Sylogist (SYZ) AI Stock Analysis

• Market Cap: C$216.59M
• Dividend Yield: 0.43%
• Average Volume (3M): 42.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -13.99%
• EPS Growth: -421.95%
• Country: CA
• Employees: 200
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 23,389,578
• 10 Day Avg. Volume: 97,339
• 30 Day Avg. Volume: 42,519
• PEG Ratio: 1.27
• Price to Book (P/B): 5.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.86
• 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: 34.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• 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., 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
	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

• Technical Analysis Sentiment: Positive
• Last Price: 9.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 9.26 is above the 20-day moving average (MA) of 9.07, above the 50-day MA of 8.63, and below the 200-day MA of 9.71, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 is Neutral, 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
NCI	81 Outperform	C$101.32M	10.23	135.14%	―	92.08%	100.09%
QIS	70 Outperform	C$64.04M	43.50	5.09%	―	-0.92%	-23.37%
SYZ	68 Neutral	C$216.59M	―	-3.13%	0.43%	-13.99%	-421.95%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
THNC	62 Neutral	C$166.58M	110.86	2.02%	―	16.58%	―
IMP	55 Neutral	C$130.25M	39.90	59.35%	―	253.50%	―
WNDR	52 Neutral	C$225.01M	51.22	-21.59%	―	25.27%	-108.07%

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.