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TCS

Tecsys TSX:TCS Stock Report

Last Price

CA$37.42

Market Cap

CA$544.9m

7D

16.4%

1Y

-8.6%

Updated

27 Jun, 2022

Data

Company Financials +
TCS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

TCS Stock Overview

Tecsys Inc. engages in the development, marketing, and sale of supply chain management software in Canada, the United States, Europe, and internationally.

Tecsys Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tecsys
Historical stock prices
Current Share PriceCA$37.42
52 Week HighCA$61.06
52 Week LowCA$24.92
Beta0.56
1 Month Change26.38%
3 Month Change16.94%
1 Year Change-8.64%
3 Year Change171.16%
5 Year Change156.30%
Change since IPO458.51%

Recent News & Updates

May 31
Does Tecsys (TSE:TCS) Have A Healthy Balance Sheet?

Does Tecsys (TSE:TCS) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Mar 15
Tecsys (TSE:TCS) Has Affirmed Its Dividend Of CA$0.07

Tecsys (TSE:TCS) Has Affirmed Its Dividend Of CA$0.07

Tecsys Inc. ( TSE:TCS ) will pay a dividend of CA$0.07 on the 14th of April. Based on this payment, the dividend yield...

Shareholder Returns

TCSCA SoftwareCA Market
7D16.4%5.7%0.1%
1Y-8.6%-26.5%-2.6%

Return vs Industry: TCS exceeded the Canadian Software industry which returned -24.6% over the past year.

Return vs Market: TCS underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is TCS's price volatile compared to industry and market?
TCS volatility
TCS Average Weekly Movement7.5%
Software Industry Average Movement12.8%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: TCS is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TCS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1983655Peter Breretonhttps://www.tecsys.com

Tecsys Inc. engages in the development, marketing, and sale of supply chain management software in Canada, the United States, Europe, and internationally. The company offers warehouse management, distribution and transportation management, supply management at point-of-use, and retail order management, as well as financial management and analytics solutions. It also provides demand planning; and implementation, system enhancement, cloud, advisory, consulting, education, and support services, as well as OneSprint, a preconfigured cloud-based warehouse management systems package.

Tecsys Fundamentals Summary

How do Tecsys's earnings and revenue compare to its market cap?
TCS fundamental statistics
Market CapCA$544.94m
Earnings (TTM)CA$3.91m
Revenue (TTM)CA$135.13m

139.3x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCS income statement (TTM)
RevenueCA$135.13m
Cost of RevenueCA$74.38m
Gross ProfitCA$60.75m
Other ExpensesCA$56.84m
EarningsCA$3.91m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Jun 29, 2022

Earnings per share (EPS)0.27
Gross Margin44.96%
Net Profit Margin2.89%
Debt/Equity Ratio12.9%

How did TCS perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

100%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TCS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TCS?

Other financial metrics that can be useful for relative valuation.

TCS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA65.7x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does TCS's PE Ratio compare to its peers?

TCS PE Ratio vs Peers
The above table shows the PE ratio for TCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average79.3x
SYZ Sylogist
91.9x-32.4%CA$174.6m
CVO Coveo Solutions
1x-130.6%CA$550.3m
MAGT Magnet Forensics
161.3x78.9%CA$762.0m
ROI Route1
63.1xn/aCA$5.4m
TCS Tecsys
139.3x63.4%CA$544.9m

Price-To-Earnings vs Peers: TCS is expensive based on its Price-To-Earnings Ratio (139.3x) compared to the peer average (79.3x).


Price to Earnings Ratio vs Industry

How does TCS's PE Ratio compare vs other companies in the CA Software Industry?

Price-To-Earnings vs Industry: TCS is expensive based on its Price-To-Earnings Ratio (139.3x) compared to the Canadian Software industry average (52.7x)


Price to Earnings Ratio vs Fair Ratio

What is TCS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio139.3x
Fair PE Ratio41.5x

Price-To-Earnings vs Fair Ratio: TCS is expensive based on its Price-To-Earnings Ratio (139.3x) compared to the estimated Fair Price-To-Earnings Ratio (41.5x).


Share Price vs Fair Value

What is the Fair Price of TCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TCS (CA$37.42) is trading above our estimate of fair value (CA$27.31)

Significantly Below Fair Value: TCS is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (2.2x)


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Future Growth

How is Tecsys forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


63.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (63.4% per year) is above the savings rate (1.6%).

Earnings vs Market: TCS's earnings (63.4% per year) are forecast to grow faster than the Canadian market (8.2% per year).

High Growth Earnings: TCS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCS's revenue (12.1% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: TCS's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TCS's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Tecsys performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (2.9%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have declined by 3.1% per year over the past 5 years.

Accelerating Growth: TCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCS had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Software industry average (7.6%).


Return on Equity

High ROE: TCS's Return on Equity (5.8%) is considered low.


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Financial Health

How is Tecsys's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCS's short term assets (CA$76.7M) exceed its short term liabilities (CA$44.7M).

Long Term Liabilities: TCS's short term assets (CA$76.7M) exceed its long term liabilities (CA$16.6M).


Debt to Equity History and Analysis

Debt Level: TCS has more cash than its total debt.

Reducing Debt: TCS's debt to equity ratio has increased from 8.3% to 12.9% over the past 5 years.

Debt Coverage: TCS's debt is well covered by operating cash flow (53%).

Interest Coverage: TCS's interest payments on its debt are well covered by EBIT (40.1x coverage).


Balance Sheet


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Dividend

What is Tecsys's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TCS's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: TCS's dividend (0.75%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


Stability and Growth of Payments

Stable Dividend: TCS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: TCS is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: TCS is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: TCS is not paying a notable dividend for the Canadian market.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Peter Brereton

27.42yrs

Tenure

CA$1,467,177

Compensation

Mr. Peter Brereton has been the Chief Executive Officer of Tecsys Inc., since 1998 and its President since 1995. Mr. Brereton served as Co-Chief Executive Officer of Tecsys Inc., until November 2006. Mr. B...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.14M) is about average for companies of similar size in the Canadian market ($USD1.24M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TCS's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: TCS's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tecsys Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Tecsys Inc.
  • Ticker: TCS
  • Exchange: TSX
  • Founded: 1983
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: CA$544.944m
  • Shares outstanding: 14.56m
  • Website: https://www.tecsys.com

Number of Employees


Location

  • Tecsys Inc.
  • 1 Place Alexis Nihon
  • Suite 800
  • Montreal
  • Quebec
  • H3Z 3B8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/01/31
Annual Earnings2021/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.