TOPICUS.COM INC-SUB VOTING (TOI.CA) Stock Fundamental Analysis
Canada - TSX-V:TOI - CA89072T1021 - Common Stock
145.2 CAD
-6.8 (-4.47%)
We assign a fundamental rating of 6 out of 10 to TOI. TOI was compared to 65 industry peers in the Software industry. While TOI has a great profitability rating, there are some minor concerns on its financial health. TOI is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
TOI had positive earnings in the past year.
TOI had a positive operating cash flow in the past year.
TOI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TOI had a positive operating cash flow.
1.2 Ratios
TOI's Return On Assets of 4.62% is fine compared to the rest of the industry. TOI outperforms 78.46% of its industry peers.
TOI's Return On Equity of 21.34% is amongst the best of the industry. TOI outperforms 89.23% of its industry peers.
The Return On Invested Capital of TOI (10.77%) is better than 86.15% 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 12.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 21.34% | ||
| ROIC | 10.77% |
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
Looking at the Profit Margin, with a value of 7.65%, TOI belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of TOI has declined.
The Operating Margin of TOI (15.79%) is better than 84.62% of its industry peers.
TOI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 90.68%, TOI belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
TOI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.79% | ||
| PM (TTM) | 7.65% | ||
| GM | 90.68% |
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.
Compared to 1 year ago, TOI has more shares outstanding
The number of shares outstanding for TOI has been increased compared to 5 years ago.
Compared to 1 year ago, TOI has a worse debt to assets ratio.
2.2 Solvency
TOI has an Altman-Z score of 3.55. This indicates that TOI is financially healthy and has little risk of bankruptcy at the moment.
TOI's Altman-Z score of 3.55 is fine compared to the rest of the industry. TOI outperforms 61.54% of its industry peers.
TOI has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
TOI has a better Debt to FCF ratio (1.62) than 72.31% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that TOI has dependencies on debt financing.
The Debt to Equity ratio of TOI (1.07) is worse than 63.08% of its industry peers.
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 | 1.07 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.01
WACC10.65%
2.3 Liquidity
A Current Ratio of 0.69 indicates that TOI may have some problems paying its short term obligations.
TOI's Current ratio of 0.69 is on the low side compared to the rest of the industry. TOI is outperformed by 67.69% of its industry peers.
TOI has a Quick Ratio of 0.69. This is a bad value and indicates that TOI is not financially healthy enough and could expect problems in meeting its short term obligations.
TOI has a Quick ratio of 0.68. This is in the lower half of the industry: TOI underperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
TOI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.07%, which is quite impressive.
Measured over the past years, TOI shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.90% on average per year.
Looking at the last year, TOI shows a quite strong growth in Revenue. The Revenue has grown by 16.46% 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)48.07%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%47.62%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%19.55%
3.2 Future
The Earnings Per Share is expected to grow by 51.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.25% on average over the next years. This is quite good.
EPS Next Y84.59%
EPS Next 2Y49.34%
EPS Next 3Y51.61%
EPS Next 5YN/A
Revenue Next Year22.78%
Revenue Next 2Y17.75%
Revenue Next 3Y17.25%
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.
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
With a Price/Earnings ratio of 68.17, TOI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TOI indicates a somewhat cheap valuation: TOI is cheaper than 64.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.32, TOI is valued quite expensively.
With a Price/Forward Earnings ratio of 40.53, TOI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TOI is valued a bit cheaper than 67.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.89, TOI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.17 | ||
| Fwd PE | 40.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOI is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
76.92% of the companies in the same industry are more expensive than TOI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.77 | ||
| EV/EBITDA | 19.65 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as TOI's earnings are expected to grow with 51.61% in the coming years.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y49.34%
EPS Next 3Y51.61%
5. Dividend
5.1 Amount
No dividends for TOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:TOI (9/26/2025, 7:00:00 PM)
145.2
-6.8 (-4.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.83%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap12.10B
Analysts84
Price Target218.79 (50.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.52
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.97%
Min EPS beat(2)-37.36%
Max EPS beat(2)-34.57%
EPS beat(4)0
Avg EPS beat(4)-23.9%
Min EPS beat(4)-37.36%
Max EPS beat(4)-0.47%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-4.57%
Max Revenue beat(2)-2.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-4.57%
Max Revenue beat(4)3.2%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.19%
PT rev (3m)12.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-19.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.17 | ||
| Fwd PE | 40.53 | ||
| P/S | 5.28 | ||
| P/FCF | 20.77 | ||
| P/OCF | 20.17 | ||
| P/B | 14.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.65 |
EPS(TTM)2.13
EY1.47%
EPS(NY)3.58
Fwd EY2.47%
FCF(TTM)6.99
FCFY4.82%
OCF(TTM)7.2
OCFY4.96%
SpS27.49
BVpS9.86
TBVpS-13.54
PEG (NY)0.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 21.34% | ||
| ROCE | 14.53% | ||
| ROIC | 10.77% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 83.17% | ||
| OM | 15.79% | ||
| PM (TTM) | 7.65% | ||
| GM | 90.68% | ||
| FCFM | 25.43% |
ROA(3y)5.03%
ROA(5y)-31.64%
ROE(3y)23.53%
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)13.96%
ROICexc(3y)16.09%
ROICexc(5y)16.51%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.8%
ROCE(5y)19.81%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y8.6%
ROICexc growth 5Y6.98%
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%
F-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 5.74% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 9.75 | ||
| Cash Conversion | 90.74% | ||
| Profit Quality | 332.39% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 3.55 |
F-Score4
WACC10.65%
ROIC/WACC1.01
Cap/Depr(3y)5.14%
Cap/Depr(5y)4.76%
Cap/Sales(3y)0.71%
Cap/Sales(5y)0.67%
Profit Quality(3y)357.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.07%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%47.62%
EPS Next Y84.59%
EPS Next 2Y49.34%
EPS Next 3Y51.61%
EPS Next 5YN/A
Revenue 1Y (TTM)16.46%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%19.55%
Revenue Next Year22.78%
Revenue Next 2Y17.75%
Revenue Next 3Y17.25%
Revenue Next 5YN/A
EBIT growth 1Y25.76%
EBIT growth 3Y21.89%
EBIT growth 5Y26.7%
EBIT Next Year135.81%
EBIT Next 3Y44.99%
EBIT Next 5YN/A
FCF growth 1Y70.09%
FCF growth 3Y25.66%
FCF growth 5Y23.36%
OCF growth 1Y69.02%
OCF growth 3Y25.37%
OCF growth 5Y23.43%