TSS INC (TSSI) Stock Fundamental Analysis
NASDAQ:TSSI - Nasdaq - US87288V1017 - Common Stock - Currency: USD
Overall TSSI gets a fundamental rating of 4 out of 10. We evaluated TSSI against 82 industry peers in the IT Services industry. TSSI has an average financial health and profitability rating. TSSI is quite expensive at the moment. 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.
In multiple years TSSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
TSSI has a better Return On Assets (7.87%) than 74.39% of its industry peers.
TSSI's Return On Equity of 95.20% is amongst the best of the industry. TSSI outperforms 98.78% of its industry peers.
The Return On Invested Capital of TSSI (22.83%) is better than 95.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSSI is significantly below the industry average of 21.64%.
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
With a Profit Margin value of 3.87%, TSSI perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
In the last couple of years the Profit Margin of TSSI has grown nicely.
TSSI has a Operating Margin (5.35%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TSSI has grown nicely.
With a Gross Margin value of 12.48%, TSSI is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
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
TSSI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TSSI has been increased compared to 1 year ago.
TSSI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSSI has a worse debt to assets ratio.
2.2 Solvency
TSSI has an Altman-Z score of 5.49. This indicates that TSSI is financially healthy and has little risk of bankruptcy at the moment.
TSSI's Altman-Z score of 5.49 is fine compared to the rest of the industry. TSSI outperforms 75.61% of its industry peers.
The Debt to FCF ratio of TSSI is 0.82, which is an excellent value as it means it would take TSSI, only 0.82 years of fcf income to pay off all of its debts.
TSSI has a better Debt to FCF ratio (0.82) than 84.15% of its industry peers.
TSSI has a Debt/Equity ratio of 0.87. This is a neutral value indicating TSSI is somewhat dependend on debt financing.
TSSI has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: TSSI underperforms 64.63% of its industry peers.
Even though the debt/equity ratio score it not favorable for TSSI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 5.49 |
ROIC/WACC2.4
WACC9.5%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TSSI may have some problems paying its short term obligations.
The Current ratio of TSSI (0.85) is worse than 82.93% of its industry peers.
TSSI has a Quick 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.
The Quick ratio of TSSI (0.56) is worse than 90.24% of its industry peers.
| 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.
Looking at the last year, TSSI shows a very strong growth in Revenue. The Revenue has grown by 262.85%.
TSSI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.21% yearly.
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 75.47.
TSSI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TSSI to the average of the S&P500 Index (26.69), we can say TSSI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.47 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSSI indicates a slightly more expensive valuation: TSSI is more expensive than 62.20% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.18 | ||
| EV/EBITDA | 50.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TSSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.17
-1.3 (-4.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners28.97%
Inst Owner Change79.29%
Ins Owners14.57%
Ins Owner Change8.25%
Market Cap679.79M
AnalystsN/A
Price TargetN/A
Short Float %13.63%
Short Ratio1.2
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 | 75.47 | ||
| Fwd PE | N/A | ||
| P/S | 2.94 | ||
| P/FCF | 68.18 | ||
| P/OCF | 20.42 | ||
| P/B | 72.39 | ||
| P/tB | 78.94 | ||
| EV/EBITDA | 50.4 |
EPS(TTM)0.36
EY1.32%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.4
FCFY1.47%
OCF(TTM)1.33
OCFY4.9%
SpS9.24
BVpS0.38
TBVpS0.34
PEG (NY)N/A
PEG (5Y)0.85
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 | 5.49 |
F-Score5
WACC9.5%
ROIC/WACC2.4
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%