TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - TSX:TCS - CA8789501043 - Common Stock
34.17 CAD
+0.09 (+0.26%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 64 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. TCS is growing strongly while it is still valued neutral. This is a good combination! This makes TCS very considerable for growth investing!
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.
In the past 5 years TCS always reported a positive cash flow from operatings.
1.2 Ratios
TCS's Return On Assets of 3.37% is fine compared to the rest of the industry. TCS outperforms 65.63% of its industry peers.
TCS has a better Return On Equity (6.29%) than 73.44% of its industry peers.
With a decent Return On Invested Capital value of 7.08%, TCS is doing good in the industry, outperforming 75.00% 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 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS's Operating Margin of 4.15% is fine compared to the rest of the industry. TCS outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
TCS has a Gross Margin (49.48%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TCS has remained more or less at the same level.
| 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
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.
Compared to 5 years ago, TCS has more shares outstanding
The debt/assets ratio for TCS has been reduced compared to a year ago.
2.2 Solvency
TCS has an Altman-Z score of 6.80. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TCS (6.80) is better than 78.13% of its industry peers.
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 has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. TCS outperforms 92.19% 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 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.8 |
ROIC/WACC0.68
WACC10.43%
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.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying 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.
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.
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 106.19% 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 9.67% yearly.
EPS Next Y90.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y10.88%
Revenue Next 3Y9.67%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 117.83, which means the current valuation is very expensive for TCS.
Based on the Price/Earnings ratio, TCS is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (27.41), we can say TCS is valued expensively.
With a Price/Forward Earnings ratio of 27.71, TCS can be considered very expensive at the moment.
73.44% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
TCS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.83 | ||
| Fwd PE | 27.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCS is valued a bit cheaper than 60.94% of the companies in the same industry.
TCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCS is cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.2 | ||
| EV/EBITDA | 44.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 106.19% in the coming years.
PEG (NY)1.3
PEG (5Y)11.77
EPS Next 2Y106.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.46, TCS pays a better dividend. On top of this TCS pays more dividend than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
TCS has paid a dividend for at least 10 years, which is a reliable track record.
TCS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.65%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
110.33% of the earnings are spent on dividend by TCS. 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 2Y106.19%
EPS Next 3YN/A
TSX:TCS (9/17/2025, 7:00:00 PM)
34.17
+0.09 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners33.26%
Inst Owner ChangeN/A
Ins Owners17.07%
Ins Owner ChangeN/A
Market Cap506.40M
Analysts80
Price Target49.16 (43.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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%
PT rev (3m)-2.43%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-23.65%
EPS NY rev (3m)-23.65%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.83 | ||
| Fwd PE | 27.71 | ||
| P/S | 2.81 | ||
| P/FCF | 42.2 | ||
| P/OCF | 33.4 | ||
| P/B | 7.2 | ||
| P/tB | 11.62 | ||
| EV/EBITDA | 44.55 |
EPS(TTM)0.29
EY0.85%
EPS(NY)1.23
Fwd EY3.61%
FCF(TTM)0.81
FCFY2.37%
OCF(TTM)1.02
OCFY2.99%
SpS12.16
BVpS4.74
TBVpS2.94
PEG (NY)1.3
PEG (5Y)11.77
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
ROICexcg growth 3Y-30.43%
ROICexcg 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 | 6.8 |
F-Score7
WACC10.43%
ROIC/WACC0.68
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 Y90.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
Revenue Next Year9.16%
Revenue Next 2Y10.88%
Revenue Next 3Y9.67%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year187.52%
EBIT Next 3YN/A
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%