TECSYS INC (TCS.CA) Stock Fundamental Analysis
TSX:TCS - Toronto Stock Exchange - CA8789501043 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to TCS. TCS was compared to 61 industry peers in the Software industry. Both the profitability and the financial health of TCS get a neutral evaluation. Nothing too spectacular is happening here. TCS is not valued too expensively and it also shows a decent 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.
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
TCS's Return On Assets of 2.33% is fine compared to the rest of the industry. TCS outperforms 62.30% of its industry peers.
Looking at the Return On Equity, with a value of 5.01%, TCS is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
TCS has a better Return On Invested Capital (5.55%) than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.01% | ||
| ROIC | 5.55% |
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 (1.73%) which is in line with its industry peers.
TCS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 3.19%, TCS is doing good in the industry, outperforming 63.93% of the companies in the same industry.
TCS's Operating Margin has declined in the last couple of years.
The Gross Margin of TCS (47.20%) is comparable to the rest of the industry.
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 | 3.19% | ||
| PM (TTM) | 1.73% | ||
| GM | 47.2% |
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
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 5 years ago, TCS has more shares outstanding
2.2 Solvency
An Altman-Z score of 6.91 indicates that TCS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TCS (6.91) is better than 80.33% of its industry peers.
The Debt to FCF ratio of TCS is 0.13, which is an excellent value as it means it would take TCS, only 0.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCS (0.13) is better than 90.16% of its industry peers.
TCS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.01, TCS is doing good in the industry, outperforming 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 6.91 |
ROIC/WACC0.71
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.22 indicates that TCS should not have too much problems paying its short term obligations.
The Current ratio of TCS (1.22) is comparable to the rest of the industry.
TCS has a Quick Ratio of 1.08. This is a normal value and indicates that TCS is financially healthy and should not expect problems in meeting its short term obligations.
TCS's Quick ratio of 1.08 is in line compared to the rest of the industry. TCS outperforms 45.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.86% over the past year.
Measured over the past years, TCS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -35.30% on average per year.
TCS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
The Revenue has been growing by 17.52% on average over the past years. This is quite good.
EPS 1Y (TTM)42.86%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%60%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%3.1%
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 111.67% on average per year.
TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.89% yearly.
EPS Next Y157.94%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y6.93%
Revenue Next 3Y7.89%
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
Based on the Price/Earnings ratio of 203.00, the valuation of TCS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TCS.
When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (26.91), we can say TCS is valued expensively.
The Price/Forward Earnings ratio is 56.14, which means the current valuation is very expensive for TCS.
Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than 65.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.46. TCS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 203 | ||
| Fwd PE | 56.14 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.99 | ||
| EV/EBITDA | 66.93 |
4.3 Compensation for Growth
TCS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TCS's earnings are expected to grow with 111.67% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y135.86%
EPS Next 3Y111.67%
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.83%, which is pretty low.
TCS's Dividend Yield is rather good when compared to the industry average which is at 1.72. TCS pays more dividend than 95.08% of the companies in the same industry.
With a Dividend Yield of 0.83, TCS pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
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)N/A
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
159.38% of the earnings are spent on dividend by TCS. This is not a sustainable payout ratio.
DP159.38%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
TSX:TCS (6/24/2025, 7:00:00 PM)
40.6
-0.51 (-1.24%)
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 Cap602.50M
Analysts80
Price Target50.39 (24.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP159.38%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.97%
Min EPS beat(2)-53.95%
Max EPS beat(2)-27.99%
EPS beat(4)0
Avg EPS beat(4)-48.57%
Min EPS beat(4)-65.86%
Max EPS beat(4)-27.99%
EPS beat(8)2
Avg EPS beat(8)-35.91%
EPS beat(12)4
Avg EPS beat(12)-13.96%
EPS beat(16)4
Avg EPS beat(16)-18.99%
Revenue beat(2)1
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)1.9%
Revenue beat(4)1
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 203 | ||
| Fwd PE | 56.14 | ||
| P/S | 3.47 | ||
| P/FCF | 52.99 | ||
| P/OCF | 50.16 | ||
| P/B | 10.04 | ||
| P/tB | 16.9 | ||
| EV/EBITDA | 66.93 |
EPS(TTM)0.2
EY0.49%
EPS(NY)0.72
Fwd EY1.78%
FCF(TTM)0.77
FCFY1.89%
OCF(TTM)0.81
OCFY1.99%
SpS11.72
BVpS4.04
TBVpS2.4
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.01% | ||
| ROCE | 8.51% | ||
| ROIC | 5.55% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 43.68% | ||
| OM | 3.19% | ||
| PM (TTM) | 1.73% | ||
| GM | 47.2% | ||
| FCFM | 6.54% |
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-56.87%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.53%
ROICexc growth 5YN/A
OM growth 3Y-35.17%
OM growth 5YN/A
PM growth 3Y-43.06%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-1.33%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 22.76% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 59.02 | ||
| Cash Conversion | 143.6% | ||
| Profit Quality | 377.99% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 6.91 |
F-Score8
WACC7.87%
ROIC/WACC0.71
Cap/Depr(3y)24.45%
Cap/Depr(5y)29.02%
Cap/Sales(3y)0.56%
Cap/Sales(5y)0.8%
Profit Quality(3y)215.45%
Profit Quality(5y)255.32%
High Growth Momentum
Growth
EPS 1Y (TTM)42.86%
EPS 3Y-35.3%
EPS 5YN/A
EPS Q2Q%60%
EPS Next Y157.94%
EPS Next 2Y135.86%
EPS Next 3Y111.67%
EPS Next 5YN/A
Revenue 1Y (TTM)3.19%
Revenue growth 3Y11.63%
Revenue growth 5Y17.52%
Sales Q2Q%3.1%
Revenue Next Year2.16%
Revenue Next 2Y6.93%
Revenue Next 3Y7.89%
Revenue Next 5YN/A
EBIT growth 1Y39.85%
EBIT growth 3Y-27.63%
EBIT growth 5YN/A
EBIT Next Year42.51%
EBIT Next 3Y45.46%
EBIT Next 5YN/A
FCF growth 1Y136.38%
FCF growth 3Y-37.68%
FCF growth 5Y3.75%
OCF growth 1Y109.91%
OCF growth 3Y-36.67%
OCF growth 5Y3.44%