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TECSYS Inc. J
(TSX:TCS)
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Rating:64Neutral
Price Target:
C$37.00
▲(11.82% Upside)
Action:Reiterated
Date:07/29/26
The score is primarily supported by strong financial performance: rapid revenue growth, improving gross margin, and a conservatively financed balance sheet with rising ROE. Offsetting this, valuation is a key risk due to a very high P/E, and technicals are mixed with the stock below its 50-day average despite being above longer-term averages.
Positive Factors
Rapid revenue growth
A 184% TTM revenue increase signals durable demand and stronger product-market fit for TECSYS’s supply-chain software. Sustained top-line expansion supports scale in recurring revenue and services, enabling reinvestment in product and sales capacity over the next 2–6 months.
Negative Factors
Declining free cash flow
A nearly 20% drop in FCF and FCF at ~65% of net income signals weaker cash conversion recently. Persistent declines reduce internal funding for R&D, sales expansion, or acquisitions and increase sensitivity to working-capital swings, affecting durable growth capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth
A 184% TTM revenue increase signals durable demand and stronger product-market fit for TECSYS’s supply-chain software. Sustained top-line expansion supports scale in recurring revenue and services, enabling reinvestment in product and sales capacity over the next 2–6 months.
Read all positive factors
TECSYS Inc. J (TCS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$444.19M
Dividend Yield1.15%
Average Volume (3M)45.55K
Price to Earnings (P/E)111.7
Beta (1Y)0.55
Revenue Growth10.55%
EPS Growth-9.36%
CountryCA
Employees655
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.28
Shares Outstanding14,416,937
10 Day Avg. Volume18,908
30 Day Avg. Volume45,554
Financial Highlights & Ratios
PEG Ratio-13.29
Price to Book (P/B)8.48
Price to Sales (P/S)2.73
P/FCF Ratio53.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.73
Revenue Forecast (FY)C$200.45M
TECSYS Inc. J Business Overview & Revenue Model
Company Description
Founded in 1983 and headquartered in Montreal, Canada, Tecsys Inc. specializes in the development, marketing, and sale of extensive supply chain management software along with complementary services. The company's operations span across Canada, th...
How the Company Makes Money
TECSYS primarily generates revenue by licensing and delivering its supply chain execution software and related services. Key revenue streams typically include: (1) recurring software revenue from subscription-based (SaaS) and/or term licenses for ...
TECSYS Inc. J Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call communicated multiple strong operational and financial wins: record Q3 bookings, industry-leading SaaS ARR growth on a constant currency basis, record adjusted EBITDA, robust pipeline expansion (+30% YoY) and accelerating new-logo momentum (new-logo bookings +150% YoY). The commercial launch of TecsysIQ and substantial pharmacy pipeline growth (>200% YoY) position the company for continued SaaS-led growth. Near-term headwinds include known noncore customer attrition (≈CA$1M ARR effect), a CA$2.1M FX impact to sequential ARR, a 19% decline in Professional Services backlog, and a CA$4.5M one-time restructuring charge tied to a ~7% workforce reduction. On balance, the positive operational momentum, margin expansion and reaffirmed guidance materially outweigh the manageable, disclosed near-term challenges.Positive Updates
Strong SaaS Revenue and ARR Growth
SaaS revenue grew 17% year-over-year to CA$20.1M in Q3 (18% on a constant currency basis). SaaS ARR was CA$83.3M at quarter end, up 10% year-over-year (16% constant currency). Elite SaaS ARR (core product) grew 17% year-over-year (23% constant currency).
Negative Updates
Known Noncore Customer Attrition and Near-Term ARR Headwind
Attrition among a small group of noncore customers (previously disclosed) will moderate reported SaaS ARR growth over the next two quarters. Management estimates roughly CA$1M of ARR headwind to play out over the next couple of quarters.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong SaaS Revenue and ARR Growth
SaaS revenue grew 17% year-over-year to CA$20.1M in Q3 (18% on a constant currency basis). SaaS ARR was CA$83.3M at quarter end, up 10% year-over-year (16% constant currency). Elite SaaS ARR (core product) grew 17% year-over-year (23% constant currency).
Read all positive updates
Company Guidance
Management reaffirmed FY26 guidance, calling for SaaS revenue growth of 20–22%, total revenue growth of 8–10% and an adjusted EBITDA margin of 8–9%; they noted Q3 SaaS revenue was $20.1M, SaaS ARR $83.3M (Elite SaaS ARR +17% YoY, +23% constant currency), YTD SaaS revenue $58.9M (+21% YoY), and adjusted EBITDA of $5.0M in Q3 (adjusted EBITDA up 49% on an LTM basis, YTD adjusted EBITDA $13.3M vs. $9.1M prior year). They expect Q4 Professional Services revenue to look like Q3’s $15.0M (vs. last year’s Q4 $16.2M), will record an estimated $4.5M restructuring charge in Q4 tied to ~7% workforce reductions that should yield ~$8.1M in annual cost savings, have cash and short‑term investments of $36.2M with no debt, the Board approved a $0.09 quarterly dividend, and management flagged roughly $1M of known SaaS ARR attrition to play out over the next two quarters.TECSYS Inc. J Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
64
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 193.14M | 176.45M | 171.24M | 152.42M | 137.20M |
| Gross Profit | 99.55M | 85.29M | 78.39M | 66.81M | 60.31M |
| EBITDA | 12.45M | 11.06M | 6.21M | 7.99M | 10.11M |
| Net Income | 4.04M | 4.46M | 1.85M | 2.09M | 4.48M |
Balance Sheet | |||||
| Total Assets | 143.01M | 140.41M | 128.05M | 126.92M | 125.84M |
| Cash, Cash Equivalents and Short-Term Investments | 31.21M | 39.29M | 35.57M | 37.07M | 43.24M |
| Total Debt | 5.29M | 1.32M | 2.11M | 2.91M | 14.24M |
| Total Liabilities | 80.73M | 69.15M | 59.68M | 56.48M | 57.16M |
| Stockholders Equity | 62.28M | 71.26M | 68.37M | 70.44M | 68.68M |
Cash Flow | |||||
| Free Cash Flow | 9.88M | 11.16M | 3.24M | 5.97M | 2.88M |
| Operating Cash Flow | 16.25M | 13.91M | 4.86M | 7.76M | 4.94M |
| Investing Cash Flow | -6.27M | 2.89M | -1.47M | -1.11M | -2.38M |
| Financing Cash Flow | -18.43M | -8.07M | -5.76M | -8.42M | -5.31M |
TECSYS Inc. J Technical Analysis
Negative
33.09
Price Trends
34.10
Negative
33.78
Negative
31.75
Negative
Market Momentum
-0.54
Positive
37.30
Neutral
16.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCS, the sentiment is Negative. The current price of 33.09 is below the 20-day moving average (MA) of 33.23, below the 50-day MA of 34.10, and above the 200-day MA of 31.75, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TCS.
TECSYS Inc. J Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$4.71B | 39.89 | 20.88% | ― | 15.99% | 252.03% | |
74 Outperform | C$921.05M | 12.93 | 11.97% | 7.51% | -4.08% | -7.65% | |
73 Outperform | C$9.20B | 37.54 | 11.26% | ― | 11.62% | 19.63% | |
70 Outperform | C$8.25B | 5.43 | 28.29% | 4.81% | 0.54% | 54.92% | |
69 Neutral | C$793.30M | 19.29 | 113.64% | ― | 11.23% | 65.79% | |
64 Neutral | C$444.19M | 111.67 | 5.99% | 1.07% | 10.55% | -9.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TSE:TCS
TECSYS Inc. J
30.81
-5.73
-15.68%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.