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Sylogist Ltd (TSE:SYZ)
:SYZ
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Sylogist
(TSX:SYZ)68Neutral
Sylogist (SYZ) vs. S&P 500 (SPY)
Market Cap
C$214.99M
Dividend Yield0.43%
Average Volume (3M)71.51K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth-13.99%
EPS Growth-421.95%
CountryCA
Employees200
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-0.05
Shares Outstanding23,393,476
10 Day Avg. Volume43,211
30 Day Avg. Volume71,510
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.23
Price to Cash Flow (P/CF)5.50
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$14.00Price Target Upside52.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Sylogist Business Overview & Revenue Model
Company DescriptionSylogist Ltd is a software company that provides Enterprise Resource Planning solutions, including fund accounting, grant management and payroll to public service organizations. The company operates in one business segment that is the Public Sector. It receives maximum revenue in the form of subscription maintenance. Geographically, the company offers its services to the United States of America, Canada, and the United Kingdom region. The majority of the revenue comes from the United States of America.
How the Company Makes MoneySylogist makes money primarily through the sale of its software solutions and related services. Its revenue model is based on software licensing fees, which can be perpetual or subscription-based, depending on the client's preference. In addition to licensing, the company generates revenue from professional services such as software implementation, customization, training, and ongoing support. Sylogist also offers cloud-based solutions, which provide recurring revenue streams through subscription models. Strategic partnerships with other technology providers and a strong focus on customer retention contribute significantly to its earnings by enhancing its solution offerings and maintaining long-term client relationships.
Sylogist Financial Statement Overview
Summary
Sylogist demonstrates solid profitability and cash flow generation, with a strong gross profit margin and effective cash conversion. However, recent revenue declines and growing debt levels are concerns, suggesting the need for revitalizing growth and managing leverage.Income Statement
Sylogist has shown consistent profitability with a strong gross profit margin and reasonable net profit margin. However, the revenue growth has been negative recently, indicating potential challenges in expanding sales. EBIT and EBITDA margins remain healthy, but the decline in these metrics year-over-year suggests a need to enhance operational efficiency.74
Positive
Balance Sheet
The company maintains a solid equity base, evident from its favorable equity ratio. However, the debt-to-equity ratio has increased, highlighting a growing reliance on debt financing. Return on equity has decreased, indicating reduced profitability from shareholder investments.68
Positive
Cash Flow
Sylogist showcases strong free cash flow generation, although there has been a decline in free cash flow growth recently. The operating cash flow to net income ratio remains robust, reflecting effective cash management. The free cash flow to net income ratio is positive, underscoring the company's ability to convert earnings into cash.72
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Sep 2021 | Sep 2020 | Sep 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 65.51M | 69.00M | 38.67M | 38.08M | 37.61M | Gross Profit |
| 29.39M | 30.63M | 27.96M | 28.05M | 28.49M | EBIT |
| 908.00K | 2.48M | 7.72M | 3.34M | 13.39M | EBITDA |
| 11.05M | 15.41M | 14.50M | 7.64M | 17.18M | Net Income Common Stockholders |
| 1.10M | 2.54M | 4.37M | 1.92M | 10.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.61M | 14.54M | 29.59M | 42.80M | 53.10M | Total Assets |
| 96.58M | 103.06M | 98.03M | 70.96M | 78.19M | Total Debt |
| 17.74M | 21.97M | 19.03M | 498.00K | 0.00 | Net Debt |
| 6.13M | 7.43M | -10.56M | -42.30M | -53.10M | Total Liabilities |
| 58.98M | 63.16M | 51.34M | 19.08M | 19.69M | Stockholders Equity |
| 37.60M | 39.91M | 46.69M | 51.87M | 58.50M |
| Cash Flow | Free Cash Flow | |||
| 4.75M | 9.32M | 17.99M | 2.53M | 16.37M | Operating Cash Flow |
| 9.93M | 12.65M | 18.82M | 3.48M | 16.99M | Investing Cash Flow |
| -5.18M | -17.73M | -38.40M | -3.96M | 70.00K | Financing Cash Flow |
| -7.47M | -9.95M | 7.77M | -10.16M | 4.41M |
Sylogist Technical Analysis
Negative
9.19
Price Trends
9.49
Negative
9.97
Negative
10.20
Negative
Market Momentum
-0.09
Positive
40.34
Neutral
17.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SYZ, the sentiment is Negative. The current price of 9.19 is below the 20-day moving average (MA) of 9.82, below the 50-day MA of 9.49, and below the 200-day MA of 10.20, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 17.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SYZ.
Sylogist Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$103.15B | 119.28 | 23.93% | 0.11% | 23.24% | 21.95% | |
72 Outperform | C$4.39B | 157.81 | 0.01% | ― | 14.85% | -105.25% | |
68 Neutral | C$214.99M | ― | -3.34% | 0.43% | -13.99% | -421.95% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
TSE:SYZ
Sylogist
9.42
0.86
10.05%
OTEX
Open Text
26.01
-11.65
-30.93%
DSGX
The Descartes Systems Group
110.92
19.33
21.10%
TSE:CSU
Constellation Software
4,988.92
1,145.66
29.81%
TSE:KXS
Kinaxis Inc
160.17
12.17
8.22%
EGHSF
Enghouse Systems
18.25
-7.07
-27.92%
Sylogist Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -18.17% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong growth in bookings, SaaS ARR, and partner channel expansion, demonstrating successful execution of strategic initiatives. Despite some anticipated decreases in project services revenue and a slight dip in NRR, the overall financial transformation and positive outlook suggest solid progress and future potential.Highlights
Strong Bookings Growth
Q3 saw a 14% year-over-year bookings growth, with nearly 40% of bookings from the SylogistEd sector. The bookings pipeline increased by 122% year-over-year.
Partner Channel Expansion
Partner attached bookings grew more than 700% year-over-year and 52% quarter-over-quarter. Partner attached bookings represented almost 50% of total bookings.
SaaS ARR and NRR Growth
SaaS ARR increased by 13% year-over-year to just shy of $30 million, and SaaS NRR came in at a healthy 107%.
SylogistMission and SylogistEd Growth
SylogistMission segment grew at 15% year-over-year, and SylogistEd segment grew by 10% year-over-year.
Successful Transition to SaaS Model
The company has successfully transitioned to a SaaS-driven enterprise with growing recurring revenue and an expanding partner network.
Mission CRM Acquisition Success
ARR for Mission CRM at the three-year mark is $1.9 million, compared to $140,000 at acquisition in October 2021, marking a compounded annual growth of approximately 141%.
Lowlights
Decrease in Project Services Revenue
There was an anticipated decrease in project services revenue due to the strategic shift to a partner-led delivery model.
Slight Dip in SylogistEd NRR
A slight dip in NRR quarter-over-quarter was noted, attributed to strategic attrition in the legacy customer base.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin for Q3 2024 was 25.3%, compared to 27.2% in Q3 2023.
Company Guidance
During the Q3 2024 earnings call for Sylogist Ltd., the executive team shared a robust set of metrics demonstrating the company's strong financial performance and strategic progress. The company reported a 14% year-over-year growth in bookings, with nearly 40% of these bookings originating from the SylogistEd sector. The success of their competitor displacement strategy was evident, contributing to an impressive win rate of over 70% in the quarter. Furthermore, the bookings pipeline grew by 122% year-over-year, and partner-attached bookings surged by more than 700% year-over-year, representing almost 50% of total bookings in Q3 2024. The SaaS Annual Recurring Revenue (ARR) saw a 13% increase, reaching nearly $30 million, while the SaaS Net Revenue Retention (NRR) stood at 107%. The company also achieved a gross profit margin of 60% and maintained an adjusted EBITDA margin of 25.3%. These metrics underscore Sylogist's successful transition to a SaaS-driven enterprise and its strategic focus on long-term value creation.Sylogist Corporate Events
Sylogist Reports Strong Q3 2024 Results
Nov 7, 2024
Sylogist Ltd. reported impressive Q3 2024 results with a 15% increase in SaaS revenue and record partner-attached bookings at 47%. The company is experiencing strong growth in its SaaS business, supported by its partner community and a strong pipeline from its mission, education, and government sectors.
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.