Sylogist (SYZ) AI Stock Analysis

• Market Cap: C$188.05M
• Dividend Yield: 0.5%
• Average Volume (3M): 83.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -4.15%
• EPS Growth: -1335.79%
• Country: CA
• Employees: 200
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 23,389,578
• 10 Day Avg. Volume: 56,029
• 30 Day Avg. Volume: 83,741
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$10.00
• Price Target Upside: 24.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ―

Sylogist's overall stock score reflects its strong strategic execution and growth in SaaS bookings and ARR, despite concerns about revenue declines and high leverage. The stock's technical indicators suggest short-term positivity but caution is advised due to overbought signals. The negative P/E ratio and low dividend yield impact its valuation score.

Positive Factors

SaaS Revenue Growth

The growth in SaaS ARR indicates successful transition to a recurring revenue model, enhancing revenue predictability and long-term financial stability.

Partner Channel Expansion

Significant growth in partner-attached bookings suggests a robust partner ecosystem, which can drive further market penetration and revenue growth.

Strategic Execution

Strong bookings growth and high win rate reflect effective strategic execution, positioning the company well for future growth and competitive advantage.

Negative Factors

Revenue Decline

Declining revenue suggests potential challenges in market demand or sales execution, which could impact long-term growth prospects if not addressed.

Rising Debt Levels

Increased reliance on debt financing can strain financial flexibility, potentially limiting the company's ability to invest in growth opportunities.

Adjusted EBITDA Margin Decline

A decline in adjusted EBITDA margin suggests pressure on operational efficiency, which may affect profitability if not managed effectively.

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 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.

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.

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.

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
EBITDA	11.05M	15.41M	14.50M	7.64M	17.18M
Net Income	1.10M	2.54M	4.37M	1.92M	10.01M
Balance Sheet
Total Assets	96.58M	103.06M	98.03M	70.96M	78.19M
Cash, Cash Equivalents and Short-Term Investments	11.61M	14.54M	29.59M	42.80M	53.10M
Total Debt	17.74M	21.97M	19.03M	498.00K	0.00
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

• Technical Analysis Sentiment: Neutral
• Last Price: 8.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SYZ, the sentiment is Neutral. The current price of 8.04 is above the 20-day moving average (MA) of 7.90, below the 50-day MA of 8.65, and below the 200-day MA of 8.96, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SYZ.

Sylogist Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYZ	68 Neutral	C$188.05M	―	-7.92%	0.50%	-4.15%	-1335.79%
QIS	64 Neutral	C$53.02M	35.82	5.05%	―	0.10%	-18.29%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
THNC	60 Neutral	C$142.19M	152.55	1.61%	―	16.12%	―
NCI	56 Neutral	C$78.05M	9.26	84.34%	―	78.50%	12.58%
IMP	49 Neutral	C$190.86M	138.43	27.53%	―	156.62%	―
WNDR	48 Neutral	C$229.12M	51.22	-30.04%	―	0.36%	-690.91%

Sylogist Corporate Events

Sylogist Reports Strong Q3 2024 Results

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.