Sylogist (SYZ) AI Stock Analysis

• Market Cap: C$228.98M
• Dividend Yield: 0.41%
• Average Volume (3M): 19.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -13.99%
• EPS Growth: -421.95%
• Country: CA
• Employees: 200
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 23,389,578
• 10 Day Avg. Volume: 31,358
• 30 Day Avg. Volume: 19,207
• PEG Ratio: N/A
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.45
• 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$12.50
• Price Target Upside: 27.42% 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.

Sylogist Business Overview & Revenue Model

Company Description

Sylogist Ltd. (SYZ) is a Canadian public company that provides enterprise resource planning (ERP) solutions primarily to public sector organizations and non-profit entities. The company's core products and services include financial management software, human resources management, and customer relationship management solutions, aimed at improving operational efficiency and financial transparency for its clients. Sylogist operates across various sectors including education, government, and non-profit, offering tailored solutions to meet sector-specific needs.

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: Positive
• Last Price: 9.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SYZ, the sentiment is Positive. The current price of 9.81 is above the 20-day moving average (MA) of 9.07, above the 50-day MA of 9.01, and above the 200-day MA of 9.35, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 95.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SYZ.

Sylogist Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTEX	78 Outperform	$10.68B	12.13	15.87%	0.09%	-8.74%	307.82%
DSG	77 Outperform	$12.45B	63.84	10.66%	―	17.42%	22.81%
KXS	74 Outperform	C$5.77B	423.46	2.32%	―	15.14%	-31.45%
CSU	74 Outperform	C$103.63B	100.54	27.41%	<0.01%	20.99%	33.05%
ENGH	73 Outperform	$1.30B	16.58	13.26%	5.77%	5.12%	-2.77%
SYZ	68 Neutral	C$228.98M	―	-3.13%	0.41%	-13.99%	-421.95%
Sector *	57 Neutral	HK$14.47B	5.85	-5.77%	4.75%	9.65%	-43.80%

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.