat(12)4
Avg EPS beat(12)-8.93%
EPS beat(16)5
Avg EPS beat(16)-12.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-1.88%
Revenue beat(12)7
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.39%
PT rev (1m)-2.47%
PT rev (3m)-10.31%
EPS NQ rev (1m)8.34%
EPS NQ rev (3m)-30.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.73%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
Industry RankSector Rank
PE 72.25
Fwd PE 37.87
P/S 2.04
P/FCF 33.46
P/OCF 25.66
P/B 5.59
P/tB 9.14
EV/EBITDA 26.97
EPS(TTM)0.36
EY1.38%
EPS(NY)0.69
Fwd EY2.64%
FCF(TTM)0.78
FCFY2.99%
OCF(TTM)1.01
OCFY3.9%
SpS12.73
BVpS4.66
TBVpS2.85
PEG (NY)2.61
PEG (5Y)7.22
Graham Number6.14
Profitability
Industry RankSector Rank
ROA 4.06%
ROE 7.97%
ROCE 13.28%
ROIC 8.91%
ROICexc 15.88%
ROICexgc 49.75%
OM 4.94%
PM (TTM) 2.91%
GM 50.47%
FCFM 6.11%
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-Score8
Asset Turnover1.39
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.04
Debt/EBITDA 0.01
Cap/Depr 111.58%
Cap/Sales 1.86%
Interest Coverage 180.65
Cash Conversion 120.51%
Profit Quality 209.52%
Current Ratio 1.25
Quick Ratio 1.13
Altman-Z 5.27
F-Score8
WACC10.29%
ROIC/WACC0.87
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)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
EPS Next Y27.7%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.64%
Revenue Next 2Y9.4%
Revenue Next 3Y7.37%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year124.61%
EBIT Next 3Y65.8%
EBIT Next 5YN/A
FCF growth 1Y390.05%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y354.04%
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.


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 27.7% in the next year.