Tecsys Inc.

TSX:TCS Stock Report

Market Cap: CA$650.6m

Tecsys Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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$44.62) is trading below our estimate of fair value (CA$66.35)

Significantly Below Fair Value: TCS is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As TCS is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TCS. This is calculated by dividing TCS's market cap by their current revenue.
What is TCS's PS Ratio?
PS Ratio3.8x
SalesCA$171.54m
Market CapCA$650.60m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.2x
SYZ Sylogist
3.6x6.2%CA$245.0m
BB BlackBerry
2.2x21.7%CA$1.9b
QIS Quorum Information Technologies
1.6x1.5%CA$64.0m
VERS VERSES AI
37.4xn/aCA$72.3m
TCS Tecsys
3.8x10.2%CA$650.6m

Price-To-Sales vs Peers: TCS is good value based on its Price-To-Sales Ratio (3.8x) compared to the peer average (11.2x).

Price to Sales Ratio vs Industry

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

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
QUIS Quisitive Technology Solutions
0.6x6.2%US$70.44m
BTCW Bitcoin Well
0.5xn/aUS$26.51m
PLUR Plurilock Security
0.4xn/aUS$20.12m
NOW NowVertical Group
0.4x6.2%US$17.65m
TCS 3.8xIndustry Avg. 3.6xNo. of Companies27PS02.85.68.411.214+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TCS is expensive based on its Price-To-Sales Ratio (3.8x) compared to the Canadian Software industry average (3.7x).

Price to Sales Ratio vs Fair Ratio

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

TCS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.8x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: TCS is expensive based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TCS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$44.62
CA$45.60
+2.2%
7.4%CA$50.00CA$40.00n/a5
Nov ’25CA$39.80
CA$45.60
+14.6%
7.4%CA$50.00CA$40.00n/a5
Oct ’25CA$40.78
CA$45.60
+11.8%
7.4%CA$50.00CA$40.00n/a5
Sep ’25CA$43.65
CA$45.80
+4.9%
6.7%CA$50.00CA$41.00n/a5
Aug ’25CA$40.25
CA$45.80
+13.8%
6.7%CA$50.00CA$41.00n/a5
Jul ’25CA$34.99
CA$46.33
+32.4%
4.3%CA$50.00CA$45.00n/a6
Jun ’25CA$35.40
CA$46.60
+31.6%
4.4%CA$50.00CA$45.00n/a5
May ’25CA$37.90
CA$46.60
+23.0%
4.4%CA$50.00CA$45.00n/a5
Apr ’25CA$38.66
CA$46.60
+20.5%
4.4%CA$50.00CA$45.00n/a5
Mar ’25CA$38.87
CA$46.40
+19.4%
4.8%CA$50.00CA$44.00n/a5
Feb ’25CA$34.07
CA$46.40
+36.2%
4.8%CA$50.00CA$44.00n/a5
Jan ’25CA$32.81
CA$46.40
+41.4%
4.8%CA$50.00CA$44.00n/a5
Dec ’24CA$33.75
CA$46.40
+37.5%
4.8%CA$50.00CA$44.00n/a5
Nov ’24CA$25.50
CA$46.75
+83.3%
5.1%CA$50.00CA$44.00CA$39.804
Oct ’24CA$28.00
CA$46.40
+65.7%
4.8%CA$50.00CA$44.00CA$40.785
Sep ’24CA$29.00
CA$46.40
+60.0%
4.8%CA$50.00CA$44.00CA$43.655
Aug ’24CA$28.00
CA$46.75
+67.0%
5.1%CA$50.00CA$44.00CA$40.254
Jul ’24CA$27.86
CA$46.50
+66.9%
5.8%CA$50.00CA$43.00CA$34.994
Jun ’24CA$25.67
CA$45.50
+77.2%
7.3%CA$50.00CA$40.00CA$35.406
May ’24CA$26.70
CA$45.50
+70.4%
7.3%CA$50.00CA$40.00CA$37.906
Apr ’24CA$27.36
CA$45.43
+66.0%
6.7%CA$50.00CA$40.00CA$38.667
Mar ’24CA$26.86
CA$45.14
+68.1%
7.4%CA$50.00CA$40.00CA$38.877
Feb ’24CA$28.64
CA$45.14
+57.6%
7.4%CA$50.00CA$40.00CA$34.077
Jan ’24CA$26.53
CA$45.14
+70.2%
7.4%CA$50.00CA$40.00CA$32.817
Dec ’23CA$30.30
CA$45.93
+51.6%
6.3%CA$50.00CA$40.00CA$33.757
Nov ’23CA$29.98
CA$46.64
+55.6%
6.8%CA$50.00CA$40.00CA$25.507

Analyst Forecast: Target price is less than 20% higher than the current share price.

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