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 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
| TCS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | -0.4% | -0.5% |
| 30 Day | 5.2% | 5.7% | 3.4% |
| 90 Day | 30.3% | 20.7% | 12.3% |
| 1 Year | 133.2%131.1% | 43.5%42.9% | 5.3%1.7% |
| 3 Year | 191.6%180.9% | 65.6%62.2% | 13.0%2.3% |
| 5 Year | 639.9%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
2 days ago | Simply Wall St
A Look At The Fair Value Of Tecsys Inc. (TSE:TCS)2 weeks ago | Simply Wall St
Is Tecsys (TSE:TCS) A Future Multi-bagger?4 weeks ago | Simply Wall St
Here's What We Learned About The CEO Pay At Tecsys Inc. (TSE:TCS)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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | no data | CA$710.11k | 17.62% CA$ 125.8m | |
| CEO, President & Director | 23yrs | CA$1.48m | 3.05% CA$ 21.8m | |
| CFO & Secretary | 2.33yrs | CA$607.00k | 0.044% CA$ 313.9k | |
| Senior Vice President of Global Operations | 3.58yrs | CA$704.97k | no data | |
| Chief Revenue Officer | 2yrs | CA$1.14m | no data | |
| Chief Legal Officer & VP of Strategic Initiatives | 5.58yrs | no data | no data | |
| Senior Vice President of World Wide Sales | no data | CA$637.38k | no data | |
| Chief Marketing Officer | 3yrs | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Chief Platform Officer | 1.5yrs | no data | no data | |
| Vice President of Marketing & Business Development | no data | CA$259.40k | no data |
3.0yrs
Average Tenure
Experienced Management: TCS's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | no data | CA$710.11k | 17.62% CA$ 125.8m | |
| CEO, President & Director | 23yrs | CA$1.48m | 3.05% CA$ 21.8m | |
| Independent Director | 11.75yrs | CA$67.15k | 0.29% CA$ 2.1m | |
| Independent Director | 22.58yrs | CA$67.15k | 0.015% CA$ 108.9k | |
| Independent Director | 14.25yrs | CA$72.15k | 0.94% CA$ 6.7m | |
| Independent Director | 4.33yrs | CA$67.15k | 0.066% CA$ 470.3k | |
| Independent Director | 23.33yrs | CA$82.15k | 0.11% CA$ 792.0k | |
| Independent Director | 0.33yr | no data | 0.0069% CA$ 49.5k | |
| Independent Director | 4.33yrs | CA$72.15k | 0.017% CA$ 122.5k | |
| Independent Director | 0.33yr | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TCS | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jul 1998 |
| TCYS.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jul 1998 |
| 9T1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:00 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/10/31 |
| 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.