TSXV:SYZ

Stock Analysis Report

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Executive Summary

Sylogist Ltd., a software company, provides enterprise resource planning (ERP) solutions to local governments, non-profit and non-governmental organizations, education boards, and Districts and Defense and safety contractors in Canada, the United States, the United Kingdom, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: SYZ's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

SYZ

1.7%

CA IT

0.3%

CA Market


1 Year Return

13.1%

SYZ

-7.7%

CA IT

1.8%

CA Market

Return vs Industry: SYZ exceeded the Canadian IT industry which returned -7.7% over the past year.

Return vs Market: SYZ exceeded the Canadian Market which returned 1.8% over the past year.


Shareholder returns

SYZIndustryMarket
7 Day3.7%1.7%0.3%
30 Day15.1%17.4%9.7%
90 Day2.7%8.1%8.7%
1 Year18.2%13.1%-7.6%-7.7%5.5%1.8%
3 Year18.6%6.6%37.5%37.1%13.3%2.2%
5 Year87.3%54.8%66.3%65.7%53.9%30.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYZ (CA$11.3) is trading below our estimate of fair value (CA$23.62)

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


Price To Earnings Ratio

PE vs Industry: SYZ is poor value based on its PE Ratio (136.2x) compared to the CA IT industry average (22.8x).

PE vs Market: SYZ is poor value based on its PE Ratio (136.2x) compared to the Canadian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SYZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SYZ is good value based on its PB Ratio (5x) compared to the CA IT industry average (5.3x).


Next Steps

Future Growth

How is Sylogist forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SYZ's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SYZ's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: SYZ's revenue (14% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: SYZ's revenue (14% 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 SYZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sylogist performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYZ has a large one-off loss of CA$12.8M impacting its June 30 2020 financial results.

Growing Profit Margin: SYZ's current net profit margins (5.3%) are lower than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: SYZ has become profitable over the past 5 years, growing earnings by 11.1% per year.

Accelerating Growth: SYZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SYZ had negative earnings growth (-83.7%) over the past year, making it difficult to compare to the IT industry average (2.4%).


Return on Equity

High ROE: SYZ's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Sylogist's financial position?


Financial Position Analysis

Short Term Liabilities: SYZ's short term assets (CA$46.8M) exceed its short term liabilities (CA$14.4M).

Long Term Liabilities: SYZ's short term assets (CA$46.8M) exceed its long term liabilities (CA$2.4M).


Debt to Equity History and Analysis

Debt Level: SYZ is debt free.

Reducing Debt: SYZ has not had any debt for past 5 years.

Debt Coverage: SYZ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SYZ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sylogist current dividend yield, its reliability and sustainability?

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYZ's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.6%).

High Dividend: SYZ's dividend (4.42%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).


Stability and Growth of Payments

Stable Dividend: SYZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: SYZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (494.3%), SYZ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Bill Wood

0.083

Tenure

Mr. William C. Wood, also known as Bill, has been President, Chief Executive Officer and Director of Sylogist Ltd. since November 9, 2020. He had been the President of FrontStream Holdings, LLC since April...


Leadership Team

NamePositionTenureCompensationOwnership
Xavier Shorter
VP of Finance & CFO4.17yrsCA$277.75k0.047%
CA$ 122.9k
Donna Smiley
Vice President of Operations1.92yrsCA$327.43k0.019%
CA$ 50.5k
David O. Elder
Executive VP12.5yrsCA$1.30m2.21%
CA$ 5.8m
William Wood
President0.083yrno datano data
Malgorzata Lewandowski
Corporate Controller & Treasurerno dataCA$291.88kno data

3.0yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
David O. Elder
Executive VP12.5yrsCA$1.30m2.21%
CA$ 5.8m
William Wood
President0.083yrno datano data
Craig O'Neill
Independent Director0.33yrno datano data
Lester Fernandes
Independent Director0.33yrno data0.0042%
CA$ 11.0k
Taylor Gray
Independent Director2.92yrsCA$40.00k0.056%
CA$ 147.0k
Barry D. Foster
Chairman0.33yrCA$10.00k2.96%
CA$ 7.7m

0.3yrs

Average Tenure

Experienced Board: SYZ's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SYZ insiders have bought more shares than they have sold 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

Sylogist Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sylogist Ltd.
  • Ticker: SYZ
  • Exchange: TSXV
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: CA$260.493m
  • Shares outstanding: 23.75m
  • Website: https://www.sylogist.com

Number of Employees


Location

  • Sylogist Ltd.
  • 5 Richard Way SW
  • Suite 102
  • Calgary
  • Alberta
  • T3E 7M8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYZTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 1998
SYZL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1998
1WLBST (Boerse-Stuttgart)YesCommon SharesDEEUROct 1998

Biography

Sylogist Ltd., a software company, provides enterprise resource planning (ERP) solutions to local governments, non-profit and non-governmental organizations, education boards, and Districts and Defense and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:13
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.