TECSYS INC (TCS.CA) Stock Fundamental Analysis
TSX:TCS - CA8789501043 - Common Stock
34.5 CAD
-0.8 (-2.27%)
We assign a fundamental rating of 6 out of 10 to TCS. TCS was compared to 63 industry peers in the Software industry. Both the profitability and the financial health of TCS get a neutral evaluation. Nothing too spectacular is happening here. TCS is growing strongly while it is still valued neutral. This is a good combination! With these ratings, TCS could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year TCS was profitable.
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 Return On Assets of 3.18%. This is in the better half of the industry: TCS outperforms 66.67% of its industry peers.
TCS's Return On Equity of 6.26% is fine compared to the rest of the industry. TCS outperforms 71.43% of its industry peers.
TCS has a better Return On Invested Capital (6.66%) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.26% | ||
| ROIC | 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
1.3 Margins
With a decent Profit Margin value of 2.53%, TCS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of TCS has grown nicely.
TCS's Operating Margin of 4.07% is fine compared to the rest of the industry. TCS outperforms 68.25% of its industry peers.
TCS's Operating Margin has declined in the last couple of years.
TCS's Gross Margin of 48.34% is in line compared to the rest of the industry. TCS outperforms 55.56% 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 | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 48.34% |
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. 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.
The debt/assets ratio for TCS has been reduced compared to a year ago.
2.2 Solvency
TCS has an Altman-Z score of 6.13. This indicates that TCS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.13, TCS is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of TCS is 0.10, which is an excellent value as it means it would take TCS, only 0.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.10, TCS belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
TCS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TCS (0.01) is better than 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 6.13 |
ROIC/WACC0.63
WACC10.49%
2.3 Liquidity
A Current Ratio of 1.32 indicates that TCS should not have too much problems paying its short term obligations.
TCS has a Current ratio (1.32) which is in line with its industry peers.
A Quick Ratio of 1.19 indicates that TCS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, TCS perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 123.08% over the past year.
Measured over the past years, TCS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.01% on average per year.
The Revenue has been growing slightly by 3.04% in the past 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)123.08%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%450%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%5.92%
3.2 Future
The Earnings Per Share is expected to grow by 106.19% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.88% on average over the next years. This is quite good.
EPS Next Y90.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.79%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
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 118.97, 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 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, TCS is valued quite expensively.
The Price/Forward Earnings ratio is 62.48, which means the current valuation is very expensive for TCS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCS indicates a somewhat cheap valuation: TCS is cheaper than 63.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, TCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.97 | ||
| Fwd PE | 62.48 |
4.2 Price Multiples
TCS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TCS is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.12 | ||
| EV/EBITDA | 46.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 106.19% in the coming years.
PEG (NY)1.32
PEG (5Y)11.89
EPS Next 2Y106.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TCS has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.42, TCS pays a better dividend. On top of this TCS pays more dividend than 96.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TCS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of TCS is nicely growing with an annual growth rate of 10.65%!
TCS has paid a dividend for at least 10 years, which is 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
109.39% 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.
DP109.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
TSX:TCS (9/5/2025, 7:00:00 PM)
34.5
-0.8 (-2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners33.26%
Inst Owner ChangeN/A
Ins Owners17.07%
Ins Owner ChangeN/A
Market Cap511.63M
Analysts80
Price Target49.16 (42.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.33
Dividend Growth(5Y)10.65%
DP109.39%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.44%
Min EPS beat(2)-27.99%
Max EPS beat(2)-24.89%
EPS beat(4)0
Avg EPS beat(4)-38.33%
Min EPS beat(4)-53.95%
Max EPS beat(4)-24.89%
EPS beat(8)2
Avg EPS beat(8)-33.07%
EPS beat(12)4
Avg EPS beat(12)-9.07%
EPS beat(16)4
Avg EPS beat(16)-20.48%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.52%
Max Revenue beat(2)1.9%
Revenue beat(4)2
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-1.79%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)0%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-23.65%
EPS NY rev (3m)-23.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 118.97 | ||
| Fwd PE | 62.48 | ||
| P/S | 2.9 | ||
| P/FCF | 39.12 | ||
| P/OCF | 36.79 | ||
| P/B | 7.18 | ||
| P/tB | 10.95 | ||
| EV/EBITDA | 46.38 |
EPS(TTM)0.29
EY0.84%
EPS(NY)0.55
Fwd EY1.6%
FCF(TTM)0.88
FCFY2.56%
OCF(TTM)0.94
OCFY2.72%
SpS11.9
BVpS4.81
TBVpS3.15
PEG (NY)1.32
PEG (5Y)11.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.26% | ||
| ROCE | 9.92% | ||
| ROIC | 6.66% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 56.17% | ||
| OM | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 48.34% | ||
| FCFM | 7.41% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-30.43%
ROICexcg 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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 29.82% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 87.6 | ||
| Cash Conversion | 139.64% | ||
| Profit Quality | 293.21% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 6.13 |
F-Score7
WACC10.49%
ROIC/WACC0.63
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)123.08%
EPS 3Y27.47%
EPS 5Y10.01%
EPS Q2Q%450%
EPS Next Y90.39%
EPS Next 2Y106.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y8.75%
Revenue growth 5Y10.96%
Sales Q2Q%5.92%
Revenue Next Year9.79%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y77.05%
EBIT growth 3Y10.13%
EBIT growth 5Y7.08%
EBIT Next Year187.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y207.33%
FCF growth 3Y48.98%
FCF growth 5Y8.05%
OCF growth 1Y186.47%
OCF growth 3Y41.17%
OCF growth 5Y6.8%