TOPICUS.COM INC-SUB VOTING (TOI.CA) Stock Fundamental Analysis
TSX-V:TOI - TSX Venture Exchange - CA89072T1021 - Common Stock - Currency: CAD
TOI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. While TOI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TOI is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year TOI was profitable.
In the past year TOI had a positive cash flow from operations.
Of the past 5 years TOI 4 years were profitable.
In the past 5 years TOI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.83%, TOI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With an excellent Return On Equity value of 22.98%, TOI belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
TOI has a Return On Invested Capital of 13.26%. This is amongst the best in the industry. TOI outperforms 87.30% 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 13.74%.
The last Return On Invested Capital (13.26%) for TOI is above the 3 year average (13.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 22.98% | ||
| ROIC | 13.26% |
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's Profit Margin of 7.34% is fine compared to the rest of the industry. TOI outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of TOI has declined.
TOI has a Operating Margin of 15.83%. This is amongst the best in the industry. TOI outperforms 84.13% of its industry peers.
TOI's Operating Margin has been stable in the last couple of years.
TOI has a Gross Margin of 90.96%. This is amongst the best in the industry. TOI outperforms 95.24% of its industry peers.
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 | 15.83% | ||
| PM (TTM) | 7.34% | ||
| GM | 90.96% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOI is creating some value.
The number of shares outstanding for TOI has been increased compared to 1 year ago.
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
An Altman-Z score of 4.37 indicates that TOI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.37, TOI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
TOI has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
TOI has a better Debt to FCF ratio (1.03) than 77.78% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that TOI is somewhat dependend on debt financing.
TOI has a worse Debt to Equity ratio (0.83) than 61.90% 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 | 0.83 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.37
WACC9.7%
2.3 Liquidity
TOI has a Current Ratio of 0.60. 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 worse Current ratio (0.60) than 69.84% of its industry peers.
A Quick Ratio of 0.60 indicates that TOI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, TOI is doing worse than 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.62% over the past year.
TOI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.90% yearly.
The Revenue has grown by 15.15% in the past year. This is quite good.
The Revenue has been growing by 25.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)40.62%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%28.64%
Revenue 1Y (TTM)15.15%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%7.91%
3.2 Future
The Earnings Per Share is expected to grow by 49.34% on average over the next years. This is a very strong growth
Based on estimates for the next years, TOI will show a quite strong growth in Revenue. The Revenue will grow by 17.75% on average per year.
EPS Next Y130.08%
EPS Next 2Y49.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.51%
Revenue Next 2Y17.75%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 92.78, which means the current valuation is very expensive for TOI.
TOI's Price/Earnings ratio is a bit cheaper when compared to the industry. TOI is cheaper than 63.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, TOI is valued quite expensively.
The Price/Forward Earnings ratio is 50.11, which means the current valuation is very expensive for TOI.
Based on the Price/Forward Earnings ratio, TOI is valued a bit cheaper than 71.43% of the companies in the same industry.
TOI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.78 | ||
| Fwd PE | 50.11 |
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 60.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TOI is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.87 | ||
| EV/EBITDA | 23.12 |
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.
The decent profitability rating of TOI may justify a higher PE ratio.
TOI's earnings are expected to grow with 49.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y49.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:TOI (5/23/2025, 7:00:00 PM)
172.58
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners19.53%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap14.34B
Analysts84
Price Target173.4 (0.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.42
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)-20.69%
Min EPS beat(2)-40.91%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-26.98%
Min EPS beat(4)-43.37%
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)1
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-9.33%
Max Revenue beat(2)3.2%
Revenue beat(4)1
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-9.33%
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)8.97%
PT rev (3m)34.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)27.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)9.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.78 | ||
| Fwd PE | 50.11 | ||
| P/S | 6.8 | ||
| P/FCF | 23.87 | ||
| P/OCF | 23.35 | ||
| P/B | 21.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.12 |
EPS(TTM)1.86
EY1.08%
EPS(NY)3.44
Fwd EY2%
FCF(TTM)7.23
FCFY4.19%
OCF(TTM)7.39
OCFY4.28%
SpS25.37
BVpS8.1
TBVpS-10.62
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 22.98% | ||
| ROCE | 20.35% | ||
| ROIC | 13.26% | ||
| ROICexc | 17.2% | ||
| ROICexgc | 3738.6% | ||
| OM | 15.83% | ||
| PM (TTM) | 7.34% | ||
| GM | 90.96% | ||
| FCFM | 28.5% |
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-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 4.84% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 8.53 | ||
| Cash Conversion | 100.7% | ||
| Profit Quality | 388.3% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 4.37 |
F-Score6
WACC9.7%
ROIC/WACC1.37
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)40.62%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%28.64%
EPS Next Y130.08%
EPS Next 2Y49.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.15%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%7.91%
Revenue Next Year25.51%
Revenue Next 2Y17.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.33%
EBIT growth 3Y21.89%
EBIT growth 5Y26.7%
EBIT Next Year136.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y97.75%
FCF growth 3Y25.66%
FCF growth 5Y23.36%
OCF growth 1Y94.85%
OCF growth 3Y25.37%
OCF growth 5Y23.43%