TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
32.05 CAD
-0.05 (-0.16%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 65 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. TCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCS was profitable.
In the past year TCS had a positive cash flow from operations.
Each year in the past 5 years TCS has 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 4.06%. This is in the better half of the industry: TCS outperforms 76.92% of its industry peers.
The Return On Equity of TCS (7.97%) is better than 78.46% of its industry peers.
TCS has a Return On Invested Capital of 8.91%. This is in the better half of the industry: TCS outperforms 76.92% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
TCS's Profit Margin of 2.91% is fine compared to the rest of the industry. TCS outperforms 72.31% of its industry peers.
TCS's Profit Margin has improved in the last couple of years.
TCS's Operating Margin of 4.94% is fine compared to the rest of the industry. TCS outperforms 70.77% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCS 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.
Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
TCS has an Altman-Z score of 6.18. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TCS (6.18) is better than 81.54% of its industry peers.
The Debt to FCF ratio of TCS is 0.04, which is an excellent value as it means it would take TCS, only 0.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCS (0.04) is better than 95.38% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, TCS belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 6.18 |
ROIC/WACC0.89
WACC10.02%
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.
TCS has a Current ratio of 1.25. This is comparable to the rest of the industry: TCS outperforms 52.31% of its industry peers.
TCS has a Quick Ratio of 1.13. 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 (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 111.76% over the past year.
The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
Looking at the last year, TCS shows a quite strong growth in Revenue. The Revenue has grown by 8.02% in the last year.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
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.
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 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
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
TCS is valuated quite expensively with a Price/Earnings ratio of 89.03.
TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 67.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, TCS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 46.67, 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 66.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, TCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.03 | ||
| Fwd PE | 46.67 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.54 | ||
| EV/EBITDA | 34.99 |
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)3.21
PEG (5Y)8.9
EPS Next 2Y53.89%
EPS Next 3Y55.52%
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.12%.
TCS's Dividend Yield is rather good when compared to the industry average which is at 0.23. TCS pays more dividend than 93.85% of the companies in the same industry.
With a Dividend Yield of 1.12, TCS pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
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 92.60% 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.
DP92.6%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
TSX:TCS (12/19/2025, 7:00:00 PM)
32.05
-0.05 (-0.16%)
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 Cap472.74M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts80
Price Target45.49 (41.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP92.6%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)-8.61%
PT rev (3m)-7.47%
EPS NQ rev (1m)-36%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)-14.73%
EPS NY rev (3m)-32.93%
Revenue NQ rev (1m)-2.85%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.03 | ||
| Fwd PE | 46.67 | ||
| P/S | 2.54 | ||
| P/FCF | 41.54 | ||
| P/OCF | 31.86 | ||
| P/B | 6.93 | ||
| P/tB | 11.35 | ||
| EV/EBITDA | 34.99 |
EPS(TTM)0.36
EY1.12%
EPS(NY)0.69
Fwd EY2.14%
FCF(TTM)0.77
FCFY2.41%
OCF(TTM)1.01
OCFY3.14%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)3.21
PEG (5Y)8.9
Graham Number6.12
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.18 |
F-Score8
WACC10.02%
ROIC/WACC0.89
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 Year124.37%
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.
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 89.03 and the Price/Book (PB) ratio is 6.93.
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 92.6%.