TSS INC (TSSI) Stock Fundamental Analysis
NASDAQ:TSSI - Nasdaq - US87288V1017 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSSI. TSSI was compared to 82 industry peers in the IT Services industry. TSSI has an average financial health and profitability rating. TSSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TSSI had positive earnings in the past year.
In the past year TSSI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TSSI reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: TSSI reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 7.87%, TSSI is doing good in the industry, outperforming 74.39% of the companies in the same industry.
TSSI's Return On Equity of 95.20% is amongst the best of the industry. TSSI outperforms 98.78% of its industry peers.
TSSI's Return On Invested Capital of 22.83% is amongst the best of the industry. TSSI outperforms 95.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSSI is significantly below the industry average of 21.60%.
The last Return On Invested Capital (22.83%) for TSSI is above the 3 year average (14.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 95.2% | ||
| ROIC | 22.83% |
ROA(3y)2.08%
ROA(5y)-0.03%
ROE(3y)27.81%
ROE(5y)5.37%
ROIC(3y)14.85%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.87%, TSSI is in line with its industry, outperforming 57.32% of the companies in the same industry.
TSSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.35%, TSSI is in line with its industry, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Operating Margin of TSSI has grown nicely.
Looking at the Gross Margin, with a value of 12.48%, TSSI is doing worse than 92.68% of the companies in the same industry.
In the last couple of years the Gross Margin of TSSI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.35% | ||
| PM (TTM) | 3.87% | ||
| GM | 12.48% |
OM growth 3YN/A
OM growth 5Y31.42%
PM growth 3YN/A
PM growth 5Y59.03%
GM growth 3Y-13.37%
GM growth 5Y-5.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TSSI is creating value.
The number of shares outstanding for TSSI has been increased compared to 1 year ago.
Compared to 5 years ago, TSSI has more shares outstanding
The debt/assets ratio for TSSI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.91 indicates that TSSI is not in any danger for bankruptcy at the moment.
TSSI has a better Altman-Z score (4.91) than 70.73% of its industry peers.
TSSI has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
TSSI has a Debt to FCF ratio of 0.82. This is amongst the best in the industry. TSSI outperforms 84.15% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that TSSI is somewhat dependend on debt financing.
TSSI has a worse Debt to Equity ratio (0.87) than 64.63% of its industry peers.
Although TSSI 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 | 0.87 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.91 |
ROIC/WACC2.36
WACC9.67%
2.3 Liquidity
TSSI has a Current Ratio of 0.85. This is a bad value and indicates that TSSI is not financially healthy enough and could expect problems in meeting its short term obligations.
TSSI has a Current ratio of 0.85. This is amonst the worse of the industry: TSSI underperforms 82.93% of its industry peers.
A Quick Ratio of 0.56 indicates that TSSI may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, TSSI is not doing good in the industry: 90.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 800.00% over the past year.
TSSI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 88.55% yearly.
The Revenue has grown by 262.85% in the past year. This is a very strong growth!
Measured over the past years, TSSI shows a very strong growth in Revenue. The Revenue has been growing by 35.21% on average per year.
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5Y88.55%
EPS Q2Q%16328.57%
Revenue 1Y (TTM)262.85%
Revenue growth 3Y75.49%
Revenue growth 5Y35.21%
Sales Q2Q%522.7%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
TSSI is valuated quite expensively with a Price/Earnings ratio of 70.17.
TSSI's Price/Earnings ratio is in line with the industry average.
TSSI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.17 | ||
| Fwd PE | N/A |
4.2 Price Multiples
TSSI's Enterprise Value to EBITDA ratio is in line with the industry average.
TSSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.39 | ||
| EV/EBITDA | 42.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
TSSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.26
+2.08 (+8.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners28.97%
Inst Owner Change-4.74%
Ins Owners14.57%
Ins Owner Change-0.78%
Market Cap632.01M
AnalystsN/A
Price TargetN/A
Short Float %15.99%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.17 | ||
| Fwd PE | N/A | ||
| P/S | 2.73 | ||
| P/FCF | 63.39 | ||
| P/OCF | 18.99 | ||
| P/B | 67.3 | ||
| P/tB | 73.4 | ||
| EV/EBITDA | 42.78 |
EPS(TTM)0.36
EY1.43%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.4
FCFY1.58%
OCF(TTM)1.33
OCFY5.27%
SpS9.24
BVpS0.38
TBVpS0.34
PEG (NY)N/A
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 95.2% | ||
| ROCE | 29.91% | ||
| ROIC | 22.83% | ||
| ROICexc | 67.42% | ||
| ROICexgc | 71.4% | ||
| OM | 5.35% | ||
| PM (TTM) | 3.87% | ||
| GM | 12.48% | ||
| FCFM | 4.31% |
ROA(3y)2.08%
ROA(5y)-0.03%
ROE(3y)27.81%
ROE(5y)5.37%
ROIC(3y)14.85%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.46%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y31.42%
PM growth 3YN/A
PM growth 5Y59.03%
GM growth 3Y-13.37%
GM growth 5Y-5.58%
F-Score5
Asset Turnover2.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 3125.6% | ||
| Cap/Sales | 10.08% | ||
| Interest Coverage | 3.23 | ||
| Cash Conversion | 253.93% | ||
| Profit Quality | 111.52% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.91 |
F-Score5
WACC9.67%
ROIC/WACC2.36
Cap/Depr(3y)539.22%
Cap/Depr(5y)340.85%
Cap/Sales(3y)2.65%
Cap/Sales(5y)1.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)800%
EPS 3YN/A
EPS 5Y88.55%
EPS Q2Q%16328.57%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)262.85%
Revenue growth 3Y75.49%
Revenue growth 5Y35.21%
Sales Q2Q%522.7%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y361.65%
EBIT growth 3YN/A
EBIT growth 5Y77.69%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y324.55%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y994.81%
OCF growth 3YN/A
OCF growth 5Y38.33%