TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - TSX:TCS - CA8789501043 - Common Stock
35.68 CAD
+0.18 (+0.51%)
TCS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. 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
TCS had positive earnings in the past year.
In the past year TCS had a positive cash flow from operations.
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
TCS has a Return On Assets of 3.37%. This is in the better half of the industry: TCS outperforms 69.84% of its industry peers.
TCS has a Return On Equity of 6.29%. This is in the better half of the industry: TCS outperforms 76.19% of its industry peers.
With a decent Return On Invested Capital value of 7.08%, TCS is doing good in the industry, outperforming 74.60% 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
With a decent Profit Margin value of 2.46%, TCS is doing good in the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS has a Operating Margin of 4.15%. This is in the better half of the industry: TCS outperforms 68.25% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
TCS has a Gross Margin (49.48%) which is comparable to the rest of the industry.
TCS's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, TCS has more shares outstanding
Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
TCS has an Altman-Z score of 7.01. 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 7.01, TCS is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
The Debt to FCF ratio of TCS is 0.05, which is an excellent value as it means it would take TCS, only 0.05 years of fcf income to pay off all of its debts.
TCS's Debt to FCF ratio of 0.05 is amongst the best of the industry. TCS outperforms 93.65% 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 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 7.01 |
ROIC/WACC0.7
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TCS should not have too much problems paying its short term obligations.
The Current ratio of TCS (1.30) is comparable to the rest of the industry.
TCS has a Quick Ratio of 1.17. 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 Quick ratio of 1.17. This is comparable to the rest of the industry: TCS outperforms 49.21% of 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 190.00%, 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.
The Revenue has been growing slightly by 5.01% in the past year.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
EPS 1Y (TTM)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
3.2 Future
The Earnings Per Share is expected to grow by 76.17% on average over the next years. This is a very strong growth
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
TCS is valuated quite expensively with a Price/Earnings ratio of 123.03.
Compared to the rest of the industry, the Price/Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 65.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. TCS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.44, TCS can be considered very expensive at the moment.
TCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (22.53), we can say TCS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.03 | ||
| Fwd PE | 44.44 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.98 | ||
| EV/EBITDA | 46.59 |
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)2.59
PEG (5Y)12.29
EPS Next 2Y66.4%
EPS Next 3Y76.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, TCS is not a good candidate for dividend investing.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.57. TCS pays more dividend than 95.24% of the companies in the same industry.
With a Dividend Yield of 0.96, TCS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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 110.33% 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.
DP110.33%
EPS Next 2Y66.4%
EPS Next 3Y76.17%
TSX:TCS (11/3/2025, 7:00:00 PM)
35.68
+0.18 (+0.51%)
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 Cap527.71M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.78 (39.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)1.24%
PT rev (3m)1.24%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-40.88%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.03 | ||
| Fwd PE | 44.44 | ||
| P/S | 2.93 | ||
| P/FCF | 43.98 | ||
| P/OCF | 34.81 | ||
| P/B | 7.5 | ||
| P/tB | 12.11 | ||
| EV/EBITDA | 46.59 |
EPS(TTM)0.29
EY0.81%
EPS(NY)0.8
Fwd EY2.25%
FCF(TTM)0.81
FCFY2.27%
OCF(TTM)1.03
OCFY2.87%
SpS12.18
BVpS4.75
TBVpS2.95
PEG (NY)2.59
PEG (5Y)12.29
Graham Number5.57
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 | 7.01 |
F-Score7
WACC10.17%
ROIC/WACC0.7
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)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.17%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
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 Year126.48%
EBIT Next 3Y75.91%
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 123.03 and the Price/Book (PB) ratio is 7.5.
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%.