TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
35.38 CAD
-1.12 (-3.07%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 63 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
Each year in the past 5 years TCS has been profitable.
TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TCS (3.37%) is better than 68.25% of its industry peers.
The Return On Equity of TCS (6.29%) is better than 74.60% of its industry peers.
TCS's Return On Invested Capital of 7.08% is fine compared to the rest of the industry. TCS outperforms 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
Looking at the Profit Margin, with a value of 2.46%, TCS is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS has a better Operating Margin (4.15%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
TCS has a Gross Margin (49.48%) which is comparable to the rest of the industry.
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.
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.
TCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.12 indicates that TCS is not in any danger for bankruptcy at the moment.
TCS has a Altman-Z score of 7.12. This is amongst the best in the industry. TCS outperforms 80.95% 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.
With an excellent Debt to FCF ratio value of 0.05, TCS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
TCS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, TCS belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 7.12 |
ROIC/WACC0.7
WACC10.1%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TCS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, TCS perfoms like the industry average, 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.
With a Quick ratio value of 1.17, TCS perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
| 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.
Looking at the last year, TCS shows a small growth in Revenue. The Revenue has grown by 5.01% 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)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
Based on estimates for the next years, TCS will show a very strong growth in Earnings Per Share. The EPS will grow by 76.93% on average per year.
TCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.18% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 122.00, which means the current valuation is very expensive for TCS.
65.08% 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 26.31, TCS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 38.08, 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 61.90% of the companies in the same industry.
TCS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122 | ||
| Fwd PE | 38.08 |
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.
68.25% of the companies in the same industry are more expensive than TCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.49 | ||
| EV/EBITDA | 47.62 |
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.
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)2.45
PEG (5Y)12.19
EPS Next 2Y79%
EPS Next 3Y76.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, TCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.76, TCS pays a better dividend. On top of this TCS pays more dividend than 93.65% of the companies listed in the same industry.
With a Dividend Yield of 1.02, TCS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.33%
EPS Next 2Y79%
EPS Next 3Y76.93%
TSX:TCS (11/28/2025, 7:00:00 PM)
35.38
-1.12 (-3.07%)
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 Cap521.86M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.47 (39.82%)
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 | 122 | ||
| Fwd PE | 38.08 | ||
| P/S | 2.9 | ||
| P/FCF | 43.49 | ||
| P/OCF | 34.42 | ||
| P/B | 7.42 | ||
| P/tB | 11.97 | ||
| EV/EBITDA | 47.62 |
EPS(TTM)0.29
EY0.82%
EPS(NY)0.93
Fwd EY2.63%
FCF(TTM)0.81
FCFY2.3%
OCF(TTM)1.03
OCFY2.91%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)2.45
PEG (5Y)12.19
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 | 7.12 |
F-Score7
WACC10.1%
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 122 and the Price/Book (PB) ratio is 7.42.
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%.