TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
29.01 CAD
-0.88 (-2.94%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 67 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. TCS is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years TCS always reported a positive cash flow from operatings.
1.2 Ratios
- TCS's Return On Assets of 4.06% is fine compared to the rest of the industry. TCS outperforms 71.64% of its industry peers.
- With a decent Return On Equity value of 7.97%, TCS is doing good in the industry, outperforming 74.63% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.91%, TCS is in the better half of the industry, outperforming 74.63% 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 has a better Profit Margin (2.91%) than 64.18% of its industry peers.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- Looking at the Operating Margin, with a value of 4.94%, TCS is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
- TCS's Operating Margin has declined in the last couple of years.
- 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
- 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 5.76 indicates that TCS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TCS (5.76) is better than 79.10% of its industry peers.
- TCS has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
- TCS has a better Debt to FCF ratio (0.04) than 92.54% 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.
- The Debt to Equity ratio of TCS (0.00) is better than 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.76 |
ROIC/WACC0.89
WACC10.01%
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 (1.25) which is in line with its industry peers.
- A Quick Ratio of 1.13 indicates that TCS should not have too much problems paying its short term obligations.
- TCS's Quick ratio of 1.13 is in line compared to the rest of the industry. TCS outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. Growth
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.
- The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
- TCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.02%.
- 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)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
- Based on estimates for the next years, TCS will show a very strong growth in Earnings Per Share. The EPS will grow by 54.82% on average per year.
- The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
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. Valuation
4.1 Price/Earnings Ratio
- TCS is valuated quite expensively with a Price/Earnings ratio of 80.58.
- TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 64.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, TCS is valued quite expensively.
- TCS is valuated quite expensively with a Price/Forward Earnings ratio of 41.97.
- Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, TCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.58 | ||
| Fwd PE | 41.97 |
4.2 Price Multiples
- TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
- 67.16% 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 | 37.6 | ||
| EV/EBITDA | 31.35 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of TCS may justify a higher PE ratio.
- TCS's earnings are expected to grow with 54.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)8.05
EPS Next 2Y54.39%
EPS Next 3Y54.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.18%, TCS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.20, TCS pays a better dividend. On top of this TCS pays more dividend than 97.01% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.91, TCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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.
- 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 2Y54.39%
EPS Next 3Y54.82%
TSX:TCS (1/13/2026, 7:00:00 PM)
29.01
-0.88 (-2.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-03 2026-03-03
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap427.90M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target45.49 (56.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)-2.34%
PT rev (3m)-7.47%
EPS NQ rev (1m)-36%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)-12.67%
EPS NY rev (3m)-15.5%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.58 | ||
| Fwd PE | 41.97 | ||
| P/S | 2.3 | ||
| P/FCF | 37.6 | ||
| P/OCF | 28.84 | ||
| P/B | 6.28 | ||
| P/tB | 10.27 | ||
| EV/EBITDA | 31.35 |
EPS(TTM)0.36
EY1.24%
EPS(NY)0.69
Fwd EY2.38%
FCF(TTM)0.77
FCFY2.66%
OCF(TTM)1.01
OCFY3.47%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)2.8
PEG (5Y)8.05
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 | 5.76 |
F-Score8
WACC10.01%
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 Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year123.2%
EBIT Next 3Y65.06%
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.
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 28.76% in the next year.