TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
35.13 CAD
-0.1 (-0.28%)
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.
- Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
- TCS has a better Return On Assets (4.18%) than 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.
- TCS has a better Return On Invested Capital (9.41%) than 78.79% of its industry peers.
| 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
- With a decent Profit Margin value of 3.15%, TCS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- TCS has a Operating Margin of 5.48%. This is in the better half of the industry: TCS outperforms 65.15% of its industry peers.
- In the last couple of years the Operating Margin of TCS has declined.
- The Gross Margin of TCS (51.34%) 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 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
- 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.
- TCS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.89 indicates that TCS is not in any danger for bankruptcy at the moment.
- TCS has a better Altman-Z score (5.89) than 84.85% of its industry peers.
- 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 Debt to FCF ratio of 0.33. This is amongst the best in the industry. TCS outperforms 86.36% of its industry peers.
- TCS has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TCS (0.07) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 5.89 |
ROIC/WACC0.96
WACC9.77%
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.
- TCS's Current ratio of 1.19 is in line compared to the rest of the industry. TCS outperforms 56.06% of its industry peers.
- TCS has a Quick Ratio of 1.11. 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 Quick ratio, with a value of 1.11, TCS is in line with its industry, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 |
3. TCS.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 100.00% over the past year.
- The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 55.52% on average over the next years. This is a very strong growth
- Based on estimates for the next years, TCS will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
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
- Based on the Price/Earnings ratio of 87.83, the valuation of TCS can be described as expensive.
- Based on the Price/Earnings ratio, TCS is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
- TCS is valuated expensively when we compare the Price/Earnings ratio to 27.71, which is the current average of the S&P500 Index.
- TCS is valuated quite expensively with a Price/Forward Earnings ratio of 47.22.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 62.12% of the companies listed in the same industry.
- TCS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 38.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.83 | ||
| Fwd PE | 47.22 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCS.
- 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 | 31.92 | ||
| EV/EBITDA | 34.04 |
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.
- A more expensive valuation may be justified as TCS's earnings are expected to grow with 55.52% in the coming years.
PEG (NY)2.53
PEG (5Y)8.78
EPS Next 2Y60.18%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.04%, TCS has a reasonable but not impressive dividend return.
- 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.
- With a Dividend Yield of 1.04, TCS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
- 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.
- The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP85.42%
EPS Next 2Y60.18%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (4/21/2026, 7:00:00 PM)
35.13
-0.1 (-0.28%)
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 Cap508.33M
Revenue(TTM)189.65M
Net Income(TTM)5.97M
Analysts75.56
Price Target38.25 (8.88%)
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 | 87.83 | ||
| Fwd PE | 47.22 | ||
| P/S | 2.68 | ||
| P/FCF | 31.92 | ||
| P/OCF | 25.33 | ||
| P/B | 7.37 | ||
| P/tB | 11.82 | ||
| EV/EBITDA | 34.04 |
EPS(TTM)0.4
EY1.14%
EPS(NY)0.74
Fwd EY2.12%
FCF(TTM)1.1
FCFY3.13%
OCF(TTM)1.39
OCFY3.95%
SpS13.11
BVpS4.77
TBVpS2.97
PEG (NY)2.53
PEG (5Y)8.78
Graham Number6.54973 (-81.36%)
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 | 5.89 |
F-Score6
WACC9.77%
ROIC/WACC0.96
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 87.83 and the Price/Book (PB) ratio is 7.37.
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.