TSS INC (TSSI) Stock Fundamental Analysis
NASDAQ:TSSI - Nasdaq - US87288V1017 - Common Stock - Currency: USD
Taking everything into account, TSSI scores 4 out of 10 in our fundamental rating. TSSI was compared to 82 industry peers in the IT Services industry. Both the profitability and the financial health of TSSI get a neutral evaluation. Nothing too spectacular is happening here. 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.
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.
In multiple years TSSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TSSI (7.87%) is better than 73.17% of its industry peers.
Looking at the Return On Equity, with a value of 95.20%, TSSI belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.83%, TSSI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
TSSI had an Average Return On Invested Capital over the past 3 years of 14.85%. This is significantly below the industry average of 21.78%.
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
The Profit Margin of TSSI (3.87%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TSSI has grown nicely.
TSSI has a Operating Margin of 5.35%. This is comparable to the rest of the industry: TSSI outperforms 56.10% of its industry peers.
In the last couple of years the Operating Margin of TSSI has grown nicely.
TSSI's Gross Margin of 12.48% is on the low side compared to the rest of the industry. TSSI is outperformed by 92.68% of its industry peers.
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
Compared to 1 year ago, TSSI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.65 indicates that TSSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, TSSI is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
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 Debt to FCF ratio of 0.82. This is amongst the best in the industry. TSSI outperforms 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.
The Debt to Equity ratio of TSSI (0.87) is worse 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 | 3.65 |
ROIC/WACC2.33
WACC9.81%
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 worse Current ratio (0.85) 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.
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.
Measured over the past years, TSSI shows a very strong growth in Earnings Per Share. The EPS has been growing by 88.55% on average per year.
The Revenue has grown by 262.85% 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)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
Based on the Price/Earnings ratio of 40.11, the valuation of TSSI can be described as expensive.
TSSI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TSSI to the average of the S&P500 Index (26.25), we can say TSSI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.11 | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSSI.
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 | 36.24 | ||
| EV/EBITDA | 26.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.45
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 |
14.44
+2.2 (+17.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners27.09%
Inst Owner Change79.29%
Ins Owners25.3%
Ins Owner Change6.17%
Market Cap361.29M
AnalystsN/A
Price TargetN/A
Short Float %11.88%
Short Ratio2.55
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 | 40.11 | ||
| Fwd PE | N/A | ||
| P/S | 1.56 | ||
| P/FCF | 36.24 | ||
| P/OCF | 10.85 | ||
| P/B | 38.47 | ||
| P/tB | 41.96 | ||
| EV/EBITDA | 26.1 |
EPS(TTM)0.36
EY2.49%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.4
FCFY2.76%
OCF(TTM)1.33
OCFY9.21%
SpS9.24
BVpS0.38
TBVpS0.34
PEG (NY)N/A
PEG (5Y)0.45
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 | 3.65 |
F-Score5
WACC9.81%
ROIC/WACC2.33
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%