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
Rewards
Risk Analysis
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
| TCS | Industry | Market | |
|---|---|---|---|
| 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 Year | 76.0%74.8% | 53.4%47.1% | 40.5%36.1% |
| 3 Year | 170.6%161.2% | 84.0%73.0% | 31.7%19.0% |
| 5 Year | 360.5%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
1 week ago | Simply Wall St
Tecsys Inc.'s (TSE:TCS) Dismal Stock Performance Reflects Weak Fundamentals3 weeks ago | Simply Wall St
Is Tecsys Inc. (TSE:TCS) Expensive For A Reason? A Look At Its Intrinsic Value1 month ago | Simply Wall St
Did You Participate In Any Of Tecsys' (TSE:TCS) Incredible 429% Return?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 02:34 |
| End of Day Share Price | 2021/06/23 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2020/04/30 |
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.