TOPICUS.COM INC-SUB VOTING (TOI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:TOI - CA89072T1021 - Common Stock
111.2 CAD
-4.99 (-4.29%)
Overall TOI gets a fundamental rating of 5 out of 10. We evaluated TOI against 68 industry peers in the Software industry. TOI has a medium profitability rating, but doesn't score so well on its financial health evaluation. TOI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year TOI was profitable.
- TOI had a positive operating cash flow in the past year.
- TOI had positive earnings in 4 of the past 5 years.
- In the past 5 years TOI always reported a positive cash flow from operatings.
1.2 Ratios
- TOI has a Return On Assets (0.25%) which is in line with its industry peers.
- TOI's Return On Equity of 1.41% is fine compared to the rest of the industry. TOI outperforms 63.24% of its industry peers.
- The Return On Invested Capital of TOI (10.29%) is better than 85.29% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TOI is in line with the industry average of 12.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 1.41% | ||
| ROIC | 10.29% |
ROA(3y)5.03%
ROA(5y)-31.64%
ROE(3y)23.53%
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)13.96%
1.3 Margins
- TOI has a better Profit Margin (0.40%) than 63.24% of its industry peers.
- TOI's Profit Margin has declined in the last couple of years.
- TOI has a better Operating Margin (15.38%) than 80.88% of its industry peers.
- In the last couple of years the Operating Margin of TOI has remained more or less at the same level.
- With an excellent Gross Margin value of 90.36%, TOI belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
- In the last couple of years the Gross Margin of TOI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.38% | ||
| PM (TTM) | 0.4% | ||
| GM | 90.36% |
OM growth 3Y1.27%
OM growth 5Y1.03%
PM growth 3YN/A
PM growth 5Y-8.59%
GM growth 3Y0.4%
GM growth 5Y0.29%
2. Health
2.1 Basic Checks
- TOI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TOI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for TOI has been increased compared to 5 years ago.
- TOI has a worse debt/assets ratio than last year.
2.2 Solvency
- TOI has an Altman-Z score of 2.80. This is not the best score and indicates that TOI is in the grey zone with still only limited risk for bankruptcy at the moment.
- TOI has a better Altman-Z score (2.80) than 60.29% of its industry peers.
- The Debt to FCF ratio of TOI is 2.24, which is a good value as it means it would take TOI, 2.24 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TOI (2.24) is better than 72.06% of its industry peers.
- TOI has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.88, TOI is doing worse than 69.12% of the companies in the same industry.
- Although TOI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 2.8 |
ROIC/WACC1
WACC10.28%
2.3 Liquidity
- A Current Ratio of 0.87 indicates that TOI may have some problems paying its short term obligations.
- The Current ratio of TOI (0.87) is worse than 64.71% of its industry peers.
- TOI has a Quick Ratio of 0.87. This is a bad value and indicates that TOI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TOI (0.87) is worse than 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 167.65% over the past year.
- Measured over the past years, TOI shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.92% on average per year.
- Looking at the last year, TOI shows a quite strong growth in Revenue. The Revenue has grown by 19.42% in the last year.
- Measured over the past years, TOI shows a very strong growth in Revenue. The Revenue has been growing by 25.41% on average per year.
EPS 1Y (TTM)167.65%
EPS 3YN/A
EPS 5Y-9.92%
EPS Q2Q%514.29%
Revenue 1Y (TTM)19.42%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%23.02%
3.2 Future
- The Earnings Per Share is expected to grow by 33.72% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 17.64% on average over the next years. This is quite good.
EPS Next Y44.51%
EPS Next 2Y48.92%
EPS Next 3Y33.72%
EPS Next 5YN/A
Revenue Next Year19.89%
Revenue Next 2Y19.19%
Revenue Next 3Y17.64%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.22, the valuation of TOI can be described as expensive.
- TOI's Price/Earnings ratio is a bit cheaper when compared to the industry. TOI is cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. TOI is around the same levels.
- With a Price/Forward Earnings ratio of 27.93, TOI can be considered very expensive at the moment.
- 66.18% of the companies in the same industry are more expensive than TOI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, TOI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 27.93 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TOI indicates a somewhat cheap valuation: TOI is cheaper than 70.59% of the companies listed in the same industry.
- TOI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TOI is cheaper than 80.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
- TOI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- TOI has a very decent profitability rating, which may justify a higher PE ratio.
- TOI's earnings are expected to grow with 33.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y48.92%
EPS Next 3Y33.72%
5. Dividend
5.1 Amount
- No dividends for TOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TOPICUS.COM INC-SUB VOTING / TOI.CA FAQ
Can you provide the ChartMill fundamental rating for TOPICUS.COM INC-SUB VOTING?
ChartMill assigns a fundamental rating of 5 / 10 to TOI.CA.
Can you provide the valuation status for TOPICUS.COM INC-SUB VOTING?
ChartMill assigns a valuation rating of 6 / 10 to TOPICUS.COM INC-SUB VOTING (TOI.CA). This can be considered as Fairly Valued.
How profitable is TOPICUS.COM INC-SUB VOTING (TOI.CA) stock?
TOPICUS.COM INC-SUB VOTING (TOI.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for TOI stock?
The financial health rating of TOPICUS.COM INC-SUB VOTING (TOI.CA) is 3 / 10.
Can you provide the expected EPS growth for TOI stock?
The Earnings per Share (EPS) of TOPICUS.COM INC-SUB VOTING (TOI.CA) is expected to grow by 44.51% in the next year.