TECSYS INC (TCS.CA) Stock Fundamental Analysis
TSX:TCS - Toronto Stock Exchange - CA8789501043 - Common Stock - Currency: CAD
TCS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 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. These ratings could make TCS a good candidate 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.
Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.18%, TCS is doing good in the industry, outperforming 64.06% of the companies in the same industry.
TCS's Return On Equity of 6.26% is fine compared to the rest of the industry. TCS outperforms 70.31% of its industry peers.
TCS has a better Return On Invested Capital (6.66%) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.26% | ||
| ROIC | 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
1.3 Margins
Looking at the Profit Margin, with a value of 2.53%, TCS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
TCS's Profit Margin has improved in the last couple of years.
The Operating Margin of TCS (4.07%) is better than 65.63% of its industry peers.
In the last couple of years the Operating Margin of TCS has declined.
TCS has a Gross Margin (48.34%) 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 | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 48.34% |
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. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.62 indicates that TCS is not in any danger for bankruptcy at the moment.
TCS's Altman-Z score of 6.62 is amongst the best of the industry. TCS outperforms 82.81% of its industry peers.
The Debt to FCF ratio of TCS is 0.10, which is an excellent value as it means it would take TCS, only 0.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.10, TCS belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
TCS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
TCS has a better Debt to Equity ratio (0.01) than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 6.62 |
ROIC/WACC0.68
WACC9.73%
2.3 Liquidity
TCS has a Current Ratio of 1.32. 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 (1.32) which is comparable to the rest of the 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 of 1.19. This is comparable to the rest of the industry: TCS outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 123.08% 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 3.04%.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
EPS 1Y (TTM)123.08%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%450%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%5.92%
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 10.88% yearly.
EPS Next Y149.37%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 132.00 indicates a quite expensive valuation of TCS.
Compared to the rest of the industry, the Price/Earnings ratio of TCS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TCS is valued quite expensively.
TCS is valuated quite expensively with a Price/Forward Earnings ratio of 52.93.
Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 132 | ||
| Fwd PE | 52.93 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
65.63% of the companies in the same industry are more expensive than TCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.43 | ||
| EV/EBITDA | 52.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.88
PEG (5Y)13.19
EPS Next 2Y106.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.88%, 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 95.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
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 109.39% 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.
DP109.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
TSX:TCS (7/11/2025, 7:00:00 PM)
38.28
-0.28 (-0.73%)
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 Cap568.08M
Analysts80
Price Target50.39 (31.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP109.39%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.44%
Min EPS beat(2)-27.99%
Max EPS beat(2)-24.89%
EPS beat(4)0
Avg EPS beat(4)-38.33%
Min EPS beat(4)-53.95%
Max EPS beat(4)-24.89%
EPS beat(8)2
Avg EPS beat(8)-33.07%
EPS beat(12)4
Avg EPS beat(12)-9.07%
EPS beat(16)4
Avg EPS beat(16)-20.48%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.52%
Max Revenue beat(2)1.9%
Revenue beat(4)2
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-1.79%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 132 | ||
| Fwd PE | 52.93 | ||
| P/S | 3.22 | ||
| P/FCF | 43.43 | ||
| P/OCF | 40.85 | ||
| P/B | 7.97 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 52.05 |
EPS(TTM)0.29
EY0.76%
EPS(NY)0.72
Fwd EY1.89%
FCF(TTM)0.88
FCFY2.3%
OCF(TTM)0.94
OCFY2.45%
SpS11.89
BVpS4.8
TBVpS3.15
PEG (NY)0.88
PEG (5Y)13.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.26% | ||
| ROCE | 9.92% | ||
| ROIC | 6.66% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 56.17% | ||
| OM | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 48.34% | ||
| FCFM | 7.41% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 29.82% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 87.6 | ||
| Cash Conversion | 139.64% | ||
| Profit Quality | 293.21% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 6.62 |
F-Score7
WACC9.73%
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)123.08%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%450%
EPS Next Y149.37%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%5.92%
Revenue Next Year11.92%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y77.05%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year187.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y207.33%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y186.47%
OCF growth 3Y41.17%
OCF growth 5Y6.8%