TSXV:SYZ

Stock Analysis Report

Executive Summary

Sylogist Ltd. provides enterprise resource planning (ERP) solutions to local governments, non-profit and non-governmental organizations, and K-12 education markets in Canada, the United States, the United Kingdom, and internationally.

Rewards

Trading at 38.8% below its fair value

Revenue is forecast to grow 8.34% per year

Earnings have grown 35.5% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

SYZ

-0.5%

CA IT

0.1%

CA Market


1 Year Return

-23.4%

SYZ

27.8%

CA IT

12.1%

CA Market

Return vs Industry: SYZ underperformed the Canadian IT industry which returned 27.8% over the past year.

Return vs Market: SYZ underperformed the Canadian Market which returned 12.1% over the past year.


Shareholder returns

SYZIndustryMarket
7 Day-4.9%-0.5%0.1%
30 Day-5.9%3.3%0.2%
90 Day-13.2%5.4%0.7%
1 Year-20.7%-23.4%27.9%27.8%15.9%12.1%
3 Year0.2%-9.4%70.7%70.4%16.0%5.4%
5 Year13.7%-5.1%144.9%144.1%33.5%13.8%

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?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYZ (CA$9.5) is trading below our estimate of fair value (CA$15.52)

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


Price To Earnings Ratio

PE vs Industry: SYZ is good value based on its PE Ratio (17.4x) compared to the IT industry average (30.2x).

PE vs Market: SYZ is poor value based on its PE Ratio (17.4x) compared to the Canadian market (15.2x).


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 overvalued based on its PB Ratio (3.9x) compared to the CA IT industry average (2.5x).


Next Steps

Future Growth

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

8.3%

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 (1.4%).

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 (8.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: SYZ's revenue (8.3% 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 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?

35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYZ has a large one-off gain of CA$2.7M impacting its June 30 2019 financial results.

Growing Profit Margin: SYZ's current net profit margins (32.1%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: SYZ's earnings have grown significantly by 35.5% per year over the past 5 years.

Accelerating Growth: SYZ's earnings growth over the past year (14.1%) is below its 5-year average (35.5% per year).

Earnings vs Industry: SYZ earnings growth over the past year (14.1%) underperformed the IT industry 16.1%.


Return on Equity

High ROE: SYZ's Return on Equity (20.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sylogist's financial position?


Financial Position Analysis

Short Term Liabilities: SYZ's short term assets (CA$52.4M) exceed its short term liabilities (CA$14.1M).

Long Term Liabilities: SYZ's short term assets (CA$52.4M) exceed its long term liabilities (CA$2.5M).


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

Inventory Level: SYZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SYZ's debt is covered by short term assets.


Next Steps

Dividend

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

4.21%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.0%markettop25%5.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SYZ's dividend (4.21%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: SYZ's dividend (4.21%) is low compared to the top 25% of dividend payers in the Canadian market (5.65%).


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 reasonable payout ratio (66.9%), SYZ's dividend payments are 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

What is the CEO of Sylogist's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Jim Wilson 0

11.6yrs

Tenure

CA$2,279,403

Compensation

Mr. James D. Wilson, also known as Jim, has been Chief Executive Officer and President of Sylogist Ltd. since May 8, 2008. Mr. Wilson has been the President of Joss Capital Corp., a private investment and  ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.73M) is above average for companies of similar size in the Canadian market ($USD682.64K).

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


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: SYZ's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

Experienced Board: SYZ's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: SYZ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$10,24508 Nov 19
C. Elliott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$10.25
BuyCA$5,02501 Nov 19
James Wilson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500
Max PriceCA$10.05
BuyCA$15,78030 Oct 19
James Wilson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,600
Max PriceCA$9.95
BuyCA$10,00024 Oct 19
Taylor Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$10.00
BuyCA$13,39220 Jun 19
Taylor Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceCA$11.16
SellCA$2,230,00019 Jun 19
David O. Elder
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares200,000
Max PriceCA$11.15
SellCA$79,87019 Jun 19
James Wilson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,000
Max PriceCA$11.41
BuyCA$22,27011 Jun 19
C. Elliott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$11.13
BuyCA$25,74029 May 19
Xavier Shorter
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares2,200
Max PriceCA$11.70
BuyCA$23,80027 May 19
Andre Drouillard
EntityIndividual
Role
Head of Investor Relations
Vice President of Business Development & Investor Relations
Shares2,000
Max PriceCA$11.90
SellCA$474,00022 May 19
James Wilson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares39,500
Max PriceCA$12.00
SellCA$1,200,00017 May 19
David O. Elder
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares100,000
Max PriceCA$12.00
SellCA$1,200,00017 May 19
James Wilson
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100,000
Max PriceCA$12.00
BuyCA$44,46022 Mar 19
David O. Elder
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares3,600
Max PriceCA$12.35
BuyCA$17,29018 Mar 19
David O. Elder
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares1,400
Max PriceCA$12.35

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Wilson

    Chairman

    • Tenure: 11.6yrs
    • Compensation: CA$2.28m
  • Malgorzata Lewandowski

    Corporate Controller & Treasurer

    • Tenure: 0yrs
    • Compensation: CA$291.88k
  • Dave Elder

    Executive VP

    • Tenure: 11.5yrs
    • Compensation: CA$1.16m
  • Xavier Shorter

    VP of Finance & CFO

    • Tenure: 3.2yrs
    • Compensation: CA$411.94k
  • Andre Drouillard

    Vice President of Business Development & Investor Relations

    • Tenure: 2.5yrs
    • Compensation: CA$413.49k
  • Donna Smiley

    Vice President of Operations

    • Tenure: 0.9yrs
    • Compensation: CA$289.76k

Board Members

  • C. Elliott (62yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$40.00k
  • Jim Wilson

    Chairman

    • Tenure: 11.6yrs
    • Compensation: CA$2.28m
  • Ron Cherkas

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: CA$40.00k
  • Dave Elder

    Executive VP

    • Tenure: 11.5yrs
    • Compensation: CA$1.16m
  • Taylor Gray

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: CA$158.90k
  • Barry Foster

    Independent Director

    • Tenure: 0.4yrs

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$228.257m
  • Shares outstanding: 23.78m
  • 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. provides enterprise resource planning (ERP) solutions to local governments, non-profit and non-governmental organizations, and K-12 education markets in Canada, the United States, the United  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:36
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.