TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
33.59 CAD
+1.14 (+3.51%)
Last:
This TCS.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TCS.CA Profitability Analysis
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.
- In the past 5 years TCS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.18%, TCS is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
- With a decent Return On Equity value of 8.66%, TCS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- TCS has a better Return On Invested Capital (9.41%) than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROIC | 9.41% |
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 3.15%, TCS is doing good in the industry, outperforming 66.67% 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 (5.48%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of TCS has declined.
- TCS has a Gross Margin (51.34%) 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 | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% |
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. TCS.CA Health Analysis
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.
- TCS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.74 indicates that TCS is not in any danger for bankruptcy at the moment.
- TCS has a Altman-Z score of 5.74. This is amongst the best in the industry. TCS outperforms 83.33% of its industry peers.
- TCS has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
- TCS has a Debt to FCF ratio of 0.33. This is amongst the best in the industry. TCS outperforms 86.36% of its industry peers.
- TCS has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- TCS has a Debt to Equity ratio of 0.07. This is in the better half of the industry: TCS outperforms 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 5.74 |
ROIC/WACC0.99
WACC9.51%
2.3 Liquidity
- TCS has a Current Ratio of 1.19. 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 of 1.19. This is comparable to the rest of the industry: TCS outperforms 53.03% of its industry peers.
- TCS has a Quick Ratio of 1.11. 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 1.11. This is comparable to the rest of the industry: TCS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 |
3. TCS.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 100.00% over the past year.
- The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
- Looking at the last year, TCS shows a quite strong growth in Revenue. The Revenue has grown by 9.09% 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)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
3.2 Future
- TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.52% yearly.
- The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y34.67%
EPS Next 2Y60.18%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year9.2%
Revenue Next 2Y9.22%
Revenue Next 3Y7.37%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 83.98, which means the current valuation is very expensive for TCS.
- 62.12% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.38. TCS is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 45.15, the valuation of TCS can be described as expensive.
- TCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 62.12% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (38.20), we can say TCS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.98 | ||
| Fwd PE | 45.15 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCS.
- Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.82 | ||
| EV/EBITDA | 32.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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 55.52% in the coming years.
PEG (NY)2.42
PEG (5Y)8.39
EPS Next 2Y60.18%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.22%, 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 0.51. TCS pays more dividend than 89.39% of the companies in the same industry.
- TCS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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.
- TCS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.65%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 85.42% 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.
DP85.42%
EPS Next 2Y60.18%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (4/15/2026, 7:00:00 PM)
33.59
+1.14 (+3.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-04 2026-03-04/amc
Earnings (Next)06-24 2026-06-24
Inst Owners40.86%
Inst Owner ChangeN/A
Ins Owners15.8%
Ins Owner ChangeN/A
Market Cap490.75M
Revenue(TTM)189.65M
Net Income(TTM)5.97M
Analysts75.56
Price Target38.25 (13.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP85.42%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-25 2026-03-25 (0.09)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.75%
Min EPS beat(2)37.09%
Max EPS beat(2)58.42%
EPS beat(4)2
Avg EPS beat(4)5.03%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-21.77%
EPS beat(12)4
Avg EPS beat(12)-22.26%
EPS beat(16)6
Avg EPS beat(16)-9.21%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)-0.41%
PT rev (1m)-13.79%
PT rev (3m)-15.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)-8.31%
EPS NY rev (3m)4.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.98 | ||
| Fwd PE | 45.15 | ||
| P/S | 2.59 | ||
| P/FCF | 30.82 | ||
| P/OCF | 24.45 | ||
| P/B | 7.12 | ||
| P/tB | 11.41 | ||
| EV/EBITDA | 32.65 |
EPS(TTM)0.4
EY1.19%
EPS(NY)0.74
Fwd EY2.22%
FCF(TTM)1.09
FCFY3.25%
OCF(TTM)1.37
OCFY4.09%
SpS12.98
BVpS4.72
TBVpS2.94
PEG (NY)2.42
PEG (5Y)8.39
Graham Number6.51827 (-80.59%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROCE | 14.02% | ||
| ROIC | 9.41% | ||
| ROICexc | 18.42% | ||
| ROICexgc | 58.66% | ||
| OM | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% | ||
| FCFM | 8.4% |
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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 124.44% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 266.26 | ||
| Cash Conversion | 146.34% | ||
| Profit Quality | 266.66% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 5.74 |
F-Score6
WACC9.51%
ROIC/WACC0.99
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)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
EPS Next Y34.67%
EPS Next 2Y60.18%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
Revenue Next Year9.2%
Revenue Next 2Y9.22%
Revenue Next 3Y7.37%
Revenue Next 5YN/A
EBIT growth 1Y87%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year144.76%
EBIT Next 3Y65.8%
EBIT Next 5YN/A
FCF growth 1Y66.41%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y93.63%
OCF growth 3Y41.17%
OCF growth 5Y6.8%
TECSYS INC / TCS.CA Fundamental Analysis 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 for TCS stock?
ChartMill assigns a valuation rating of 4 / 10 to TECSYS INC (TCS.CA). This can be considered as Fairly Valued.
What is the profitability of TCS stock?
TECSYS INC (TCS.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TECSYS INC (TCS.CA) stock?
The Price/Earnings (PE) ratio for TECSYS INC (TCS.CA) is 83.98 and the Price/Book (PB) ratio is 7.12.
What is the earnings growth outlook for TECSYS INC?
The Earnings per Share (EPS) of TECSYS INC (TCS.CA) is expected to grow by 34.67% in the next year.