TECSYS INC (TCS.CA) Stock Fundamental Analysis
Canada - TSX:TCS - CA8789501043 - Common Stock
34.4 CAD
-0.71 (-2.02%)
Overall TCS gets a fundamental rating of 6 out of 10. We evaluated TCS against 63 industry peers in the Software industry. TCS has an excellent financial health rating, but there are some minor concerns on its profitability. TCS is growing strongly while it is still valued neutral. This is a good combination! These ratings could make TCS a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year TCS was profitable.
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
TCS has a better Return On Assets (3.37%) than 68.25% 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.
Looking at the Return On Invested Capital, with a value of 7.08%, TCS is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
| 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
TCS's Profit Margin of 2.46% is fine compared to the rest of the industry. TCS outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of TCS has grown nicely.
With a decent Operating Margin value of 4.15%, TCS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TCS's Operating Margin has declined in the last couple of years.
TCS's Gross Margin of 49.48% is in line compared to the rest of the industry. TCS outperforms 55.56% of its industry peers.
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.
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.
TCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.82 indicates that TCS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.82, TCS is doing good in the industry, outperforming 79.37% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.05, TCS belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that TCS is not too dependend on debt financing.
The Debt to Equity ratio of TCS (0.00) is better than 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.82 |
ROIC/WACC0.7
WACC10.05%
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.
With a Current ratio value of 1.30, TCS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Quick ratio (1.17) which is in line with its industry peers.
| 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.
TCS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
The Revenue has been growing slightly by 5.01% in the past year.
The Revenue has been growing by 10.96% on average over the past years. This is quite good.
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
Based on estimates for the next years, TCS will show a very strong growth in Earnings Per Share. The EPS will grow by 76.79% on average per year.
Based on estimates for the next years, TCS will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
EPS Next Y49.97%
EPS Next 2Y79.13%
EPS Next 3Y76.79%
EPS Next 5YN/A
Revenue Next Year6.92%
Revenue Next 2Y9.07%
Revenue Next 3Y9.18%
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
Based on the Price/Earnings ratio of 118.62, the valuation of TCS can be described as expensive.
Based on the Price/Earnings ratio, TCS is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
TCS is valuated expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.97 indicates a quite expensive valuation of TCS.
61.90% of the companies in the same industry are more expensive than TCS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCS to the average of the S&P500 Index (33.61), we can say TCS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.62 | ||
| Fwd PE | 36.97 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA ratio is in line with the industry average.
65.08% of the companies in the same industry are more expensive than TCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.4 | ||
| EV/EBITDA | 44.78 |
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.
TCS has a very decent profitability rating, which may justify a higher PE ratio.
TCS's earnings are expected to grow with 76.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.37
PEG (5Y)11.85
EPS Next 2Y79.13%
EPS Next 3Y76.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, TCS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.51, TCS pays a better dividend. On top of this TCS pays more dividend than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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.
As TCS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y79.13%
EPS Next 3Y76.79%
TSX:TCS (11/10/2025, 7:00:00 PM)
34.4
-0.71 (-2.02%)
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 Cap508.78M
Revenue(TTM)180.14M
Net Income(TTM)4.42M
Analysts80
Price Target49.78 (44.71%)
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)-1.58%
EPS NY rev (3m)-39.86%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.62 | ||
| Fwd PE | 36.97 | ||
| P/S | 2.82 | ||
| P/FCF | 42.4 | ||
| P/OCF | 33.56 | ||
| P/B | 7.24 | ||
| P/tB | 11.67 | ||
| EV/EBITDA | 44.78 |
EPS(TTM)0.29
EY0.84%
EPS(NY)0.93
Fwd EY2.7%
FCF(TTM)0.81
FCFY2.36%
OCF(TTM)1.03
OCFY2.98%
SpS12.18
BVpS4.75
TBVpS2.95
PEG (NY)2.37
PEG (5Y)11.85
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 | 6.82 |
F-Score7
WACC10.05%
ROIC/WACC0.7
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 Y49.97%
EPS Next 2Y79.13%
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 Year6.92%
Revenue Next 2Y9.07%
Revenue Next 3Y9.18%
Revenue Next 5YN/A
EBIT growth 1Y121.91%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year126.73%
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 118.62 and the Price/Book (PB) ratio is 7.24.
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%.