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TSS (TSSI)
:TSSI
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TSS
(NASDAQ:TSSI)
80Outperform
TSS (TSSI) vs. S&P 500 (SPY)
Market Cap
$185.40M
Dividend YieldN/A
Average Volume (3M)1.05M
Price to Earnings (P/E)33.0
Beta (1Y)2.84
Revenue Growth199.30%
EPS GrowthN/A
CountryUS
Employees81
SectorTechnology
Sector Strength44
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding22,472,675
10 Day Avg. Volume908,260
30 Day Avg. Volume1,050,538
Financial Highlights & Ratios
PEG Ratio0.00390
Price to Book (P/B)N/A
Price to Sales (P/S)5.71
Price to Cash Flow (P/CF)N/A
P/FCF Ratio197.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TSS Business Overview & Revenue Model
Company DescriptionTSS, Inc. provides services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013. TSS, Inc. was incorporated in 2004 and is headquartered in Round Rock, Texas.
How the Company Makes Moneynull
TSS Financial Statement Overview
Summary
TSS exhibits strong financial health, supported by impressive revenue growth, improving profit margins, and robust cash flow generation. While the balance sheet shows prudent leverage and efficient equity use, the company could benefit from bolstering equity levels to enhance financial resilience. Overall, TSS is on a positive trajectory, well-positioned for continued growth in the construction industry.Income Statement
The company shows a strong revenue growth trend with a significant increase in total revenue from the previous annual report to the TTM period, indicating robust sales performance. The gross profit margin stands at a healthy 14.81% for TTM, and net profit margin improves to 3.59% from a marginal 0.14% previously. The company's EBIT and EBITDA margins are also improving, showcasing operational efficiency gains. However, historical volatility in net income indicates some risk in maintaining stable profitability.85
Very Positive
Balance Sheet
TSS demonstrates a stable balance sheet with a low debt-to-equity ratio of 0.51, indicating conservative leverage. The equity ratio of 11.38% shows that a modest portion of the company's assets is financed by equity, which is typical in the construction industry. Return on equity has improved significantly to 57.48%, reflecting efficient use of shareholder capital. However, overall equity levels remain relatively low, which could pose a risk if financial conditions tighten.78
Positive
Cash Flow
The company reports strong cash flow performance with an impressive free cash flow growth rate and a high free cash flow to net income ratio. The operating cash flow to net income ratio is also robust, indicating healthy cash generation relative to reported earnings. The positive cash flow trends underscore TSS's ability to sustain operations and fund growth initiatives from internal sources, although historical fluctuations in operating cash flow warrant caution.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 122.53M | 54.40M | 30.64M | 27.41M | 45.06M | 32.78M | Gross Profit |
| 18.14M | 11.00M | 8.98M | 6.36M | 6.80M | 6.59M | EBIT |
| 6.47M | 1.75M | 914.00K | -831.00K | -400.00K | 480.00K | EBITDA |
| 6.94M | 2.07M | 1.30M | -266.00K | 1.02M | 850.00K | Net Income Common Stockholders |
| 4.40M | 74.00K | -73.00K | -1.30M | 79.00K | 126.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.11M | 11.83M | 20.40M | 7.99M | 19.01M | 8.68M | Total Assets |
| 27.33M | 25.60M | 31.41M | 19.28M | 23.81M | 17.57M | Total Debt |
| 3.07M | 4.32M | 4.78M | 7.61M | 3.19M | 3.63M | Net Debt |
| -3.04M | -7.51M | -15.62M | -387.00K | -15.82M | -5.05M | Total Liabilities |
| 22.15M | 22.05M | 28.47M | 17.08M | 20.63M | 14.70M | Stockholders Equity |
| 5.19M | 3.55M | 2.93M | 2.20M | 3.18M | 2.87M |
| Cash Flow | Free Cash Flow | ||||
| 18.31M | -8.53M | 14.18M | -10.52M | 9.60M | 2.42M | Operating Cash Flow |
| 20.10M | -8.27M | 14.71M | -10.45M | 10.00M | 3.02M | Investing Cash Flow |
| -1.78M | -257.00K | -536.00K | -64.00K | -396.00K | -419.00K | Financing Cash Flow |
| -569.00K | -40.00K | -1.77M | -504.00K | 733.00K | -96.00K |
TSS Technical Analysis
Negative
7.85
Price Trends
11.85
Negative
10.98
Negative
7.67
Positive
Market Momentum
-0.82
Negative
35.68
Neutral
11.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSSI, the sentiment is Negative. The current price of 7.85 is below the 20-day moving average (MA) of 9.20, below the 50-day MA of 11.85, and above the 200-day MA of 7.67, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 35.68 is Neutral, neither overbought nor oversold. The STOCH value of 11.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSSI.
TSS Risk Analysis
TSS disclosed 23 risk factors in its most recent earnings report. TSS reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TSS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.82T | 30.51 | 34.29% | 0.83% | 15.04% | 12.38% | |
80 Outperform | $185.40M | 33.00 | 111.84% | ― | 199.30% | ― | |
79 Outperform | $167.44B | 55.97 | 17.43% | 0.65% | 13.73% | 9.93% | |
75 Outperform | $164.39B | 25.26 | 47.28% | ― | 10.65% | 44.84% | |
75 Outperform | $259.44B | 42.43 | 10.26% | 0.59% | 8.72% | 51.47% | |
73 Outperform | $34.28B | 11.94 | 14.50% | ― | 10.06% | 38060.98% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% |
* Technology Sector Average
Performance Comparison
TSSI
TSS
7.85
7.27
1253.45%
ADBE
Adobe
383.53
-115.68
-23.17%
INTU
Intuit
613.99
-8.78
-1.41%
MSFT
Microsoft
375.39
-42.86
-10.25%
CRM
Salesforce
268.36
-34.35
-11.35%
XYZ
Block
54.33
-24.88
-31.41%
TSS Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -7.76% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant growth in revenue, profitability, and strategic expansions, despite some increases in costs impacting net income.Highlights
Exceptional Year for TSS
TSS achieved organic revenue growth of 172% for the full year 2024, with diluted earnings per share increasing from breakeven in 2023 to $0.24.
Robust Growth in Procurement Services
The Procurement Services segment saw revenue growth of 205%, reaching $117.5 million compared to $36.5 million in 2023.
Expansion of Facilities and Capabilities
TSS signed a multiyear lease for a new 213,000 square foot facility, increasing operating space by over 100% to support AI-driven demand.
Record Q4 Financial Performance
Q4 revenue reached $50 million, a 105% increase year-over-year, with a 300% increase in diluted earnings per share to $0.08.
Strong Cash Flow and Profitability
For 2024, TSS generated positive cash flow from operations of over $15 million and improved net income to $6 million from $74,000 in 2023.
Lowlights
High SG&A Expenses
SG&A expenses increased to $4.2 million in Q4 2024, up from $2.5 million in the year-ago quarter, due to investments in capacity and processes.
Interest Expenses Impacting Net Income
Net interest expense for Q4 2024 was $533,000, impacting net income, primarily due to interest tied to factoring receivables.
Company Guidance
In the fourth quarter of 2024, TSS, Inc. demonstrated strong financial performance driven by significant growth across all segments. The company delivered a 172% increase in organic revenue for the full year, reaching $148.1 million, compared to $54.4 million in the previous year. Diluted earnings per share surged from breakeven in 2023 to $0.24 in 2024, with a positive cash flow from operations exceeding $15 million. The procurement services segment saw a remarkable revenue growth of 205%, totaling $117.5 million. Facilities management, representing 5% of total revenue, grew by 13%, maintaining high gross margins above 50%. The integration services business, including AI racks, experienced a 157% revenue increase to $22.6 million. The company also reported a 105% year-over-year increase in Q4 revenue to $50 million, with diluted EPS for the quarter growing by 300% to $0.08. TSS's improved visibility into future orders and strategic initiatives, like the expansion into a new 213,000 square foot facility, positions it well for continued success in 2025, with anticipated adjusted EBITDA growth of at least 50% over 2024.TSS Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TSS Appoints Michael Fahy, Eyes Global Growth and AI Leadership
Positive
Oct 8, 2024
Michael Fahy has joined TSS, Inc. as an independent director, bringing extensive leadership experience from Neovia Logistics and DB Schenker Americas. Known for driving digital transformation and revenue growth, Fahy’s expertise is expected to significantly contribute to TSS’s growth strategy, particularly in AI and high-performance computing infrastructure. His appointment is seen as a strategic move to leverage his global insights and operational skills to enhance TSS’s capabilities and market position.
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.