OTCPK:TCYS.F

Stock Analysis Report

Executive Summary

Tecsys Inc. engages in the development, marketing, and sale of supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and order management in Canada, the United States, and internationally.

Rewards

Trading at 13.4% below its fair value

Earnings are forecast to grow 116.24% per year

Risk Analysis

No risks detected for TCYS.F from our risk checks.


Snowflake Analysis

Adequate 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: TCYS.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.8%

TCYS.F

1.7%

US Software

1.5%

US Market


1 Year Return

n/a

TCYS.F

42.3%

US Software

20.1%

US Market

Return vs Industry: Insufficient data to determine how TCYS.F performed against the US Software industry.

Return vs Market: Insufficient data to determine how TCYS.F performed against the US Market.


Shareholder returns

TCYS.FIndustryMarket
7 Day-6.8%1.7%1.5%
30 Day-6.8%7.7%1.4%
90 Dayn/a18.4%8.7%
1 Yearn/a43.9%42.3%22.7%20.1%
3 Year101.8%93.4%152.8%142.4%50.1%40.5%
5 Year127.2%112.4%224.7%201.5%73.1%54.1%

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

No news available

Valuation

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

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCYS.F ($15.85) is trading below our estimate of fair value ($18.31)

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


Price To Earnings Ratio

PE vs Industry: TCYS.F is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: TCYS.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCYS.F is overvalued based on its PB Ratio (7.2x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is Tecsys forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

116.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCYS.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TCYS.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TCYS.F's is expected to become profitable in the next 3 years.

Revenue vs Market: TCYS.F's revenue (10.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TCYS.F's revenue (10.4% 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 TCYS.F'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?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCYS.F is currently unprofitable.

Growing Profit Margin: TCYS.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TCYS.F is unprofitable, and losses have increased over the past 5 years at a rate of -5.3% per year.

Accelerating Growth: Unable to compare TCYS.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TCYS.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: TCYS.F has a negative Return on Equity (-0.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tecsys's financial position?


Financial Position Analysis

Short Term Liabilities: TCYS.F's short term assets (CA$39.7M) exceed its short term liabilities (CA$33.2M).

Long Term Liabilities: TCYS.F's short term assets (CA$39.7M) exceed its long term liabilities (CA$22.8M).


Debt to Equity History and Analysis

Debt Level: TCYS.F's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: TCYS.F's debt to equity ratio has increased from 19.5% to 29.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TCYS.F's debt is covered by short term assets (assets are 3.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TCYS.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TCYS.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TCYS.F's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TCYS.F's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: TCYS.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: TCYS.F is paying a dividend but the company is unprofitable.


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?

2.4yrs

Average management tenure


CEO

Peter Brereton 0

22.1yrs

Tenure

CA$1,221,936

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 ($USD922.07K) is about average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Brereton
Executive Chairman0yrsCA$589.64k23.27% CA$48.6m
Peter Brereton
CEO, President & Director22.1yrsCA$1.22m3.43% CA$7.2m
Mark Bentler
CFO & Secretary1.4yrsCA$352.39k0.026% CA$54.2k
Vito Calabretta
Senior Vice President of Global Operations2.7yrsCA$516.00kno data
Greg MacNeill
Senior Vice President of World Wide Sales0yrsCA$637.38kno data
Ho-Wo Cheong
Vice President of Mergers & Acquisitions0yrsCA$351.05kno data
Catherine Sigmar
Chief Legal Officer & VP of Strategic Initiatives4.7yrsno datano data
Laurie McGrath
Chief Marketing Officer2.1yrsno datano data
Patricia Barry
Vice President of Human Resources0yrsno datano data
Bill King
Chief Revenue Officer1.1yrsno datano data

2.4yrs

Average Tenure

Experienced Management: TCYS.F's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brereton
Executive Chairman0yrsCA$589.64k23.27% CA$48.6m
Peter Brereton
CEO, President & Director22.1yrsCA$1.22m3.43% CA$7.2m
Stephen Sasser
Independent Director10.8yrsCA$59.17k0.32% CA$670.3k
Frank Bergandi
Independent Director21.7yrsCA$59.17k0.017% CA$35.1k
Vernon Lobo
Independent Director13.3yrsCA$64.17k1.1% CA$2.3m
David Booth
Independent Director3.4yrsCA$59.17k0.043% CA$89.4k
David Wayland
Independent Director22.4yrsCA$74.17k0.12% CA$255.4k
John Ensign
Independent Director3.4yrsCA$64.17k0.019% CA$39.5k

13.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TCYS.F's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Tecsys Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tecsys Inc.
  • Ticker: TCYS.F
  • Exchange: OTCPK
  • Founded: 1983
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$276.692m
  • Listing Market Cap: CA$208.791m
  • Shares outstanding: 13.08m
  • 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 for distribution, warehousing, transportation logistics, point-of-use, and order management in Canada, the United States, and internationally. The company offers warehouse management, distribution and transportation management, supply management at point-of-use, and retail order management, as well as financial management and analytics solutions. It also provides demand planning and supply chain finance solutions; and implementation, system enhancement, cloud, advisory, consulting, education, and support services, as well as OneSprint, a preconfigured cloud-based warehouse management systems package. The company primarily serves the healthcare systems, services parts, third-party logistics, retail, and general wholesale distribution industries. Tecsys Inc. was founded in 1983 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:02
End of Day Share Price2020/02/13 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.