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 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.
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
Looking at the Return On Assets, with a value of 4.83%, TOI is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
The Return On Equity of TOI (22.98%) is better than 84.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.26%, TOI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TOI is in line with the industry average of 12.52%.
The 3 year average ROIC (13.20%) for TOI is below the current ROIC(13.26%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 7.34%. This is in the better half of the industry: TOI outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of TOI has declined.
With an excellent Operating Margin value of 15.83%, TOI belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
In the last couple of years the Operating Margin of TOI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 90.96%, TOI belongs to the top of the industry, outperforming 95.24% 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 | 15.83% | ||
| 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.
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.
The debt/assets ratio for TOI is higher compared to a year ago.
2.2 Solvency
TOI has an Altman-Z score of 4.75. This indicates that TOI is financially healthy and has little risk of bankruptcy at the moment.
TOI's Altman-Z score of 4.75 is fine compared to the rest of the industry. TOI outperforms 73.02% of its industry peers.
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 Debt to FCF ratio of 1.03. This is in the better half of the industry: TOI outperforms 77.78% of its industry peers.
TOI has a Debt/Equity ratio of 0.83. This is a neutral value indicating TOI is somewhat dependend on debt financing.
TOI has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: TOI underperforms 65.08% 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 | 0.83 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.32
WACC10.01%
2.3 Liquidity
A Current Ratio of 0.60 indicates that TOI may have some problems paying its short term obligations.
TOI has a Current ratio of 0.60. This is in the lower half of the industry: TOI underperforms 71.43% of its industry peers.
TOI has a Quick 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.
With a Quick ratio value of 0.60, TOI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| 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 42.64% over the past year.
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 15.15% in the last year.
TOI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.41% yearly.
EPS 1Y (TTM)42.64%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%36.36%
Revenue 1Y (TTM)15.15%
Revenue growth 3Y20.37%
Revenue growth 5Y25.41%
Sales Q2Q%15.99%
3.2 Future
Based on estimates for the next years, TOI will show a very strong growth in Earnings Per Share. The EPS will grow by 49.34% on average per year.
The Revenue is expected to grow by 17.75% on average over the next years. This is quite good.
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
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
A Price/Earnings ratio of 100.88 indicates a quite expensive valuation of TOI.
Based on the Price/Earnings ratio, TOI is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
TOI is valuated expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 55.46, which means the current valuation is very expensive for TOI.
65.08% of the companies in the same industry are more expensive than TOI, based on the Price/Forward Earnings ratio.
TOI is valuated expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.88 | ||
| Fwd PE | 55.46 |
4.2 Price Multiples
TOI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TOI is cheaper than 68.25% of the companies in the same industry.
76.19% 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 | 26.5 | ||
| EV/EBITDA | 25.72 |
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.
TOI's earnings are expected to grow with 49.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y49.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TOI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:TOI (7/18/2025, 7:00:00 PM)
194.7
+5.05 (+2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners19.67%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap16.23B
Analysts84
Price Target200.43 (2.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.47
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)-18.92%
Min EPS beat(2)-37.36%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-26.09%
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)0.33%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)3.2%
Revenue beat(4)1
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-6.52%
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)2.61%
PT rev (3m)25.96%
EPS NQ rev (1m)-13.21%
EPS NQ rev (3m)-13.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.7%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.88 | ||
| Fwd PE | 55.46 | ||
| P/S | 7.55 | ||
| P/FCF | 26.5 | ||
| P/OCF | 25.92 | ||
| P/B | 23.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.72 |
EPS(TTM)1.93
EY0.99%
EPS(NY)3.51
Fwd EY1.8%
FCF(TTM)7.35
FCFY3.77%
OCF(TTM)7.51
OCFY3.86%
SpS25.77
BVpS8.23
TBVpS-10.8
PEG (NY)0.78
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 | 4.75 |
F-Score6
WACC10.01%
ROIC/WACC1.32
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)42.64%
EPS 3YN/A
EPS 5Y-9.9%
EPS Q2Q%36.36%
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%15.99%
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 Year135.81%
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%