TECSYS INC (TCS.CA) Stock Fundamental Analysis

TSX:TCS • CA8789501043

24.6 CAD
+0.5 (+2.07%)
Last: Feb 20, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 69 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • TCS had positive earnings in the past year.
  • TCS had a positive operating cash flow in the past year.
  • 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.
TCS.CA Yearly Net Income VS EBIT VS OCF VS FCFTCS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M

1.2 Ratios

  • TCS has a Return On Assets of 4.06%. This is in the better half of the industry: TCS outperforms 72.46% of its industry peers.
  • TCS's Return On Equity of 7.97% is fine compared to the rest of the industry. TCS outperforms 75.36% of its industry peers.
  • TCS's Return On Invested Capital of 8.91% is fine compared to the rest of the industry. TCS outperforms 73.91% of its industry peers.
Industry RankSector 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
TCS.CA Yearly ROA, ROE, ROICTCS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • The Profit Margin of TCS (2.91%) is better than 66.67% 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 66.67% of its industry peers.
  • TCS's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 50.47%, TCS is in line with its industry, outperforming 57.97% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TCS has remained more or less at the same level.
Industry RankSector 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%
TCS.CA Yearly Profit, Operating, Gross MarginsTCS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCS 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.
  • TCS has a better debt/assets ratio than last year.
TCS.CA Yearly Shares OutstandingTCS.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2024 2025 5M 10M
TCS.CA Yearly Total Debt VS Total AssetsTCS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2024 2025 20M 40M 60M 80M 100M

2.2 Solvency

  • TCS has an Altman-Z score of 5.08. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.08, TCS belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
  • 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 92.75% 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 81.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.04
Altman-Z 5.08
ROIC/WACC0.87
WACC10.3%
TCS.CA Yearly LT Debt VS Equity VS FCFTCS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

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 comparable to the rest of the industry.
  • 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.
  • With a Quick ratio value of 1.13, TCS perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.13
TCS.CA Yearly Current Assets VS Current LiabilitesTCS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2024 2025 20M 40M 60M 80M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • TCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.02%.
  • 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

  • The Earnings Per Share is expected to grow by 54.04% on average over the next years. This is a very strong growth
  • TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y26.81%
EPS Next 2Y53.22%
EPS Next 3Y54.04%
EPS Next 5YN/A
Revenue Next Year8.44%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
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.
TCS.CA Yearly Revenue VS EstimatesTCS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50M 100M 150M 200M
TCS.CA Yearly EPS VS EstimatesTCS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 68.33, 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 65.22% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, TCS is valued quite expensively.
  • A Price/Forward Earnings ratio of 36.13 indicates a quite expensive valuation of TCS.
  • Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
  • TCS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 68.33
Fwd PE 36.13
TCS.CA Price Earnings VS Forward Price EarningsTCS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCS is on the same level as its industry peers.
  • 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 RankSector Rank
P/FCF 31.65
EV/EBITDA 25.25
TCS.CA Per share dataTCS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • TCS has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TCS's earnings are expected to grow with 54.04% in the coming years.
PEG (NY)2.55
PEG (5Y)6.83
EPS Next 2Y53.22%
EPS Next 3Y54.04%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • TCS has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of TCS has falen by -26.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • TCS's Dividend Yield is rather good when compared to the industry average which is at 0.27. TCS pays more dividend than 95.65% of the companies in the same industry.
  • TCS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

  • The dividend of TCS is nicely growing with an annual growth rate of 10.65%!
  • 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
TCS.CA Yearly Dividends per shareTCS.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

  • TCS pays out 92.60% 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.
DP92.6%
EPS Next 2Y53.22%
EPS Next 3Y54.04%
TCS.CA Yearly Income VS Free CF VS DividendTCS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M
TCS.CA Dividend Payout.TCS.CA Dividend Payout, showing the Payout Ratio.TCS.CA Dividend Payout.PayoutRetained Earnings

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TECSYS INC

TSX:TCS (2/20/2026, 7:00:00 PM)

24.6

+0.5 (+2.07%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)02-26
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap360.14M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target43.66 (77.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
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)-4.04%
PT rev (3m)-12.3%
EPS NQ rev (1m)8.34%
EPS NQ rev (3m)-30.66%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-15.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-2.21%
Valuation
Industry RankSector Rank
PE 68.33
Fwd PE 36.13
P/S 1.93
P/FCF 31.65
P/OCF 24.27
P/B 5.28
P/tB 8.64
EV/EBITDA 25.25
EPS(TTM)0.36
EY1.46%
EPS(NY)0.68
Fwd EY2.77%
FCF(TTM)0.78
FCFY3.16%
OCF(TTM)1.01
OCFY4.12%
SpS12.73
BVpS4.66
TBVpS2.85
PEG (NY)2.55
PEG (5Y)6.83
Graham Number6.14
Profitability
Industry RankSector 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 RankSector 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 5.08
F-Score8
WACC10.3%
ROIC/WACC0.87
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 Y26.81%
EPS Next 2Y53.22%
EPS Next 3Y54.04%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.44%
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 Year119.83%
EBIT Next 3Y64.22%
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 26.81% in the next year.