TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
26.06 CAD
-2.33 (-8.21%)
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.
- TCS had positive earnings in each of the past 5 years.
- Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
- TCS's Return On Assets of 4.06% is fine compared to the rest of the industry. TCS outperforms 70.59% of its industry peers.
- TCS has a better Return On Equity (7.97%) than 73.53% of its industry peers.
- With a decent Return On Invested Capital value of 8.91%, TCS is doing good in the industry, outperforming 72.06% of the companies in the same industry.
| 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 67.65% of its industry peers.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- TCS has a Operating Margin of 4.94%. This is in the better half of the industry: TCS outperforms 66.18% of its industry peers.
- TCS's Operating Margin has declined in the last couple of years.
- TCS's Gross Margin of 50.47% is in line compared to the rest of the industry. TCS outperforms 57.35% of its industry peers.
- 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. 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.
- 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.
- The debt/assets ratio for TCS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.65 indicates that TCS is not in any danger for bankruptcy at the moment.
- TCS has a better Altman-Z score (5.65) than 82.35% 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.
- TCS has a better Debt to FCF ratio (0.04) than 92.65% 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 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.65 |
ROIC/WACC0.88
WACC10.1%
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 in the better half of the industry: TCS outperforms 60.29% 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.
- TCS has a Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. TCS.CA Growth Analysis
3.1 Past
- TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.76%, 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 quite strong growth in Revenue. The Revenue has grown by 8.02% in the last year.
- 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
- 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 7.54% on average per year.
EPS Next Y46.87%
EPS Next 2Y70.37%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year10.27%
Revenue Next 2Y10.94%
Revenue Next 3Y7.54%
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.
4. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 72.39, TCS can be considered very expensive at the moment.
- TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 64.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (25.70), we can say TCS is valued expensively.
- TCS is valuated quite expensively with a Price/Forward Earnings ratio of 30.96.
- TCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 63.24% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (23.84), we can say TCS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.39 | ||
| Fwd PE | 30.96 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCS.
- TCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCS is cheaper than 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.53 | ||
| EV/EBITDA | 30.35 |
4.3 Compensation for Growth
- TCS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.54
PEG (5Y)7.23
EPS Next 2Y70.37%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.25%, TCS has a reasonable but not impressive dividend return.
- TCS's Dividend Yield is rather good when compared to the industry average which is at 0.27. TCS pays more dividend than 92.65% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, TCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 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 2Y70.37%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (3/13/2026, 7:00:00 PM)
26.06
-2.33 (-8.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-04 2026-03-04
Earnings (Next)06-24 2026-06-24
Inst Owners41.66%
Inst Owner ChangeN/A
Ins Owners15.75%
Ins Owner ChangeN/A
Market Cap381.52M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75
Price Target44.37 (70.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)1.64%
PT rev (3m)-4.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.66%
EPS NY rev (1m)15.01%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.39 | ||
| Fwd PE | 30.96 | ||
| P/S | 2.05 | ||
| P/FCF | 33.53 | ||
| P/OCF | 25.71 | ||
| P/B | 5.6 | ||
| P/tB | 9.16 | ||
| EV/EBITDA | 30.35 |
EPS(TTM)0.36
EY1.38%
EPS(NY)0.84
Fwd EY3.23%
FCF(TTM)0.78
FCFY2.98%
OCF(TTM)1.01
OCFY3.89%
SpS12.73
BVpS4.66
TBVpS2.85
PEG (NY)1.54
PEG (5Y)7.23
Graham Number6.14
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 | 5.65 |
F-Score8
WACC10.1%
ROIC/WACC0.88
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 Y46.87%
EPS Next 2Y70.37%
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 Year10.27%
Revenue Next 2Y10.94%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year127.41%
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 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 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 46.87% in the next year.