TECSYS INC (TCS.CA) Fundamental Analysis & Valuation
TSX:TCS • CA8789501043
Current stock price
35.88 CAD
+1.07 (+3.07%)
Last:
This TCS.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TCS.CA Profitability Analysis
1.1 Basic Checks
- In the past year TCS was profitable.
- In the past year TCS had a positive cash flow from operations.
- In the past 5 years TCS has always been profitable.
- Each year in the past 5 years TCS had a positive operating cash flow.
1.2 Ratios
- TCS's Return On Assets of 4.18% is fine compared to the rest of the industry. TCS outperforms 73.91% of its industry peers.
- TCS has a Return On Equity of 8.66%. This is in the better half of the industry: TCS outperforms 73.91% of its industry peers.
- TCS's Return On Invested Capital of 9.41% is fine compared to the rest of the industry. TCS outperforms 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROIC | 9.41% |
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 3.15%, TCS is in the better half of the industry, outperforming 68.12% 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 (5.48%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of TCS has declined.
- TCS has a Gross Margin (51.34%) which is in line with 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 | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% |
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. TCS.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCS is destroying value.
- Compared to 1 year ago, TCS has about the same amount of shares outstanding.
- The number of shares outstanding for TCS has been increased compared to 5 years ago.
- The debt/assets ratio for TCS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.97 indicates that TCS is not in any danger for bankruptcy at the moment.
- TCS has a Altman-Z score of 5.97. This is amongst the best in the industry. TCS outperforms 84.06% of its industry peers.
- The Debt to FCF ratio of TCS is 0.33, which is an excellent value as it means it would take TCS, only 0.33 years of fcf income to pay off all of its debts.
- TCS has a better Debt to FCF ratio (0.33) than 86.96% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that TCS is not too dependend on debt financing.
- TCS has a better Debt to Equity ratio (0.07) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.95
WACC9.95%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that TCS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, TCS is in line with its industry, outperforming 53.62% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that TCS should not have too much problems paying its short term obligations.
- TCS's Quick ratio of 1.11 is in line compared to the rest of the industry. TCS outperforms 50.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 |
3. TCS.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 100.00% 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 9.09%.
- The Revenue has been growing by 10.96% on average over the past years. This is quite good.
EPS 1Y (TTM)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
3.2 Future
- The Earnings Per Share is expected to grow by 55.52% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
EPS Next Y25.21%
EPS Next 2Y51.51%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y10.15%
Revenue Next 3Y8.64%
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.
- 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. TCS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 89.70, the valuation of TCS can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 63.77% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.64. TCS is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 53.90, the valuation of TCS can be described as expensive.
- Based on the Price/Forward Earnings ratio, TCS is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
- TCS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.7 | ||
| Fwd PE | 53.9 |
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 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.6 | ||
| EV/EBITDA | 34.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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)3.56
PEG (5Y)8.96
EPS Next 2Y51.51%
EPS Next 3Y55.52%
5. TCS.CA Dividend Analysis
5.1 Amount
- TCS has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.47, TCS pays a better dividend. On top of this TCS pays more dividend than 91.30% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
- On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
- TCS has paid a dividend for at least 10 years, which is a reliable track record.
- TCS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.65%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 85.42% 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.
DP85.42%
EPS Next 2Y51.51%
EPS Next 3Y55.52%
TCS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:TCS (4/30/2026, 7:00:00 PM)
35.88
+1.07 (+3.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength28.35
Industry Growth56.72
Earnings (Last)03-04 2026-03-04/amc
Earnings (Next)06-24 2026-06-24
Inst Owners40.86%
Inst Owner ChangeN/A
Ins Owners15.8%
Ins Owner ChangeN/A
Market Cap519.18M
Revenue(TTM)189.65M
Net Income(TTM)5.97M
Analysts75.56
Price Target38.25 (6.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP85.42%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-25 2026-03-25 (0.09)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.75%
Min EPS beat(2)37.09%
Max EPS beat(2)58.42%
EPS beat(4)2
Avg EPS beat(4)5.03%
Min EPS beat(4)-50.49%
Max EPS beat(4)58.42%
EPS beat(8)2
Avg EPS beat(8)-21.77%
EPS beat(12)4
Avg EPS beat(12)-22.26%
EPS beat(16)6
Avg EPS beat(16)-9.21%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)1.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)-0.41%
PT rev (1m)-13.79%
PT rev (3m)-15.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)-14.75%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.7 | ||
| Fwd PE | 53.9 | ||
| P/S | 2.74 | ||
| P/FCF | 32.6 | ||
| P/OCF | 25.87 | ||
| P/B | 7.53 | ||
| P/tB | 12.07 | ||
| EV/EBITDA | 34.73 |
EPS(TTM)0.4
EY1.11%
EPS(NY)0.67
Fwd EY1.86%
FCF(TTM)1.1
FCFY3.07%
OCF(TTM)1.39
OCFY3.87%
SpS13.11
BVpS4.77
TBVpS2.97
PEG (NY)3.56
PEG (5Y)8.96
Graham Number6.54973 (-81.75%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 8.66% | ||
| ROCE | 14.02% | ||
| ROIC | 9.41% | ||
| ROICexc | 18.42% | ||
| ROICexgc | 58.66% | ||
| OM | 5.48% | ||
| PM (TTM) | 3.15% | ||
| GM | 51.34% | ||
| FCFM | 8.4% |
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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 124.44% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 266.26 | ||
| Cash Conversion | 146.34% | ||
| Profit Quality | 266.66% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 5.97 |
F-Score6
WACC9.95%
ROIC/WACC0.95
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)100%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%50%
EPS Next Y25.21%
EPS Next 2Y51.51%
EPS Next 3Y55.52%
EPS Next 5YN/A
Revenue 1Y (TTM)9.09%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%7.34%
Revenue Next Year10.59%
Revenue Next 2Y10.15%
Revenue Next 3Y8.64%
Revenue Next 5YN/A
EBIT growth 1Y87%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year143.66%
EBIT Next 3Y70.55%
EBIT Next 5YN/A
FCF growth 1Y66.41%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y93.63%
OCF growth 3Y41.17%
OCF growth 5Y6.8%
TECSYS INC / TCS.CA Fundamental Analysis 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 for TCS stock?
ChartMill assigns a valuation rating of 4 / 10 to TECSYS INC (TCS.CA). This can be considered as Fairly Valued.
What is the profitability of TCS stock?
TECSYS INC (TCS.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TECSYS INC (TCS.CA) stock?
The Price/Earnings (PE) ratio for TECSYS INC (TCS.CA) is 89.7 and the Price/Book (PB) ratio is 7.53.
What is the earnings growth outlook for TECSYS INC?
The Earnings per Share (EPS) of TECSYS INC (TCS.CA) is expected to grow by 25.21% in the next year.