TSS INC (TSSI) Stock Fundamental Analysis
NASDAQ:TSSI - US87288V1017 - Common Stock
13.71 USD
+0.77 (+5.95%)
13.7 USD
-0.01 (-0.07%)
Taking everything into account, TSSI scores 4 out of 10 in our fundamental rating. TSSI was compared to 85 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
In the past year TSSI was profitable.
TSSI had a positive operating cash flow in the past year.
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 6.47%, TSSI is doing good in the industry, outperforming 74.12% of the companies in the same industry.
The Return On Equity of TSSI (94.58%) is better than 98.82% of its industry peers.
TSSI's Return On Invested Capital of 18.85% is amongst the best of the industry. TSSI outperforms 92.94% of its industry peers.
TSSI had an Average Return On Invested Capital over the past 3 years of 14.85%. This is significantly below the industry average of 21.77%.
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
With a Profit Margin value of 3.43%, TSSI perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
TSSI's Profit Margin has improved in the last couple of years.
TSSI's Operating Margin of 4.90% is in line compared to the rest of the industry. TSSI outperforms 54.12% of its industry peers.
TSSI's Operating Margin has improved in the last couple of years.
The Gross Margin of TSSI (12.21%) is worse than 92.94% of its industry peers.
In the last couple of years the Gross Margin of TSSI has declined.
| 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.
Compared to 1 year ago, TSSI has more shares outstanding
TSSI has more shares outstanding than it did 5 years ago.
TSSI has a worse debt/assets ratio than last year.
2.2 Solvency
TSSI has an Altman-Z score of 3.11. This indicates that TSSI is financially healthy and has little risk of bankruptcy at the moment.
TSSI's Altman-Z score of 3.11 is in line compared to the rest of the industry. TSSI outperforms 54.12% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.91, TSSI belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
A Debt/Equity ratio of 2.05 is on the high side and indicates that TSSI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.05, TSSI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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 | 3.11 |
ROIC/WACC2.02
WACC9.32%
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 84.71% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that TSSI may have some problems paying 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 90.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 300.00% 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.
TSSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 328.80%.
TSSI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.21% yearly.
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
The Price/Earnings ratio is 38.08, which means the current valuation is very expensive for TSSI.
TSSI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.06. TSSI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.08 | ||
| 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 the industry average as 72.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 23.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
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 |
13.71
+0.77 (+5.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners29.27%
Inst Owner Change53.17%
Ins Owners14.46%
Ins Owner Change-1.29%
Market Cap372.77M
AnalystsN/A
Price TargetN/A
Short Float %15.22%
Short Ratio1.12
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 | 38.08 | ||
| Fwd PE | N/A | ||
| P/S | 1.42 | ||
| P/FCF | 17.41 | ||
| P/OCF | 6.91 | ||
| P/B | 39.08 | ||
| P/tB | 42.56 | ||
| EV/EBITDA | 23.28 |
EPS(TTM)0.36
EY2.63%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.79
FCFY5.74%
OCF(TTM)1.98
OCFY14.47%
SpS9.67
BVpS0.35
TBVpS0.32
PEG (NY)N/A
PEG (5Y)0.43
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 | 3.11 |
F-Score4
WACC9.32%
ROIC/WACC2.02
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%