Sylogist (SYZ) AI Stock Analysis

• Market Cap: C$132.56M
• Dividend Yield: 0.71%
• Average Volume (3M): 48.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: 0.00
• 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$9.00
• Price Target Upside: 58.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$6.00 ▲(5.82% Upside)

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 Revenue Growth

The increase in SaaS revenue indicates a successful transition towards a more predictable and scalable revenue model, enhancing long-term stability.

Microsoft Partnership

Strengthening the Microsoft partnership enhances product offerings and market reach, supporting future growth in cloud solutions.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investment in growth initiatives and resilience against market fluctuations.

Negative Factors

Decline in Project Services Revenue

The decline in project services revenue reflects challenges in adapting to a partner-led strategy, impacting overall revenue diversification.

Mission Segment Revenue Decline

Decreased revenue in the Mission segment indicates potential issues in maintaining client relationships and service delivery efficiency.

Adjusted EBITDA Margin Decline

The decline in EBITDA margin suggests rising costs or inefficiencies, which could pressure profitability if not addressed.

Sylogist Business Overview & Revenue Model

Company Description

Sylogist (SYZ) is a leading provider of enterprise resource planning (ERP) solutions and software for public sector organizations, including municipalities, non-profits, and educational institutions. The company focuses on delivering cloud-based solutions that enhance operational efficiency and streamline processes across various sectors. Core products include financial management, human resources, and citizen engagement platforms, which are designed to meet the unique needs of public sector clients.

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 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	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: 5.67
• 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 Negative. The current price of 5.67 is above the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.69, and below the 200-day MA of 7.71, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, 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
NCI	65 Neutral	C$61.09M	7.61	40.79%	―	62.61%	-10.60%
QIS	62 Neutral	C$58.55M	58.03	3.37%	―	1.46%	-65.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYZ	61 Neutral	C$132.56M	-45.03	-8.89%	0.71%	-4.89%	-143.94%
THNC	56 Neutral	C$120.19M	325.00	0.65%	―	14.05%	-62.16%
WNDR	51 Neutral	C$202.72M	-5.64	-31.23%	―	13.16%	-1375.61%
IMP	50 Neutral	C$165.54M	-55.82	-14.10%	―	48.18%	-401.19%

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.