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TECSYS Inc. J (TSE:TCS)
TSX:TCS
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TECSYS Inc. J
(TSX:TCS)
73Outperform
TECSYS Inc. J (TCS) vs. S&P 500 (SPY)
Market Cap
C$582.00M
Dividend Yield0.79%
Average Volume (3M)14.86K
Price to Earnings (P/E)203.0
Beta (1Y)0.54
Revenue Growth2.61%
EPS Growth46.26%
CountryCA
Employees655
SectorTechnology
Sector Strength54
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.20
Shares Outstanding14,737,987
10 Day Avg. Volume8,165
30 Day Avg. Volume14,863
Financial Highlights & Ratios
PEG Ratio4.39
Price to Book (P/B)N/A
Price to Sales (P/S)3.42
Price to Cash Flow (P/CF)21.80
P/FCF Ratio22.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.25Price Target Upside24.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
TECSYS Inc. J Business Overview & Revenue Model
Company DescriptionTECSYS Inc. (TCS) is a leading provider of supply chain management and enterprise software solutions. The company operates primarily in the healthcare, distribution, and retail sectors, offering a comprehensive suite of products including warehouse management, transportation management, and order management systems. TECSYS is known for its innovative solutions that help organizations streamline operations, enhance efficiency, and improve customer satisfaction.
How the Company Makes MoneyTECSYS Inc. generates revenue through the sale of its software solutions and services. The company's primary revenue streams come from software licensing, subscription fees for its cloud-based solutions, and professional services such as consulting, implementation, and support. TECSYS also engages in strategic partnerships with technology providers to enhance its offerings and expand its market reach. These partnerships, along with a focus on recurring revenue models such as software-as-a-service (SaaS), contribute significantly to the company's earnings.
TECSYS Inc. J Financial Statement Overview
Summary
TECSYS Inc. exhibits strong growth and cash flow management capabilities, with solid revenue and gross profit margins. While profitability measures such as net profit margin and return on equity are areas for potential improvement, the company's strong equity position and effective cash flow management underscore its financial stability in the software industry.Income Statement
TECSYS Inc. has demonstrated strong revenue growth, with a consistent increase from $104.9M in 2020 to $173.5M in TTM (Trailing-Twelve-Months) 2025. The gross profit margin is solid at 46.7% for TTM 2025, showing efficient cost management. While the net profit margin improved to 1.7% in TTM 2025, it remains relatively low, indicating potential challenges in managing operational expenses.85
Very Positive
Balance Sheet
The company maintains a healthy equity ratio of 46.4% in TTM 2025, indicating a strong equity base. The debt-to-equity ratio is low at 0.03, reflecting prudent financial leverage. However, the return on equity has decreased to 5.0% in TTM 2025, suggesting room for improvement in generating returns on shareholders' equity.78
Positive
Cash Flow
TECSYS Inc. has shown an impressive free cash flow growth rate and maintained a positive operating cash flow to net income ratio at 3.99 in TTM 2025, indicating robust cash flow generation relative to net income. The free cash flow to net income ratio is 1.38, highlighting efficient cash management.82
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 173.55M | 171.24M | 152.42M | 137.20M | 123.10M | 104.86M | Gross Profit |
| 80.98M | 75.80M | 66.81M | 60.31M | 60.63M | 50.32M | EBIT |
| 4.37M | 1.93M | 3.57M | 5.38M | 10.68M | 4.71M | EBITDA |
| 6.67M | 5.72M | 4.58M | 6.75M | 12.96M | 6.69M | Net Income Common Stockholders |
| 3.01M | 1.85M | 2.09M | 4.48M | 7.19M | 2.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 32.58M | 35.57M | 37.07M | 43.24M | 45.85M | 37.53M | Total Assets |
| 129.32M | 128.05M | 126.92M | 125.84M | 129.31M | 124.43M | Total Debt |
| 1.51M | 2.11M | 2.91M | 14.24M | 18.76M | 20.91M | Net Debt |
| -19.45M | -16.74M | -18.32M | -8.76M | -6.99M | -6.62M | Total Liabilities |
| 69.31M | 59.68M | 56.48M | 57.16M | 62.22M | 63.31M | Stockholders Equity |
| 60.00M | 68.37M | 70.44M | 68.68M | 67.09M | 61.12M |
| Cash Flow | Free Cash Flow | ||||
| 4.15M | 3.24M | 5.97M | 2.88M | 17.58M | 8.88M | Operating Cash Flow |
| 11.99M | 4.86M | 7.76M | 4.94M | 19.11M | 10.01M | Investing Cash Flow |
| 3.43M | -1.47M | -1.11M | -2.38M | -13.75M | -13.25M | Financing Cash Flow |
| -11.17M | -5.76M | -8.42M | -5.31M | -7.14M | 15.86M |
TECSYS Inc. J Technical Analysis
Negative
39.49
Price Trends
43.83
Negative
43.94
Negative
41.63
Negative
Market Momentum
-1.07
Negative
39.62
Neutral
38.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCS, the sentiment is Negative. The current price of 39.49 is below the 20-day moving average (MA) of 41.32, below the 50-day MA of 43.83, and below the 200-day MA of 41.63, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TCS.
TECSYS Inc. J Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.66B | 65.35 | 10.92% | ― | 15.98% | 21.64% | |
79 Outperform | C$3.52B | 43.70 | 7.09% | ― | 33.74% | 61.09% | |
76 Outperform | $1.51B | 17.28 | 14.76% | 4.02% | 8.11% | 15.83% | |
73 Outperform | C$582.00M | 203.00 | 4.56% | 0.79% | 2.61% | 46.26% | |
68 Neutral | C$4.45B | 157.81 | -0.10% | ― | 14.85% | -105.25% | |
63 Neutral | C$98.45B | 99.47 | 30.90% | 0.12% | 21.56% | 31.90% | |
58 Neutral | $21.97B | 10.63 | -18.43% | 2.40% | 4.67% | -24.47% |
* Technology Sector Average
Performance Comparison
TSE:TCS
TECSYS Inc. J
39.49
1.21
3.16%
TSE:ENGH
Enghouse Systems
27.11
-2.34
-7.95%
TSE:DSG
The Descartes Systems Group
147.83
23.93
19.31%
TSE:KXS
Kinaxis Inc
158.30
4.30
2.79%
TSE:CSU
Constellation Software
4,662.09
965.78
26.13%
TSE:MDA
MDA Ltd
28.81
14.10
95.85%
TECSYS Inc. J Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -9.18% | Next Earnings Date: Jun 26, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong revenue growth in SaaS and professional services, as well as impressive healthcare market wins. However, there are concerns about the decline in bookings compared to last year and the guidance being at the lower end of expectations due to market uncertainties.Highlights
Record Revenue Quarter
Tecsys achieved record revenue for the quarter at $45.2 million, marking a 3% increase from the same quarter last year, with a 9% increase when excluding hardware sales.
Strong SaaS Revenue Growth
SaaS revenue grew by 22% in the quarter, reaching $17.3 million. When adjusting for last year's one-time revenue recognition, growth would be approximately 28%.
Professional Services Bookings Surge
Professional services bookings reached a record $24.4 million, up 170% from the same quarter last year, with the pipeline now at a record level.
Adjusted EBITDA Increase
Adjusted EBITDA rose by 34% compared to the previous year, reaching $3.5 million for the quarter.
Healthcare Market Wins
Notable momentum in healthcare with two new health system wins in the U.S. and Canada, and continued demand for pharmacy solutions.
Lowlights
Decline in Bookings Compared to Prior Year
Quarterly bookings were $4 million, which is down compared to Q3 last year, although up 31% on a last 12 months basis.
SaaS Revenue and EBITDA Guidance at Lower End
Based on the timing of bookings, SaaS revenue and EBITDA margins are expected to be at the lower end of the guidance range for fiscal year 2025.
Market and Political Uncertainties
Concerns about potential impacts from international trade tensions and possible Medicaid cuts in the U.S., though no immediate effects have been observed.
Company Guidance
During Tecsys' Third Quarter Fiscal Year 2025 results call, the company reported a record total revenue of $45.2 million, marking a 3% increase from the same quarter last year, with SaaS revenue growing by 22% to $17.3 million. Adjusted EBITDA also saw a significant increase of 34% compared to the previous year, reaching $3.5 million for the quarter. Key highlights included strong SaaS revenue growth of 29% year-to-date, professional services revenue reaching $13.9 million, and SaaS bookings diversified across markets. The company's RPO stands at $210 million, and they have maintained their fiscal 2025 guidance for SaaS revenue growth at 30% to 32% and adjusted EBITDA margins at 8% to 9%. The call also emphasized strong momentum in healthcare, with significant new health system wins and a robust pipeline in pharmacy solutions. Additionally, Tecsys announced a $1.7 million share buyback under their normal course issuer bid and a quarterly dividend of $0.085 per share.TECSYS Inc. J Corporate Events
Stock BuybackFinancial Disclosures
Tecsys Achieves Record Revenue in Q3 2025 Driven by SaaS Growth
Positive
Mar 5, 2025
Tecsys Inc. reported record revenue for the third quarter of fiscal 2025, driven by a 22% increase in SaaS revenue and strong growth across key sectors. The company’s total revenue reached $45.2 million, with net profit rising to $1.2 million. The SaaS business showed significant momentum, with a 34% increase in Remaining Performance Obligation and a 33% year-to-date increase in Adjusted EBITDA. Tecsys also continued its Normal Course Issuer Bid, acquiring 38,200 shares for approximately $1.7 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.