TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
28.06 CAD
-0.86 (-2.97%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 68 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TCS had positive earnings in the past year.
- In the past year TCS had a positive cash flow from operations.
- 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
- TCS's Return On Assets of 4.06% is fine compared to the rest of the industry. TCS outperforms 72.06% of its industry peers.
- Looking at the Return On Equity, with a value of 7.97%, TCS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.91%, TCS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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
- Looking at the Profit Margin, with a value of 2.91%, TCS is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- TCS's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 4.94%, TCS is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
- TCS's Operating Margin has declined in the last couple of years.
- The Gross Margin of TCS (50.47%) 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCS is destroying value.
- Compared to 1 year ago, TCS has about the same amount of shares outstanding.
- TCS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TCS has an improved debt to assets ratio.
2.2 Solvency
- TCS has an Altman-Z score of 5.64. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
- TCS has a Altman-Z score of 5.64. This is in the better half of the industry: TCS outperforms 79.41% of its industry peers.
- The Debt to FCF ratio of TCS is 0.04, which is an excellent value as it means it would take TCS, only 0.04 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.04, TCS belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
- TCS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.00, TCS belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.64 |
ROIC/WACC0.87
WACC10.26%
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.
- The Current ratio of TCS (1.25) is comparable to the rest of the industry.
- 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 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 111.76% over the past year.
- TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
- Looking at the last year, TCS shows a quite strong growth in Revenue. The Revenue has grown by 8.02% in the last year.
- TCS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.96% yearly.
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
- TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.82% yearly.
- TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
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 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
- With a Price/Earnings ratio of 77.94, TCS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TCS is valued a bit cheaper than 64.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TCS to the average of the S&P500 Index (27.38), we can say TCS is valued expensively.
- A Price/Forward Earnings ratio of 40.59 indicates a quite expensive valuation of TCS.
- 63.24% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
- TCS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.94 | ||
| Fwd PE | 40.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TCS is valued a bit cheaper than the industry average as 60.29% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.37 | ||
| EV/EBITDA | 30.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 54.82% in the coming years.
PEG (NY)2.71
PEG (5Y)7.79
EPS Next 2Y54.39%
EPS Next 3Y54.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.24%, TCS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.22, TCS pays a better dividend. On top of this TCS pays more dividend than 97.06% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.85, TCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 2Y54.39%
EPS Next 3Y54.82%
TSX:TCS (1/16/2026, 7:00:00 PM)
28.06
-0.86 (-2.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-03 2026-03-03
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap413.88M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts75.56
Price Target45.49 (62.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP92.6%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)-2.34%
PT rev (3m)-7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)0.83%
EPS NY rev (3m)-15.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.94 | ||
| Fwd PE | 40.59 | ||
| P/S | 2.22 | ||
| P/FCF | 36.37 | ||
| P/OCF | 27.89 | ||
| P/B | 6.07 | ||
| P/tB | 9.93 | ||
| EV/EBITDA | 30.21 |
EPS(TTM)0.36
EY1.28%
EPS(NY)0.69
Fwd EY2.46%
FCF(TTM)0.77
FCFY2.75%
OCF(TTM)1.01
OCFY3.59%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)2.71
PEG (5Y)7.79
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 | 5.64 |
F-Score8
WACC10.26%
ROIC/WACC0.87
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 Y28.76%
EPS Next 2Y54.39%
EPS Next 3Y54.82%
EPS Next 5YN/A
Revenue 1Y (TTM)8.02%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%14.61%
Revenue Next Year8.43%
Revenue Next 2Y9.5%
Revenue Next 3Y6.81%
Revenue Next 5YN/A
EBIT growth 1Y93.35%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year123.2%
EBIT Next 3Y65.06%
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.
What is the valuation status of TECSYS INC (TCS.CA) stock?
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.
How financially healthy is TECSYS INC?
The financial health rating of TECSYS INC (TCS.CA) is 7 / 10.
What is the expected EPS growth for TECSYS INC (TCS.CA) stock?
The Earnings per Share (EPS) of TECSYS INC (TCS.CA) is expected to grow by 28.76% in the next year.