TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - TSX:TCS - CA8789501043 - Common Stock
34.77 CAD
+0.14 (+0.4%)
Taking everything into account, TCS scores 6 out of 10 in our fundamental rating. TCS was compared to 63 industry peers in the Software industry. While TCS has a great health rating, its profitability is only average at the moment. TCS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make TCS a good candidate for growth investing.
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.
TCS had positive earnings in each of the past 5 years.
TCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TCS has a better Return On Assets (3.37%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 6.29%, TCS is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
The Return On Invested Capital of TCS (7.08%) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROIC | 7.08% |
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
The Profit Margin of TCS (2.46%) is better than 68.25% of its industry peers.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS has a better Operating Margin (4.15%) 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 (49.48%) which is comparable to the rest of the industry.
TCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% |
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
TCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TCS has about the same amout of shares outstanding than it did 1 year ago.
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 6.86 indicates that TCS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TCS (6.86) is better than 87.30% of its industry peers.
The Debt to FCF ratio of TCS is 0.05, which is an excellent value as it means it would take TCS, only 0.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCS (0.05) is better than 95.24% 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.
With an excellent Debt to Equity ratio value of 0.00, TCS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.86 |
ROIC/WACC0.69
WACC10.19%
2.3 Liquidity
TCS has a Current Ratio of 1.30. 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 Current ratio of 1.30 is in line compared to the rest of the industry. TCS outperforms 53.97% of its industry peers.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
The Quick ratio of TCS (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.00% over the past year.
The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
Looking at the last year, TCS shows a small growth in Revenue. The Revenue has grown by 5.01% in the last year.
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)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
3.2 Future
The Earnings Per Share is expected to grow by 76.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
EPS Next 5YN/A
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y10.04%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 119.90, TCS can be considered very expensive at the moment.
65.08% of the companies in the same industry are more expensive than TCS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.56, TCS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 43.30, the valuation of TCS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. TCS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.9 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
TCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCS is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.85 | ||
| EV/EBITDA | 45.12 |
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 76.79% in the coming years.
PEG (NY)2.53
PEG (5Y)11.98
EPS Next 2Y66.4%
EPS Next 3Y76.79%
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 1.60, TCS pays a better dividend. On top of this TCS pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of TCS grows each year by 10.65%, which is quite nice.
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
110.33% 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.
DP110.33%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
TSX:TCS (11/17/2025, 7:00:00 PM)
34.77
+0.14 (+0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners23.52%
Inst Owner ChangeN/A
Ins Owners15.83%
Ins Owner ChangeN/A
Market Cap514.25M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.78 (43.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP110.33%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.69%
Min EPS beat(2)-50.49%
Max EPS beat(2)-24.89%
EPS beat(4)0
Avg EPS beat(4)-39.33%
Min EPS beat(4)-53.95%
Max EPS beat(4)-24.89%
EPS beat(8)1
Avg EPS beat(8)-51.64%
EPS beat(12)4
Avg EPS beat(12)-4.95%
EPS beat(16)4
Avg EPS beat(16)-19.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)0.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)3
Avg Revenue beat(8)-2.5%
Revenue beat(12)7
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.51%
PT rev (1m)1.24%
PT rev (3m)1.24%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-40.88%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.9 | ||
| Fwd PE | 43.3 | ||
| P/S | 2.85 | ||
| P/FCF | 42.85 | ||
| P/OCF | 33.92 | ||
| P/B | 7.31 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 45.12 |
EPS(TTM)0.29
EY0.83%
EPS(NY)0.8
Fwd EY2.31%
FCF(TTM)0.81
FCFY2.33%
OCF(TTM)1.03
OCFY2.95%
SpS12.18
BVpS4.75
TBVpS2.95
PEG (NY)2.53
PEG (5Y)11.98
Graham Number5.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 6.29% | ||
| ROCE | 10.55% | ||
| ROIC | 7.08% | ||
| ROICexc | 12.58% | ||
| ROICexgc | 38.16% | ||
| OM | 4.15% | ||
| PM (TTM) | 2.46% | ||
| GM | 49.48% | ||
| FCFM | 6.66% |
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-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 107.33% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 118.67 | ||
| Cash Conversion | 145.49% | ||
| Profit Quality | 271.31% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.86 |
F-Score7
WACC10.19%
ROIC/WACC0.69
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)190%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%0%
EPS Next Y47.44%
EPS Next 2Y66.4%
EPS Next 3Y76.79%
EPS Next 5YN/A
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%8.71%
Revenue Next Year9.3%
Revenue Next 2Y10.27%
Revenue Next 3Y10.04%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year126.48%
EBIT Next 3Y76.57%
EBIT Next 5YN/A
FCF growth 1Y142.38%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y156.75%
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.
Can you provide the valuation status for TECSYS INC?
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.
Can you provide the PE and PB ratios for TCS stock?
The Price/Earnings (PE) ratio for TECSYS INC (TCS.CA) is 119.9 and the Price/Book (PB) ratio is 7.31.
Can you provide the dividend sustainability for TCS stock?
The dividend rating of TECSYS INC (TCS.CA) is 5 / 10 and the dividend payout ratio is 110.33%.