TOPICUS.COM INC-SUB VOTING (TOI.CA) Stock Fundamental Analysis
TSX-V:TOI - TSX Venture Exchange - CA89072T1021 - Common Stock - Currency: CAD
Taking everything into account, TOI scores 6 out of 10 in our fundamental rating. TOI was compared to 66 industry peers in the Software industry. TOI scores excellent on profitability, but there are some minor concerns on its financial health. TOI is growing strongly while it is still valued neutral. This is a good combination! This makes TOI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TOI was profitable.
TOI had a positive operating cash flow in the past year.
In multiple years TOI reported negative net income over the last 5 years.
Of the past 5 years TOI 4 years had a positive operating cash flow.
1.2 Ratios
TOI has a Return On Assets of 5.56%. This is in the better half of the industry: TOI outperforms 78.79% of its industry peers.
TOI has a Return On Equity of 30.47%. This is amongst the best in the industry. TOI outperforms 93.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.61%, TOI belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TOI is in line with the industry average of 11.84%.
The last Return On Invested Capital (14.61%) for TOI is above the 3 year average (12.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.56% | ||
| ROE | 30.47% | ||
| ROIC | 14.61% |
ROA(3y)-58.04%
ROA(5y)-31.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.65%
ROIC(5y)13.6%
1.3 Margins
Looking at the Profit Margin, with a value of 6.76%, TOI is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
TOI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 15.15%, TOI belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
TOI's Operating Margin has declined in the last couple of years.
TOI's Gross Margin of 91.04% is amongst the best of the industry. TOI outperforms 93.94% of its industry peers.
TOI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.15% | ||
| PM (TTM) | 6.76% | ||
| GM | 91.04% |
OM growth 3Y-7.4%
OM growth 5YN/A
PM growth 3Y-20.91%
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOI is still creating some value.
TOI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.00 indicates that TOI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.00, TOI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of TOI is 1.29, which is an excellent value as it means it would take TOI, only 1.29 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.29, TOI belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
TOI has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.40, TOI is doing worse than 68.18% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for TOI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 1.29 | ||
| Altman-Z | 5 |
ROIC/WACC1.15
WACC12.68%
2.3 Liquidity
TOI has a Current Ratio of 0.62. This is a bad value and indicates that TOI is not financially healthy enough and could expect problems in meeting its short term obligations.
TOI has a Current ratio of 0.62. This is in the lower half of the industry: TOI underperforms 66.67% of its industry peers.
TOI has a Quick Ratio of 0.62. This is a bad value and indicates that TOI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.61, TOI is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.91% over the past year.
The earnings per share for TOI have been decreasing by -20.09% on average. This is quite bad
Looking at the last year, TOI shows a quite strong growth in Revenue. The Revenue has grown by 14.88% in the last year.
The Revenue has been growing by 31.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.91%
EPS 3Y-20.09%
EPS 5YN/A
EPS Q2Q%101.66%
Revenue 1Y (TTM)14.88%
Revenue growth 3Y31.57%
Revenue growth 5YN/A
Sales Q2Q%10.34%
3.2 Future
Based on estimates for the next years, TOI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.25% on average per year.
The Revenue is expected to grow by 14.10% on average over the next years. This is quite good.
EPS Next Y17.89%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.63%
Revenue Next 2Y14.1%
Revenue Next 3YN/A
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 90.78, which means the current valuation is very expensive for TOI.
TOI's Price/Earnings ratio is a bit cheaper when compared to the industry. TOI is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.39. TOI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 52.67, the valuation of TOI can be described as expensive.
Based on the Price/Forward Earnings ratio, TOI is valued a bit cheaper than 74.24% of the companies in the same industry.
TOI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 94.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.78 | ||
| Fwd PE | 52.67 |
4.2 Price Multiples
TOI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TOI is cheaper than 65.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TOI is valued a bit cheaper than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.1 | ||
| EV/EBITDA | 21.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TOI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TOI's earnings are expected to grow with 18.25% in the coming years.
PEG (NY)5.08
PEG (5Y)N/A
EPS Next 2Y18.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, TOI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.75, TOI pays a better dividend. On top of this TOI pays more dividend than 93.94% of the companies listed in the same industry.
TOI's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
TOI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
152.42% of the earnings are spent on dividend by TOI. This is not a sustainable payout ratio.
DP152.42%
EPS Next 2Y18.25%
EPS Next 3YN/A
TOPICUS.COM INC-SUB VOTING
TSX-V:TOI (2/11/2025, 7:00:00 PM)
137.99
-3.27 (-2.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners19.59%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap11.46B
Analysts40
Price Target128.52 (-6.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP152.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.27%
Min EPS beat(2)-43.37%
Max EPS beat(2)-23.18%
EPS beat(4)0
Avg EPS beat(4)-27.53%
Min EPS beat(4)-43.37%
Max EPS beat(4)-2.91%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.41%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-2.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.78 | ||
| Fwd PE | 52.67 | ||
| P/S | 6.25 | ||
| P/FCF | 24.1 | ||
| P/OCF | 23.46 | ||
| P/B | 28.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.76 |
EPS(TTM)1.52
EY1.1%
EPS(NY)2.62
Fwd EY1.9%
FCF(TTM)5.72
FCFY4.15%
OCF(TTM)5.88
OCFY4.26%
SpS22.07
BVpS4.89
TBVpS-11.62
PEG (NY)5.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.56% | ||
| ROE | 30.47% | ||
| ROCE | 24.59% | ||
| ROIC | 14.61% | ||
| ROICexc | 18.81% | ||
| ROICexgc | N/A | ||
| OM | 15.15% | ||
| PM (TTM) | 6.76% | ||
| GM | 91.04% | ||
| FCFM | 25.94% |
ROA(3y)-58.04%
ROA(5y)-31.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.65%
ROIC(5y)13.6%
ROICexc(3y)14.86%
ROICexc(5y)15.61%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.59%
ROCE(5y)18.54%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-5.92%
ROICexc growth 5YN/A
OM growth 3Y-7.4%
OM growth 5YN/A
PM growth 3Y-20.91%
PM growth 5YN/A
GM growth 3Y0.34%
GM growth 5YN/A
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 1.29 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 5.44% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 8.65 | ||
| Cash Conversion | 94.08% | ||
| Profit Quality | 383.97% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 5 |
F-Score6
WACC12.68%
ROIC/WACC1.15
Cap/Depr(3y)5.15%
Cap/Depr(5y)4.62%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.91%
EPS 3Y-20.09%
EPS 5YN/A
EPS Q2Q%101.66%
EPS Next Y17.89%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.88%
Revenue growth 3Y31.57%
Revenue growth 5YN/A
Sales Q2Q%10.34%
Revenue Next Year13.63%
Revenue Next 2Y14.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.7%
EBIT growth 3Y21.83%
EBIT growth 5YN/A
EBIT Next Year129.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.62%
FCF growth 3Y16.9%
FCF growth 5YN/A
OCF growth 1Y67.15%
OCF growth 3Y17.53%
OCF growth 5YN/A