TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
33.26 CAD
-0.01 (-0.03%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 64 industry peers in the Software industry. TCS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TCS is not overvalued while it is showing excellent growth. This is an interesting combination. This makes TCS very considerable for growth investing!
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.
In the past 5 years TCS has always been profitable.
TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.37%, TCS is doing good in the industry, outperforming 70.31% of the companies in the same industry.
The Return On Equity of TCS (6.29%) is better than 76.56% of its industry peers.
With a decent Return On Invested Capital value of 7.08%, TCS is doing good in the industry, outperforming 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROIC | 7.08% |
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
Looking at the Profit Margin, with a value of 2.46%, TCS is in the better half of the industry, outperforming 68.75% 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 4.15%, TCS is doing good in the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Operating Margin of TCS has declined.
The Gross Margin of TCS (49.48%) 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 | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% |
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
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.
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 6.63. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
TCS has a better Altman-Z score (6.63) than 82.81% of its industry peers.
TCS has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
TCS's Debt to FCF ratio of 0.05 is amongst the best of the industry. TCS outperforms 95.31% 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.
TCS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.63 |
ROIC/WACC0.72
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TCS should not have too much problems paying its short term obligations.
TCS's Current ratio of 1.30 is in line compared to the rest of the industry. TCS outperforms 50.00% of its industry peers.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Quick ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 |
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.
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 small growth in Revenue. The Revenue has grown by 3.04% 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)3.04%
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 76.17% yearly.
TCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.66% yearly.
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.17%
EPS Next 5YN/A
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y9.66%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 92.39, the valuation of TCS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (26.34), we can say TCS is valued expensively.
A Price/Forward Earnings ratio of 41.42 indicates a quite expensive valuation of TCS.
TCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, TCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.39 | ||
| Fwd PE | 41.42 |
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 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.88 | ||
| EV/EBITDA | 42.86 |
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.
A more expensive valuation may be justified as TCS's earnings are expected to grow with 76.17% in the coming years.
PEG (NY)1.95
PEG (5Y)9.23
EPS Next 2Y66.4%
EPS Next 3Y76.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, 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 1.73. TCS pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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.
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
110.33% of the earnings are spent on dividend by TCS. This is not a sustainable payout ratio.
The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.33%
EPS Next 2Y66.4%
EPS Next 3Y76.17%
TSX:TCS (12/8/2025, 7:00:00 PM)
33.26
-0.01 (-0.03%)
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 Cap490.58M
Revenue(TTM)176.45M
Net Income(TTM)4.42M
Analysts80
Price Target46.58 (40.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP110.33%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.69%
Min EPS beat(2)-50.49%
Max EPS beat(2)-24.89%
EPS beat(4)0
Avg EPS beat(4)-39.33%
Min EPS beat(4)-53.95%
Max EPS beat(4)-24.89%
EPS beat(8)1
Avg EPS beat(8)-51.64%
EPS beat(12)4
Avg EPS beat(12)-4.95%
EPS beat(16)4
Avg EPS beat(16)-19.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)0.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)3
Avg Revenue beat(8)-2.5%
Revenue beat(12)7
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.51%
PT rev (1m)-6.42%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-1.69%
EPS NY rev (3m)-22.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.39 | ||
| Fwd PE | 41.42 | ||
| P/S | 2.72 | ||
| P/FCF | 40.88 | ||
| P/OCF | 32.36 | ||
| P/B | 6.98 | ||
| P/tB | 11.25 | ||
| EV/EBITDA | 42.86 |
EPS(TTM)0.36
EY1.08%
EPS(NY)0.8
Fwd EY2.41%
FCF(TTM)0.81
FCFY2.45%
OCF(TTM)1.03
OCFY3.09%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)1.95
PEG (5Y)9.23
Graham Number6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROCE | 10.55% | ||
| ROIC | 7.08% | ||
| ROICexc | 12.58% | ||
| ROICexgc | 38.16% | ||
| OM | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% | ||
| FCFM | 6.66% |
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-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 107.33% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 118.67 | ||
| Cash Conversion | 145.49% | ||
| Profit Quality | 271.31% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.63 |
F-Score7
WACC9.9%
ROIC/WACC0.72
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 Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.17%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y9.66%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year124.37%
EBIT Next 3Y65.8%
EBIT Next 5YN/A
FCF growth 1Y142.38%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y156.75%
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 92.39 and the Price/Book (PB) ratio is 6.98.
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 110.33%.