TOPICUS.COM INC-SUB VOTING (TOI.CA) Stock Fundamental Analysis
TSX-V:TOI - TSX Venture Exchange - CA89072T1021 - Common Stock - Currency: CAD
TOI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 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!
1. Profitability
1.1 Basic Checks
TOI had positive earnings in the past year.
TOI had a positive operating cash flow in the past year.
TOI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TOI had a positive operating cash flow.
1.2 Ratios
TOI's Return On Assets of 5.99% is fine compared to the rest of the industry. TOI outperforms 75.00% of its industry peers.
TOI has a better Return On Equity (29.55%) than 90.00% of its industry peers.
The Return On Invested Capital of TOI (15.79%) is better than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TOI is in line with the industry average of 13.09%.
The last Return On Invested Capital (15.79%) for TOI is above the 3 year average (13.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.55% | ||
| ROIC | 15.79% |
ROA(3y)5.03%
ROA(5y)-31.64%
ROE(3y)23.53%
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)13.96%
1.3 Margins
With a decent Profit Margin value of 7.10%, TOI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
TOI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.93%, TOI belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
TOI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 90.97%, TOI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Gross Margin of TOI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 7.1% | ||
| GM | 90.97% |
OM growth 3Y1.27%
OM growth 5Y1.03%
PM growth 3YN/A
PM growth 5Y-8.59%
GM growth 3Y0.4%
GM growth 5Y0.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOI is creating some value.
The number of shares outstanding for TOI has been increased compared to 1 year ago.
The number of shares outstanding for TOI has been increased compared to 5 years ago.
TOI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.40 indicates that TOI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.40, TOI belongs to the top of the industry, outperforming 81.67% of the companies in the same industry.
TOI has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
TOI has a better Debt to FCF ratio (1.04) than 78.33% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that TOI has dependencies on debt financing.
TOI's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. TOI is outperformed by 63.33% of its industry peers.
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 | 1.03 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.62
WACC9.75%
2.3 Liquidity
TOI has a Current Ratio of 0.65. 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 0.65. This is in the lower half of the industry: TOI underperforms 73.33% of its industry peers.
A Quick Ratio of 0.64 indicates that TOI may have some problems paying its short term obligations.
The Quick ratio of TOI (0.64) is worse than 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
TOI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
The Earnings Per Share has been decreasing by -9.90% on average over the past years.
Looking at the last year, TOI shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
TOI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.41% yearly.
EPS 1Y (TTM)28.3%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%32.27%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%19.87%
3.2 Future
The Earnings Per Share is expected to grow by 49.34% on average over the next years. This is a very strong growth
Based on estimates for the next years, TOI will show a quite strong growth in Revenue. The Revenue will grow by 17.75% on average per year.
EPS Next Y130.08%
EPS Next 2Y49.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.48%
Revenue Next 2Y17.75%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
TOI is valuated quite expensively with a Price/Earnings ratio of 88.97.
Based on the Price/Earnings ratio, TOI is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.79, TOI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 44.07, the valuation of TOI can be described as expensive.
TOI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOI is cheaper than 73.33% of the companies in the same industry.
TOI is valuated expensively when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.97 | ||
| Fwd PE | 44.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TOI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TOI is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.45 | ||
| EV/EBITDA | 21.88 |
4.3 Compensation for Growth
TOI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TOI has a very decent profitability rating, which may justify a higher PE ratio.
TOI's earnings are expected to grow with 49.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y49.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:TOI (4/24/2025, 7:00:00 PM)
157.47
+0.85 (+0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners19.53%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap13.08B
Analysts40
Price Target159.12 (1.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.44
Dividend Growth(5Y)N/A
DP138.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.83%
Min EPS beat(2)-23.18%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-26.92%
Min EPS beat(4)-43.37%
Max EPS beat(4)-0.47%
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)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)3.2%
Revenue beat(4)1
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)3.2%
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)23.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)27.91%
EPS NY rev (3m)22.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.97 | ||
| Fwd PE | 44.07 | ||
| P/S | 6.41 | ||
| P/FCF | 24.45 | ||
| P/OCF | 23.86 | ||
| P/B | 26.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.88 |
EPS(TTM)1.77
EY1.12%
EPS(NY)3.57
Fwd EY2.27%
FCF(TTM)6.44
FCFY4.09%
OCF(TTM)6.6
OCFY4.19%
SpS24.58
BVpS5.91
TBVpS-12.14
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 29.55% | ||
| ROCE | 24.68% | ||
| ROIC | 15.79% | ||
| ROICexc | 19.63% | ||
| ROICexgc | N/A | ||
| OM | 15.93% | ||
| PM (TTM) | 7.1% | ||
| GM | 90.97% | ||
| FCFM | 26.21% |
ROA(3y)5.03%
ROA(5y)-31.64%
ROE(3y)23.53%
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)13.96%
ROICexc(3y)16.09%
ROICexc(5y)16.51%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.8%
ROCE(5y)19.81%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y8.6%
ROICexc growth 5Y6.98%
OM growth 3Y1.27%
OM growth 5Y1.03%
PM growth 3YN/A
PM growth 5Y-8.59%
GM growth 3Y0.4%
GM growth 5Y0.29%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 1.04 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 4.88% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.9 | ||
| Cash Conversion | 92.49% | ||
| Profit Quality | 368.88% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 5.4 |
F-Score6
WACC9.75%
ROIC/WACC1.62
Cap/Depr(3y)5.14%
Cap/Depr(5y)4.76%
Cap/Sales(3y)0.71%
Cap/Sales(5y)0.67%
Profit Quality(3y)357.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%32.27%
EPS Next Y130.08%
EPS Next 2Y49.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%19.87%
Revenue Next Year22.48%
Revenue Next 2Y17.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.87%
EBIT growth 3Y21.89%
EBIT growth 5Y26.7%
EBIT Next Year136.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y42.12%
FCF growth 3Y25.66%
FCF growth 5Y23.36%
OCF growth 1Y40.99%
OCF growth 3Y25.37%
OCF growth 5Y23.43%