11.2 USD
+0.03 (+0.27%)
11.05 USD
-0.15 (-1.34%)
Taking everything into account, TSSI scores 3 out of 10 in our fundamental rating. TSSI was compared to 88 industry peers in the IT Services industry. TSSI has a medium profitability rating, but doesn't score so well on its financial health evaluation. TSSI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TSSI was profitable.
- In the past year TSSI has reported a negative cash flow from operations.
- In multiple years TSSI reported negative net income over the last 5 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
- TSSI has a Return On Assets (2.95%) which is comparable to the rest of the industry.
- TSSI has a Return On Equity of 7.69%. This is in the better half of the industry: TSSI outperforms 63.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.28%, TSSI is in the better half of the industry, outperforming 64.77% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TSSI is significantly below the industry average of 29.06%.
- The last Return On Invested Capital (6.28%) for TSSI is well below the 3 year average (14.85%), which needs to be investigated, but indicates that TSSI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 7.69% | ||
| ROIC | 6.28% |
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 2.08%, TSSI perfoms like the industry average, outperforming 51.14% of the companies in the same industry.
- TSSI's Profit Margin has improved in the last couple of years.
- TSSI has a Operating Margin (3.48%) which is comparable to the rest of the industry.
- TSSI's Operating Margin has improved in the last couple of years.
- TSSI has a Gross Margin of 12.30%. This is amonst the worse of the industry: TSSI underperforms 89.77% of its industry peers.
- In the last couple of years the Gross Margin of TSSI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.48% | ||
| PM (TTM) | 2.08% | ||
| GM | 12.3% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSSI is creating some value.
- Compared to 1 year ago, TSSI has more shares outstanding
- The number of shares outstanding for TSSI has been increased compared to 5 years ago.
- TSSI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.25 indicates that TSSI is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 3.25, TSSI perfoms like the industry average, outperforming 55.68% of the companies in the same industry.
- A Debt/Equity ratio of 0.30 indicates that TSSI is not too dependend on debt financing.
- TSSI's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. TSSI outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.25 |
ROIC/WACC0.66
WACC9.58%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that TSSI should not have too much problems paying its short term obligations.
- TSSI has a Current ratio (1.52) which is in line with its industry peers.
- TSSI has a Quick Ratio of 1.35. This is a normal value and indicates that TSSI is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of TSSI (1.35) is worse than 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- TSSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
- The Earnings Per Share has been growing by 88.55% on average over the past years. This is a very strong growth
- The Revenue has grown by 91.66% in the past year. This is a very strong growth!
- The Revenue has been growing by 35.21% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.11%
EPS 3YN/A
EPS 5Y88.55%
EPS Q2Q%-160%
Revenue 1Y (TTM)91.66%
Revenue growth 3Y75.49%
Revenue growth 5Y35.21%
Sales Q2Q%-40.23%
3.2 Future
- The Earnings Per Share is expected to grow by 14.15% on average over the next years. This is quite good.
- Based on estimates for the next years, TSSI will show a decrease in Revenue. The Revenue will decrease by -6.66% on average per year.
EPS Next Y-49%
EPS Next 2Y-7.8%
EPS Next 3Y14.15%
EPS Next 5YN/A
Revenue Next Year54.04%
Revenue Next 2Y8.32%
Revenue Next 3Y-6.66%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 56.00 indicates a quite expensive valuation of TSSI.
- The rest of the industry has a similar Price/Earnings ratio as TSSI.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TSSI is valued quite expensively.
- TSSI is valuated quite expensively with a Price/Forward Earnings ratio of 54.90.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TSSI is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of TSSI to the average of the S&P500 Index (25.98), we can say TSSI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56 | ||
| Fwd PE | 54.9 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.61 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as TSSI's earnings are expected to grow with 14.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-7.8%
EPS Next 3Y14.15%
5. Dividend
5.1 Amount
- TSSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSS INC / TSSI FAQ
What is the ChartMill fundamental rating of TSS INC (TSSI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TSSI.
What is the valuation status for TSSI stock?
ChartMill assigns a valuation rating of 1 / 10 to TSS INC (TSSI). This can be considered as Overvalued.
Can you provide the profitability details for TSS INC?
TSS INC (TSSI) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for TSSI stock?
The Earnings per Share (EPS) of TSS INC (TSSI) is expected to decline by -49% in the next year.