TSS INC (TSSI) Stock Fundamental Analysis
USA - NASDAQ:TSSI - US87288V1017 - Common Stock
17.19 USD
+0.3 (+1.78%)
17.0492 USD
-0.14 (-0.82%)
Overall TSSI gets a fundamental rating of 4 out of 10. We evaluated TSSI against 86 industry peers in the IT Services industry. TSSI has only an average score on both its financial health and profitability. TSSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSSI was profitable.
TSSI had a positive operating cash flow in the past year.
In multiple years TSSI reported negative net income over the last 5 years.
In multiple years TSSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TSSI (6.47%) is better than 74.42% of its industry peers.
TSSI has a better Return On Equity (94.58%) than 98.84% of its industry peers.
TSSI has a better Return On Invested Capital (18.85%) than 91.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSSI is significantly below the industry average of 21.39%.
The 3 year average ROIC (14.85%) for TSSI is below the current ROIC(18.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.47% | ||
| ROE | 94.58% | ||
| ROIC | 18.85% |
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
TSSI's Profit Margin of 3.43% is in line compared to the rest of the industry. TSSI outperforms 56.98% of its industry peers.
TSSI's Profit Margin has improved in the last couple of years.
TSSI has a Operating Margin (4.90%) which is comparable to the rest of the industry.
TSSI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.21%, TSSI is not doing good in the industry: 93.02% of the companies in the same industry are doing better.
TSSI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.9% | ||
| PM (TTM) | 3.43% | ||
| GM | 12.21% |
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.
TSSI has more shares outstanding than it did 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 3.61. This indicates that TSSI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.61, TSSI is in the better half of the industry, outperforming 61.63% of the companies in the same industry.
The Debt to FCF ratio of TSSI is 0.91, which is an excellent value as it means it would take TSSI, only 0.91 years of fcf income to pay off all of its debts.
TSSI has a Debt to FCF ratio of 0.91. This is amongst the best in the industry. TSSI outperforms 82.56% of its industry peers.
A Debt/Equity ratio of 2.05 is on the high side and indicates that TSSI has dependencies on debt financing.
The Debt to Equity ratio of TSSI (2.05) is worse than 79.07% 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 | 2.05 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 3.61 |
ROIC/WACC2.01
WACC9.39%
2.3 Liquidity
TSSI has a Current Ratio of 0.81. This is a bad value and indicates that TSSI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.81, TSSI is doing worse than 84.88% of the companies in the same industry.
TSSI has a Quick Ratio of 0.81. 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's Quick ratio of 0.65 is on the low side compared to the rest of the industry. TSSI is outperformed by 89.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
TSSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 300.00%, which is quite impressive.
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 328.80% 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)300%
EPS 3YN/A
EPS 5Y88.55%
EPS Q2Q%0%
Revenue 1Y (TTM)328.8%
Revenue growth 3Y75.49%
Revenue growth 5Y35.21%
Sales Q2Q%261.6%
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 47.75.
TSSI's Price/Earnings ratio is in line with the industry average.
TSSI is valuated expensively when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.75 | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSSI.
Based on the Price/Free Cash Flow ratio, TSSI is valued a bit cheaper than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.83 | ||
| EV/EBITDA | 30.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.54
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 |
17.19
+0.3 (+1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners36.07%
Inst Owner Change0.38%
Ins Owners13.06%
Ins Owner Change-1.6%
Market Cap467.40M
AnalystsN/A
Price TargetN/A
Short Float %21.68%
Short Ratio1.57
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 | 47.75 | ||
| Fwd PE | N/A | ||
| P/S | 1.78 | ||
| P/FCF | 21.83 | ||
| P/OCF | 8.66 | ||
| P/B | 49 | ||
| P/tB | 53.37 | ||
| EV/EBITDA | 30.75 |
EPS(TTM)0.36
EY2.09%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.79
FCFY4.58%
OCF(TTM)1.98
OCFY11.54%
SpS9.67
BVpS0.35
TBVpS0.32
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.47% | ||
| ROE | 94.58% | ||
| ROCE | 24.7% | ||
| ROIC | 18.85% | ||
| ROICexc | 63.97% | ||
| ROICexgc | 67.39% | ||
| OM | 4.9% | ||
| PM (TTM) | 3.43% | ||
| GM | 12.21% | ||
| FCFM | 8.14% |
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-Score4
Asset Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 2207.67% | ||
| Cap/Sales | 12.37% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | 375.36% | ||
| Profit Quality | 237.34% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.61 |
F-Score4
WACC9.39%
ROIC/WACC2.01
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)300%
EPS 3YN/A
EPS 5Y88.55%
EPS Q2Q%0%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)328.8%
Revenue growth 3Y75.49%
Revenue growth 5Y35.21%
Sales Q2Q%261.6%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y279.61%
EBIT growth 3YN/A
EBIT growth 5Y77.69%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.65%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y195.95%
OCF growth 3YN/A
OCF growth 5Y38.33%