TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
34.96 CAD
+0.46 (+1.33%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make TCS suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TCS was profitable.
TCS had a positive operating cash flow in the past year.
In the past 5 years TCS has always been profitable.
TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TCS has a better Return On Assets (3.37%) than 71.43% of its industry peers.
TCS has a Return On Equity of 6.29%. This is in the better half of the industry: TCS outperforms 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.08%, TCS is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
| 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
TCS has a better Profit Margin (2.46%) than 68.25% of its industry peers.
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 65.08% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
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
TCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TCS has about the same amount of shares outstanding.
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 6.74 indicates that TCS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.74, TCS belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
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 | 6.74 |
ROIC/WACC0.72
WACC9.87%
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.
TCS has a Current ratio (1.30) which is comparable to the rest of the industry.
TCS has a Quick Ratio of 1.17. This is a normal value and indicates that TCS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TCS (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.00% 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.
TCS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
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
TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 76.93% yearly.
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
TCS is valuated quite expensively with a Price/Earnings ratio of 120.55.
Compared to the rest of the industry, the Price/Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 63.49% of the companies listed in the same industry.
TCS is valuated expensively when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.62 indicates a quite expensive valuation of TCS.
Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than 61.90% of the companies in the same industry.
TCS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.55 | ||
| Fwd PE | 37.62 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.97 | ||
| EV/EBITDA | 43.94 |
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.
A more expensive valuation may be justified as TCS's earnings are expected to grow with 76.93% in the coming years.
PEG (NY)2.42
PEG (5Y)12.05
EPS Next 2Y79%
EPS Next 3Y76.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, TCS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.68, 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 0.93, TCS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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.
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.
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 (12/3/2025, 7:00:00 PM)
34.96
+0.46 (+1.33%)
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 Cap515.66M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.47 (41.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)-21.34%
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 | 120.55 | ||
| Fwd PE | 37.62 | ||
| P/S | 2.86 | ||
| P/FCF | 42.97 | ||
| P/OCF | 34.01 | ||
| P/B | 7.33 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 43.94 |
EPS(TTM)0.29
EY0.83%
EPS(NY)0.93
Fwd EY2.66%
FCF(TTM)0.81
FCFY2.33%
OCF(TTM)1.03
OCFY2.94%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)2.42
PEG (5Y)12.05
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 | 6.74 |
F-Score7
WACC9.87%
ROIC/WACC0.72
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 120.55 and the Price/Book (PB) ratio is 7.33.
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%.