TECSYS INC (TCS.CA) Stock Fundamental Analysis
TSX:TCS - Toronto Stock Exchange - CA8789501043 - Common Stock - Currency: CAD
Overall TCS gets a fundamental rating of 5 out of 10. We evaluated TCS against 66 industry peers in the Software industry. TCS has only an average score on both its financial health and profitability. TCS is quite expensive at the moment. It does show a decent growth rate.
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.
TCS had positive earnings in each of the past 5 years.
Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
TCS has a Return On Assets of 2.07%. This is in the better half of the industry: TCS outperforms 65.15% of its industry peers.
The Return On Equity of TCS (3.94%) is better than 66.67% of its industry peers.
The Return On Invested Capital of TCS (4.61%) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.94% | ||
| ROIC | 4.61% |
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 1.49%, TCS is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
TCS's Profit Margin has declined in the last couple of years.
The Operating Margin of TCS (2.76%) is better than 65.15% 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 46.80%, TCS is in line with its industry, outperforming 53.03% of the companies in the same industry.
TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.76% | ||
| PM (TTM) | 1.49% | ||
| GM | 46.8% |
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
2. Health
2.1 Basic Checks
TCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 8.54 indicates that TCS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.54, TCS belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
The Debt to FCF ratio of TCS is 0.25, which is an excellent value as it means it would take TCS, only 0.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.25, TCS belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TCS is not too dependend on debt financing.
TCS's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. TCS outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 8.54 |
ROIC/WACC0.36
WACC12.73%
2.3 Liquidity
A Current Ratio of 1.31 indicates that TCS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.31, TCS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Quick ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
TCS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -35.30% yearly.
Looking at the last year, TCS shows a small growth in Revenue. The Revenue has grown by 5.46% in the last year.
Measured over the past years, TCS shows a quite strong growth in Revenue. The Revenue has been growing by 17.52% on average per year.
EPS 1Y (TTM)13.33%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%350%
Revenue 1Y (TTM)5.46%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%2.3%
3.2 Future
TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 111.67% yearly.
TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.89% yearly.
EPS Next Y185.52%
EPS Next 2Y135.69%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue Next Year0.97%
Revenue Next 2Y6.96%
Revenue Next 3Y7.89%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 264.76, the valuation of TCS can be described as expensive.
60.61% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
TCS is valuated expensively when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 62.33, which means the current valuation is very expensive for TCS.
69.70% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (22.70), we can say TCS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 264.76 | ||
| Fwd PE | 62.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCS.
The rest of the industry has a similar Price/Free Cash Flow ratio as TCS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.62 | ||
| EV/EBITDA | 82.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TCS's earnings are expected to grow with 111.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)N/A
EPS Next 2Y135.69%
EPS Next 3Y111.67%
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.72%, which is pretty low.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.66. TCS pays more dividend than 90.91% of the companies in the same industry.
With a Dividend Yield of 0.72, TCS pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of TCS is nicely growing with an annual growth rate of 12.45%!
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)12.45%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
TCS pays out 183.37% of its income as dividend. This is not a sustainable payout ratio.
TCS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP183.37%
EPS Next 2Y135.69%
EPS Next 3Y111.67%
TSX:TCS (2/21/2025, 7:00:00 PM)
45.01
-1.95 (-4.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.76%
Inst Owner ChangeN/A
Ins Owners17.22%
Ins Owner ChangeN/A
Market Cap663.45M
Analysts77.78
Price Target47.94 (6.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.27
Dividend Growth(5Y)12.45%
DP183.37%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.21%
Min EPS beat(2)-53.95%
Max EPS beat(2)-46.48%
EPS beat(4)1
Avg EPS beat(4)-40.05%
Min EPS beat(4)-65.86%
Max EPS beat(4)6.07%
EPS beat(8)3
Avg EPS beat(8)-7.78%
EPS beat(12)4
Avg EPS beat(12)-13.36%
EPS beat(16)5
Avg EPS beat(16)-16.74%
Revenue beat(2)0
Avg Revenue beat(2)-6.89%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)-6.75%
Revenue beat(4)1
Avg Revenue beat(4)-4.02%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)0.61%
Revenue beat(8)4
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)-0.19%
PT rev (1m)3.07%
PT rev (3m)4.44%
EPS NQ rev (1m)-32.31%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-25.3%
EPS NY rev (3m)-25.3%
Revenue NQ rev (1m)-7.32%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 264.76 | ||
| Fwd PE | 62.33 | ||
| P/S | 3.85 | ||
| P/FCF | 97.62 | ||
| P/OCF | 88 | ||
| P/B | 10.16 | ||
| P/tB | 16.38 | ||
| EV/EBITDA | 82.4 |
EPS(TTM)0.17
EY0.38%
EPS(NY)0.72
Fwd EY1.6%
FCF(TTM)0.46
FCFY1.02%
OCF(TTM)0.51
OCFY1.14%
SpS11.7
BVpS4.43
TBVpS2.75
PEG (NY)1.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.94% | ||
| ROCE | 7.06% | ||
| ROIC | 4.61% | ||
| ROICexc | 7.96% | ||
| ROICexgc | 21.77% | ||
| OM | 2.76% | ||
| PM (TTM) | 1.49% | ||
| GM | 46.8% | ||
| FCFM | 3.94% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 26.26% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 39.34 | ||
| Cash Conversion | 99.34% | ||
| Profit Quality | 264.02% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 8.54 |
F-Score8
WACC12.73%
ROIC/WACC0.36
Cap/Depr(3y)24.45%
Cap/Depr(5y)29.02%
Cap/Sales(3y)0.56%
Cap/Sales(5y)0.8%
Profit Quality(3y)215.45%
Profit Quality(5y)255.32%
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%350%
EPS Next Y185.52%
EPS Next 2Y135.69%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue 1Y (TTM)5.46%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%2.3%
Revenue Next Year0.97%
Revenue Next 2Y6.96%
Revenue Next 3Y7.89%
Revenue Next 5YN/A
EBIT growth 1Y25.79%
EBIT growth 3Y-27.63%
EBIT growth 5YN/A
EBIT Next Year62.16%
EBIT Next 3Y45.46%
EBIT Next 5YN/A
FCF growth 1Y-36.38%
FCF growth 3Y-37.68%
FCF growth 5Y3.75%
OCF growth 1Y-33.55%
OCF growth 3Y-36.67%
OCF growth 5Y3.44%