TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
34.5 CAD
-0.88 (-2.49%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 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 priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, TCS could be worth investigating further 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.
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 71.43% of the companies in the same industry.
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.
TCS has a better Return On Invested Capital (7.08%) than 73.02% of its industry peers.
| 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 68.25% of the companies in the same industry.
TCS's Profit Margin has improved in the last couple of years.
TCS has a better Operating Margin (4.15%) than 65.08% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
The Gross Margin of TCS (49.48%) 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
TCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TCS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TCS has more shares outstanding
TCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.74 indicates that TCS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.74, TCS belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
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 has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. TCS outperforms 95.24% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
TCS has a better Debt to Equity ratio (0.00) than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.74 |
ROIC/WACC0.72
WACC9.86%
2.3 Liquidity
TCS has a Current Ratio of 1.30. 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 (1.30) which is in line with its industry peers.
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.
The Quick ratio of TCS (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.00% over the past year.
TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
TCS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
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)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 76.93% 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 9.18% yearly.
EPS Next Y49.76%
EPS Next 2Y79%
EPS Next 3Y76.93%
EPS Next 5YN/A
Revenue Next Year6.5%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 118.97, TCS can be considered very expensive at the moment.
TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 63.49% of the companies in the same industry.
TCS is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.13 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 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, TCS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.97 | ||
| Fwd PE | 37.13 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.41 | ||
| EV/EBITDA | 43.94 |
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.
TCS's earnings are expected to grow with 76.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.39
PEG (5Y)11.89
EPS Next 2Y79%
EPS Next 3Y76.93%
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.93%, which is pretty low.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.68. TCS pays more dividend than 93.65% of the companies in the same industry.
With a Dividend Yield of 0.93, TCS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
TCS pays out 110.33% 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.
DP110.33%
EPS Next 2Y79%
EPS Next 3Y76.93%
TSX:TCS (12/2/2025, 7:00:00 PM)
34.5
-0.88 (-2.49%)
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 Cap508.88M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.47 (43.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)0.62%
PT rev (3m)0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)1.58%
EPS NY rev (3m)-21.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.97 | ||
| Fwd PE | 37.13 | ||
| P/S | 2.82 | ||
| P/FCF | 42.41 | ||
| P/OCF | 33.56 | ||
| P/B | 7.24 | ||
| P/tB | 11.67 | ||
| EV/EBITDA | 43.94 |
EPS(TTM)0.29
EY0.84%
EPS(NY)0.93
Fwd EY2.69%
FCF(TTM)0.81
FCFY2.36%
OCF(TTM)1.03
OCFY2.98%
SpS12.21
BVpS4.77
TBVpS2.96
PEG (NY)2.39
PEG (5Y)11.89
Graham Number5.58
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 | 6.74 |
F-Score7
WACC9.86%
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)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
EPS Next Y49.76%
EPS Next 2Y79%
EPS Next 3Y76.93%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
Revenue Next Year6.5%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year126.41%
EBIT Next 3Y76.71%
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 118.97 and the Price/Book (PB) ratio is 7.24.
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%.