TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCS - CA8789501043 - Common Stock
30.48 CAD
+0.44 (+1.46%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 64 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. 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.
TCS had a positive operating cash flow in the past year.
Each year in the past 5 years TCS has been profitable.
In the past 5 years TCS always reported a positive cash flow from operatings.
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 78.13% 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 79.69% of the companies in the same industry.
TCS has a Return On Invested Capital of 8.91%. This is in the better half of the industry: TCS outperforms 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
Looking at the Profit Margin, with a value of 2.91%, TCS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
TCS's Profit Margin has improved in the last couple of years.
TCS has a better Operating Margin (4.94%) than 71.88% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
TCS has a better Gross Margin (50.47%) than 60.94% of its industry peers.
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.
The number of shares outstanding for TCS remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 5.96 indicates that TCS is not in any danger for 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.
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.
TCS has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. TCS outperforms 95.31% of its industry peers.
TCS has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TCS (0.00) is better than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.9
WACC9.94%
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.
Looking at the Current ratio, with a value of 1.25, TCS is in line with its industry, outperforming 54.69% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Quick ratio (1.13) which is comparable to the rest of the 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.
TCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.02%.
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
TCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.52% yearly.
TCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 84.67, TCS can be considered very expensive at the moment.
TCS's Price/Earnings ratio is a bit cheaper when compared to the industry. TCS is cheaper than 70.31% of the companies in the same industry.
TCS is valuated expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 44.38 indicates a quite expensive valuation of TCS.
67.19% 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 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.67 | ||
| Fwd PE | 44.38 |
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 the industry average as 70.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.51 | ||
| EV/EBITDA | 33.11 |
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.
The decent profitability rating of TCS 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)3.06
PEG (5Y)8.46
EPS Next 2Y53.89%
EPS Next 3Y55.52%
5. Dividend
5.1 Amount
TCS has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
TCS's Dividend Yield is rather good when compared to the industry average which is at 0.20. TCS pays more dividend than 96.88% of the companies in the same industry.
TCS's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
The dividend of TCS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP92.6%
EPS Next 2Y53.89%
EPS Next 3Y55.52%
TSX:TCS (1/8/2026, 7:00:00 PM)
30.48
+0.44 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners15.7%
Ins Owner ChangeN/A
Market Cap449.58M
Revenue(TTM)186.34M
Net Income(TTM)5.43M
Analysts80
Price Target45.49 (49.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)-8.04%
PT rev (3m)-7.47%
EPS NQ rev (1m)-36%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)-13.38%
EPS NY rev (3m)-16.19%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.67 | ||
| Fwd PE | 44.38 | ||
| P/S | 2.41 | ||
| P/FCF | 39.51 | ||
| P/OCF | 30.3 | ||
| P/B | 6.6 | ||
| P/tB | 10.79 | ||
| EV/EBITDA | 33.11 |
EPS(TTM)0.36
EY1.18%
EPS(NY)0.69
Fwd EY2.25%
FCF(TTM)0.77
FCFY2.53%
OCF(TTM)1.01
OCFY3.3%
SpS12.63
BVpS4.62
TBVpS2.82
PEG (NY)3.06
PEG (5Y)8.46
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
WACC9.94%
ROIC/WACC0.9
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.
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 27.7% in the next year.