TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
30.58 CAD
+0.16 (+0.53%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 64 industry peers in the Software industry. TCS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCS was profitable.
TCS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.06%, TCS is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
With a decent Return On Equity value of 7.97%, TCS is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Return On Invested Capital of TCS (8.91%) is better than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.97% | ||
| ROIC | 8.91% |
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
TCS has a Profit Margin of 2.91%. This is in the better half of the industry: TCS outperforms 71.88% of its industry peers.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS's Operating Margin of 4.94% is fine compared to the rest of the industry. TCS outperforms 71.88% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
TCS has a Gross Margin of 50.47%. This is in the better half of the industry: TCS outperforms 60.94% of its industry peers.
TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.94% | ||
| PM (TTM) | 2.91% | ||
| GM | 50.47% |
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.
Compared to 1 year ago, TCS has about the same amount of shares outstanding.
Compared to 5 years ago, TCS has more shares outstanding
TCS has a better debt/assets ratio than last year.
2.2 Solvency
TCS has an Altman-Z score of 5.96. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
TCS has a Altman-Z score of 5.96. This is amongst the best in the industry. TCS outperforms 81.25% of its industry peers.
TCS has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
The Debt to FCF ratio of TCS (0.04) is better than 95.31% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
TCS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TCS outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.89
WACC10.01%
2.3 Liquidity
TCS has a Current Ratio of 1.25. 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 (1.25) which is in line with its industry peers.
TCS has a Quick Ratio of 1.13. This is a normal value and indicates that TCS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, TCS perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
TCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.76%, which is quite impressive.
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.
The Revenue has grown by 8.02% in the past year. This is quite good.
Measured over the past years, TCS shows a quite strong growth in Revenue. The Revenue has been growing by 10.96% on average per year.
EPS 1Y (TTM)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
3.2 Future
Based on estimates for the next years, TCS will show a very strong growth in Earnings Per Share. The EPS will grow by 55.52% on average per year.
The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y27.7%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year8.64%
Revenue Next 2Y9.4%
Revenue Next 3Y7.37%
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
A Price/Earnings ratio of 84.94 indicates a quite expensive valuation of TCS.
TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 67.19% of the companies in the same industry.
TCS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.77.
The Price/Forward Earnings ratio is 44.53, which means the current valuation is very expensive for TCS.
67.19% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.94 | ||
| Fwd PE | 44.53 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than TCS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.64 | ||
| EV/EBITDA | 33.03 |
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.
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 55.52% in the coming years.
PEG (NY)3.07
PEG (5Y)8.49
EPS Next 2Y53.89%
EPS Next 3Y55.52%
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.12%.
TCS's Dividend Yield is rather good when compared to the industry average which is at 0.20. TCS pays more dividend than 95.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
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
92.60% 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.
DP92.6%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
TSX:TCS (12/30/2025, 7:00:00 PM)
30.58
+0.16 (+0.53%)
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 Cap451.06M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts80
Price Target45.49 (48.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP92.6%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.96%
Min EPS beat(2)-50.49%
Max EPS beat(2)58.42%
EPS beat(4)1
Avg EPS beat(4)-11.24%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-25.65%
EPS beat(12)4
Avg EPS beat(12)-8.93%
EPS beat(16)5
Avg EPS beat(16)-12.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-1.88%
Revenue beat(12)7
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.39%
PT rev (1m)-8.04%
PT rev (3m)-7.47%
EPS NQ rev (1m)-36%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)-14.73%
EPS NY rev (3m)-16.19%
Revenue NQ rev (1m)-2.85%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.94 | ||
| Fwd PE | 44.53 | ||
| P/S | 2.42 | ||
| P/FCF | 39.64 | ||
| P/OCF | 30.4 | ||
| P/B | 6.62 | ||
| P/tB | 10.83 | ||
| EV/EBITDA | 33.03 |
EPS(TTM)0.36
EY1.18%
EPS(NY)0.69
Fwd EY2.25%
FCF(TTM)0.77
FCFY2.52%
OCF(TTM)1.01
OCFY3.29%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)3.07
PEG (5Y)8.49
Graham Number6.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.97% | ||
| ROCE | 13.28% | ||
| ROIC | 8.91% | ||
| ROICexc | 15.88% | ||
| ROICexgc | 49.75% | ||
| OM | 4.94% | ||
| PM (TTM) | 2.91% | ||
| GM | 50.47% | ||
| FCFM | 6.11% |
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-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 111.58% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 180.65 | ||
| Cash Conversion | 120.51% | ||
| Profit Quality | 209.52% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 5.96 |
F-Score8
WACC10.01%
ROIC/WACC0.89
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)111.76%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%140%
EPS Next Y27.7%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.64%
Revenue Next 2Y9.4%
Revenue Next 3Y7.37%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year124.14%
EBIT Next 3Y65.8%
EBIT Next 5YN/A
FCF growth 1Y390.05%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y354.04%
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 84.94 and the Price/Book (PB) ratio is 6.62.
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 92.6%.