TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
28.92 CAD
-0.32 (-1.09%)
TCS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 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 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.
- 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's Return On Assets of 4.06% is fine compared to the rest of the industry. TCS outperforms 71.64% of its industry peers.
- TCS's Return On Equity of 7.97% is fine compared to the rest of the industry. TCS outperforms 74.63% of its industry peers.
- TCS has a better Return On Invested Capital (8.91%) than 74.63% 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
- With a decent Profit Margin value of 2.91%, TCS is doing good in the industry, outperforming 64.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- With a decent Operating Margin value of 4.94%, TCS is doing good in the industry, outperforming 67.16% of the companies in the same industry.
- 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.
- Compared to 5 years ago, TCS has more shares outstanding
- TCS has a better debt/assets ratio than last year.
2.2 Solvency
- TCS has an Altman-Z score of 5.75. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.75, TCS is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
- 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.
- A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.00, TCS belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.89
WACC10%
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's Current ratio of 1.25 is in line compared to the rest of the industry. TCS outperforms 55.22% of its industry peers.
- A Quick Ratio of 1.13 indicates that TCS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.13, TCS is in line with its industry, outperforming 52.24% of the companies in the same industry.
| 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.
- Measured over the past years, TCS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.01% on average per year.
- The Revenue has grown by 8.02% in the past year. This is quite good.
- 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
- TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.82% yearly.
- Based on estimates for the next years, TCS will show a small growth in Revenue. The Revenue will grow by 6.81% on average per year.
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 80.33.
- Compared to the rest of the industry, the Price/Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 64.18% of the companies listed in the same industry.
- TCS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 41.84, TCS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 62.69% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.33 | ||
| Fwd PE | 41.84 |
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 | 37.49 | ||
| EV/EBITDA | 31.24 |
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.
- TCS has a very decent profitability rating, which 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)2.79
PEG (5Y)8.03
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.
- TCS's Dividend Yield is rather good when compared to the industry average which is at 0.20. TCS pays more dividend than 97.01% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.92, TCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
- 92.60% of the earnings are spent on dividend by TCS. 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 (1/15/2026, 7:00:00 PM)
28.92
-0.32 (-1.09%)
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 Cap426.57M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target45.49 (57.3%)
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 | 80.33 | ||
| Fwd PE | 41.84 | ||
| P/S | 2.29 | ||
| P/FCF | 37.49 | ||
| P/OCF | 28.75 | ||
| P/B | 6.26 | ||
| P/tB | 10.24 | ||
| EV/EBITDA | 31.24 |
EPS(TTM)0.36
EY1.24%
EPS(NY)0.69
Fwd EY2.39%
FCF(TTM)0.77
FCFY2.67%
OCF(TTM)1.01
OCFY3.48%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)2.79
PEG (5Y)8.03
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 | 5.75 |
F-Score8
WACC10%
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.