Sylogist (SYZ) AI Stock Analysis

• Market Cap: C$94.45M
• Dividend Yield: 0.71%
• Average Volume (3M): 48.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -4.89%
• EPS Growth: -143.94%
• Country: CA
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 23,379,677
• 10 Day Avg. Volume: 49,775
• 30 Day Avg. Volume: 48,898
• PEG Ratio: 1.71
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 3.16
• P/FCF Ratio: 17.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$9.50
• Price Target Upside: 68.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$4.50 ▼(-20.35% Downside)

Sylogist's overall stock score reflects solid financial performance with strong revenue and cash flow growth, but challenges in profitability and return on equity. Technical indicators suggest a bearish trend, and valuation metrics highlight concerns with profitability. The earnings call provided positive insights into SaaS growth and partnerships, but these were tempered by declines in other revenue segments.

Positive Factors

SaaS ARR & recurring revenue mix

Higher SaaS mix and 15% ARR growth materially improve revenue predictability and reduce reliance on lumpy project fees. A larger recurring base strengthens customer lifetime value, smooths cash flows, and supports scalable, subscription-driven growth over the next several quarters.

Strong free cash flow generation

A large improvement in free cash flow and a meaningful quarterly cash addition bolster financial flexibility. Sustained cash generation supports reinvestment in product, partnership expansion, debt service or strategic M&A without immediate dilution, aiding durable growth execution.

Robust gross and EBITDA margins

High gross margins and a healthy EBITDA margin reflect software economics and operating leverage. These margins provide room to invest in R&D and sales while preserving core profitability as SaaS scale expands, supporting sustainable margin conversion over time.

Negative Factors

Negative net income / profitability

Despite revenue and cash-flow gains, a net loss indicates core profitability weaknesses. Persistent negative net income erodes retained earnings and constrains internally funded investments, increasing reliance on cash reserves or external capital to fund growth and operations.

Adjusted EBITDA margin compression

A notable EBITDA margin decline driven by lower project services and reduced capitalized development signals margin pressure during the transition to partner-led delivery. If sustained, this reduces cash available for reinvestment and weakens operating leverage benefits of SaaS growth.

Declining return on equity

Falling ROE points to inefficiencies in turning shareholder capital into profits. With moderate leverage, this suggests operational performance—not excessive leverage—is limiting returns, necessitating improved margins or asset efficiency to drive durable shareholder value.

Sylogist Business Overview & Revenue Model

Company Description

Sylogist Ltd., a software company, provides enterprise resource planning (ERP) solutions in Canada, the United States, the United Kingdom, and internationally. It offers Serenic Navigator solutions, including accounting and financial management, award and budget management, payroll and human resources, analytics and decision support, reporting, deposits and loans, and field connect products. The company also provides NaviPayroll, an integrated payroll management and human resources solution; NaviTrak, a manufacturing and distribution solution; and NaviView terminal, a touch-screen terminal that runs various application. In addition, it offers NaviNet that captures data from various shop floor systems and data collection devices, and distributes processed data to a multitude of systems, including ERP and enterprise systems; and NaviBridge, a suite of integration and administration tool to setup, integrate, monitor, and manage data transfers between ERP and legacy systems, distributed mobile systems, and web-based applications. Further, the company offers InfoStrat public sector solutions, including enterprise level case management, grantor money management, justice solutions, and professional services. It serves local governments, non-profit and non-governmental organizations, and education boards, as well as districts, defense, and safety contractors. Sylogist Ltd. was incorporated in 1993 and is headquartered in Calgary, Canada.

How the Company Makes Money

Sylogist generates revenue primarily through the sale of software licenses, subscription fees for its cloud-based services, and maintenance and support contracts. Key revenue streams include recurring subscriptions from existing clients, which provide stable and predictable income, as well as one-time fees for software implementation and training services. The company also benefits from significant partnerships with technology providers and service integrators, enhancing its market reach and enabling it to offer comprehensive solutions tailored to client needs. The growth of its customer base, particularly in the public sector, and the increasing demand for digital transformation in government services contribute positively to Sylogist's earnings.

Sylogist Financial Statement Overview

Summary

Sylogist demonstrates solid revenue growth and cash flow generation, but faces challenges with profitability and return on equity. The balance sheet remains stable with moderate leverage, providing a foundation for future growth. Continued focus on improving operational efficiency and profitability will be crucial for enhancing financial performance.

Income Statement

Sylogist's revenue growth rate of 12.8% in the latest year indicates a positive trajectory, although the company experienced a net loss, resulting in a negative net profit margin. The gross profit margin remains strong at 58.7%, and the EBITDA margin is healthy at 16.8%. However, the decline in EBIT margin suggests challenges in operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.51, indicating balanced leverage. The equity ratio is 38.4%, reflecting a stable capital structure. However, the return on equity has decreased over the years, pointing to potential inefficiencies in generating returns from equity.

Cash Flow

Sylogist shows a significant improvement in free cash flow growth at 152.8%, and the operating cash flow to net income ratio is strong, indicating effective cash generation relative to earnings. The free cash flow to net income ratio is also robust, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.19M	65.60M	65.51M	69.00M	38.67M	38.08M
Gross Profit	34.70M	38.55M	29.39M	30.63M	27.96M	28.05M
EBITDA	10.09M	11.05M	11.05M	15.41M	14.50M	7.64M
Net Income	-3.01M	-727.00K	1.10M	2.54M	4.37M	1.92M
Balance Sheet
Total Assets	91.26M	97.92M	96.58M	103.06M	98.03M	70.96M
Cash, Cash Equivalents and Short-Term Investments	14.09M	13.26M	11.61M	14.54M	29.59M	42.80M
Total Debt	19.09M	19.31M	17.74M	21.97M	19.03M	498.00K
Total Liabilities	58.67M	60.33M	58.98M	63.16M	51.34M	19.08M
Stockholders Equity	32.59M	37.59M	37.60M	39.91M	46.69M	51.87M
Cash Flow
Free Cash Flow	7.31M	12.17M	4.75M	9.32M	17.99M	2.53M
Operating Cash Flow	8.73M	12.23M	9.93M	12.65M	18.82M	3.48M
Investing Cash Flow	-5.86M	-8.91M	-5.18M	-17.73M	-38.40M	-3.96M
Financing Cash Flow	-1.76M	-1.70M	-7.47M	-9.95M	7.77M	-10.16M

Sylogist Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 5.65 is above the 20-day moving average (MA) of 5.44, above the 50-day MA of 5.51, and below the 200-day MA of 7.35, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 14.57 is Positive, neither overbought nor oversold. The STOCH value of 3.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THNC	65 Neutral	C$138.08M	362.50	0.65%	―	14.05%	-62.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYZ	61 Neutral	C$94.45M	-31.37	-8.89%	0.71%	-4.89%	-143.94%
URL	55 Neutral	C$152.98M	141.46	24.43%	―	20.62%	21.78%
XTRA	52 Neutral	C$146.67M	-11.35	-108.12%	―	-12.14%	4.41%
WNDR	51 Neutral	C$192.88M	-5.54	-31.23%	―	13.16%	-1375.61%
IMP	46 Neutral	C$125.58M	-41.81	-14.10%	―	48.18%	-401.19%

Sylogist Corporate Events

Sylogist Names Craig O’Neill Interim CEO as Bill Wood Departs

Sylogist has announced a leadership transition, with Bill Wood stepping down as president, CEO, and director, and the board appointing former director Craig O’Neill as interim president and CEO effective January 28, 2026. The board emphasizes O’Neill’s track record in building SaaS businesses and his alignment with Sylogist’s existing strategy, positioning the move as a way to ensure stability, maintain operational momentum, and support the company’s ongoing shift toward a SaaS-focused, growth-oriented model while a comprehensive search for a permanent chief executive is conducted.

The most recent analyst rating on (TSE:SYZ) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Sylogist stock, see the TSE:SYZ Stock Forecast page.

Sylogist Reschedules Investor Day to April 2026, Plans Strategic Update for Investors

Sylogist has rescheduled its Investor Day to April 9, 2026, at the TMX Market Centre in Toronto, moving it from the previously planned January 22 date for logistical reasons. At the event, executive leadership plans to outline the company’s value creation priorities and long-term goals, discuss its market positioning and customer sentiment, and assess the effectiveness of its go-to-market strategy with an expanding partner network, providing investors with deeper insight into its growth strategy and competitive stance in the public sector SaaS space.

The most recent analyst rating on (TSE:SYZ) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Sylogist stock, see the TSE:SYZ Stock Forecast page.

Sylogist Reports Strong SaaS Growth in Q3 2025

Sylogist reported its third quarter 2025 results, highlighting a 12% growth in SaaS revenue and a 19% adjusted EBITDA margin. The company’s transformation towards a SaaS-driven model is evident as 72% of its revenue is now recurring, with significant contributions from partner-driven strategies. Despite a net loss of $0.9 million, the company maintains a strong gross profit margin of 60% and continues to focus on high-margin SaaS revenue, indicating a positive shift in its business model.

The most recent analyst rating on (TSE:SYZ) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Sylogist stock, see the TSE:SYZ Stock Forecast page.