TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
28.92 CAD
-0.32 (-1.09%)
We assign a fundamental rating of 6 out of 10 to TCS. TCS was compared to 67 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. TCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TCS was profitable.
- TCS had a positive operating cash flow in the past year.
- TCS had positive earnings in each of the past 5 years.
- TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.06%, TCS is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
- TCS has a Return On Equity of 7.97%. This is in the better half of the industry: TCS outperforms 74.63% of its industry peers.
- With a decent Return On Invested Capital value of 8.91%, TCS is doing good in 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
- The Profit Margin of TCS (2.91%) is better than 64.18% of its industry peers.
- In the last couple of years the Profit Margin of TCS has grown nicely.
- TCS has a better Operating Margin (4.94%) than 67.16% of its industry peers.
- TCS's Operating Margin has declined in the last couple of years.
- TCS has a Gross Margin (50.47%) which is in line with its industry peers.
- TCS's Gross Margin has been stable in the last couple of years.
| 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.
- TCS has about the same amout of shares outstanding than it did 1 year ago.
- TCS has more shares outstanding than it did 5 years ago.
- TCS has a better debt/assets ratio than last year.
2.2 Solvency
- TCS has an Altman-Z score of 5.80. 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 5.80, TCS is in the better half of the industry, outperforming 79.10% 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.
- TCS has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. TCS outperforms 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.
- TCS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.8 |
ROIC/WACC0.89
WACC10%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that TCS should not have too much problems paying its short term obligations.
- TCS has a Current ratio (1.25) which is in line with 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.
- 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
- The Earnings Per Share has grown by an impressive 111.76% over the past year.
- 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.
- Looking at the last year, TCS shows a quite strong growth in Revenue. The Revenue has grown by 8.02% in the last year.
- 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
- 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
- Based on the Price/Earnings ratio of 80.33, the valuation of TCS can be described as expensive.
- 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 27.54, TCS is valued quite expensively.
- A Price/Forward Earnings ratio of 41.84 indicates a quite expensive valuation of TCS.
- 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.
- TCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCS is cheaper than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.49 | ||
| EV/EBITDA | 31.62 |
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.
- A more expensive valuation may be justified as TCS's earnings are expected to grow with 54.82% in the coming years.
PEG (NY)2.79
PEG (5Y)8.03
EPS Next 2Y54.39%
EPS Next 3Y54.82%
5. Dividend
5.1 Amount
- TCS has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
- 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.
- TCS's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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 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
- 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 | 31.62 |
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 | 5.8 |
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.