TSX:TCS

Stock Analysis Report

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Market Cap

CA$583.0m

Last Updated

2021/06/24 02:34 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Tecsys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TCS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

TCS

4.2%

CA Software

-0.9%

CA Market


1 Year Return

74.8%

TCS

47.1%

CA Software

36.1%

CA Market

Return vs Industry: TCS exceeded the Canadian Software industry which returned 47.1% over the past year.

Return vs Market: TCS exceeded the Canadian Market which returned 36.1% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day-2.0%4.2%-0.9%
30 Day-3.2%12.1%1.9%
90 Day-9.0%9.1%6.2%
1 Year76.0%74.8%53.4%47.1%40.5%36.1%
3 Year170.6%161.2%84.0%73.0%31.7%19.0%
5 Year360.5%332.3%218.7%198.4%59.5%35.6%

Long-Term Price Volatility Vs. Market

How volatile is Tecsys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tecsys undervalued compared to its fair value and its price relative to the market?

102.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCS (CA$40.2) is trading above our estimate of fair value (CA$31.34)

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


Price To Earnings Ratio

PE vs Industry: TCS is poor value based on its PE Ratio (102.2x) compared to the Canadian Software industry average (38.8x).

PE vs Market: TCS is poor value based on its PE Ratio (102.2x) compared to the Canadian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: TCS is overvalued based on its PB Ratio (8.8x) compared to the CA Software industry average (7.1x).


Future Growth

How is Tecsys forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (22.2% per year) is above the savings rate (1.5%).

Earnings vs Market: TCS's earnings (22.2% per year) are forecast to grow faster than the Canadian market (14% per year).

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

Revenue vs Market: TCS's revenue (13.3% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: TCS's revenue (13.3% 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


Past Performance

How has Tecsys performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (4.7%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have declined by 13.5% per year over the past 5 years.

Accelerating Growth: TCS's earnings growth over the past year (170%) exceeds its 5-year average (-13.5% per year).

Earnings vs Industry: TCS earnings growth over the past year (170%) exceeded the Software industry 33.7%.


Return on Equity

High ROE: TCS's Return on Equity (8.4%) is considered low.


Financial Health

How is Tecsys's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets (CA$70.4M) exceed its short term liabilities (CA$40.7M).

Long Term Liabilities: TCS's short term assets (CA$70.4M) exceed its long term liabilities (CA$18.9M).


Debt to Equity History and Analysis

Debt Level: TCS's debt to equity ratio (15%) is considered satisfactory.

Reducing Debt: TCS's debt to equity ratio has reduced from 16% to 15% over the past 5 years.

Debt Coverage: TCS's debt is well covered by operating cash flow (172.7%).

Interest Coverage: TCS's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCS's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: TCS's dividend (0.65%) is low compared to the top 25% of dividend payers in the Canadian market (4.5%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Peter Brereton

23.42yrs

Tenure

CA$1,475,788

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 ($USD1.20M) is above average for companies of similar size in the Canadian market ($USD827.14K).

Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TCS's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: TCS's board of directors are seasoned and experienced ( 12.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TCS insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tecsys Inc.
  • Ticker: TCS
  • Exchange: TSX
  • Founded: 1983
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$582.960m
  • Shares outstanding: 14.51m
  • Website: https://www.tecsys.com

Number of Employees


Location

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

Listings


Biography

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, distribut...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 02:34
End of Day Share Price2021/06/23 00:00
Earnings2021/01/31
Annual Earnings2020/04/30


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.