TSX:TCS

Stock Analysis Report

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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 not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TCS's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

TCS

-0.4%

CA Software

-0.5%

CA Market


1 Year Return

131.1%

TCS

42.9%

CA Software

1.7%

CA Market

Return vs Industry: TCS exceeded the Canadian Software industry which returned 42.8% over the past year.

Return vs Market: TCS exceeded the Canadian Market which returned 2.6% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day2.5%-0.4%-0.5%
30 Day5.2%5.7%3.4%
90 Day30.3%20.7%12.3%
1 Year133.2%131.1%43.5%42.9%5.3%1.7%
3 Year191.6%180.9%65.6%62.2%13.0%2.3%
5 Year639.9%592.8%172.0%162.6%66.2%40.7%

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?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCS (CA$51.27) is trading below our estimate of fair value (CA$53.66)

Significantly Below Fair Value: TCS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TCS is poor value based on its PE Ratio (155.7x) compared to the CA Software industry average (56.1x).

PE vs Market: TCS is poor value based on its PE Ratio (155.7x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: TCS is overvalued based on its PB Ratio (11.5x) compared to the CA Software industry average (7.5x).


Next Steps

Future Growth

How is Tecsys forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (32.4% per year) is above the savings rate (1.5%).

Earnings vs Market: TCS's earnings (32.4% per year) are forecast to grow faster than the Canadian market (25.9% per year).

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

Revenue vs Market: TCS's revenue (14.2% per year) is forecast to grow faster than the Canadian market (7.8% per year).

High Growth Revenue: TCS's revenue (14.2% 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


Next Steps

Past Performance

How has Tecsys performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: TCS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TCS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (31.8%).


Return on Equity

High ROE: TCS's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Tecsys's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets (CA$69.2M) exceed its short term liabilities (CA$42.9M).

Long Term Liabilities: TCS's short term assets (CA$69.2M) exceed its long term liabilities (CA$19.4M).


Debt to Equity History and Analysis

Debt Level: TCS's debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: TCS's debt to equity ratio has reduced from 17.7% to 15.9% over the past 5 years.

Debt Coverage: TCS's debt is well covered by operating cash flow (81.9%).

Interest Coverage: TCS's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCS's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.55%).

High Dividend: TCS's dividend (0.51%) is low compared to the top 25% of dividend payers in the Canadian market (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?

3.0yrs

Average management tenure


CEO

Peter Brereton

23yrs

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 ($USD1.16M) is above average for companies of similar size in the Canadian market ($USD793.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Brereton
Executive Chairmanno dataCA$710.11k17.62%
CA$ 125.8m
Peter Brereton
CEO, President & Director23yrsCA$1.48m3.05%
CA$ 21.8m
Mark Bentler
CFO & Secretary2.33yrsCA$607.00k0.044%
CA$ 313.9k
Vito Calabretta
Senior Vice President of Global Operations3.58yrsCA$704.97kno data
Bill King
Chief Revenue Officer2yrsCA$1.14mno data
Catherine Sigmar
Chief Legal Officer & VP of Strategic Initiatives5.58yrsno datano data
Greg MacNeill
Senior Vice President of World Wide Salesno dataCA$637.38kno data
Laurie McGrath
Chief Marketing Officer3yrsno datano data
Patricia Barry
Vice President of Human Resourcesno datano datano data
Steven Berkovitz
Chief Platform Officer1.5yrsno datano data
Robert Colosino
Vice President of Marketing & Business Developmentno dataCA$259.40kno data

3.0yrs

Average Tenure

Experienced Management: TCS's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brereton
Executive Chairmanno dataCA$710.11k17.62%
CA$ 125.8m
Peter Brereton
CEO, President & Director23yrsCA$1.48m3.05%
CA$ 21.8m
Stephen Sasser
Independent Director11.75yrsCA$67.15k0.29%
CA$ 2.1m
Frank Bergandi
Independent Director22.58yrsCA$67.15k0.015%
CA$ 108.9k
Vernon Lobo
Independent Director14.25yrsCA$72.15k0.94%
CA$ 6.7m
David Booth
Independent Director4.33yrsCA$67.15k0.066%
CA$ 470.3k
David Wayland
Independent Director23.33yrsCA$82.15k0.11%
CA$ 792.0k
Kathleen Miller
Independent Director0.33yrno data0.0069%
CA$ 49.5k
John Ensign
Independent Director4.33yrsCA$72.15k0.017%
CA$ 122.5k
Rani Hublou
Independent Director0.33yrno datano data

11.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TCS's board of directors are seasoned and experienced ( 11.8 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 been diluted in the past year, with total shares outstanding growing by 10.2%.


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$713.743m
  • Shares outstanding: 14.42m
  • Website: https://www.tecsys.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCSTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1998
TCYS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1998
9T1DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1998

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 Analysis2021/01/16 00:00
End of Day Share Price2021/01/15 00:00
Earnings2020/10/31
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.