TECSYS Inc. J (TCS) AI Stock Analysis

• Market Cap: C$471.61M
• Dividend Yield: 1.08%
• Average Volume (3M): 45.55K
• Price to Earnings (P/E): 87.4
• Beta (1Y): 0.78
• Revenue Growth: 7.00%
• EPS Growth: 110.62%
• Country: CA
• Employees: 655
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 14,714,929
• 10 Day Avg. Volume: 18,908
• 30 Day Avg. Volume: 45,554
• PEG Ratio: -41.72
• Price to Book (P/B): 8.06
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 169.85
• 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$48.00
• Price Target Upside: 49.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$36.00 ▲(12.32% Upside)

TECSYS Inc. shows strong financial performance and positive earnings call highlights, particularly in SaaS and professional services growth. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The company's strategic advancements and robust pipeline position it well for future growth, but macroeconomic challenges and customer attrition remain risks.

Positive Factors

SaaS Revenue Growth

The strong growth in SaaS revenue indicates robust demand for TECSYS's cloud-based solutions, supporting recurring revenue streams and long-term business stability.

Financial Stability

Minimal leverage enhances financial stability, providing TECSYS with flexibility to invest in growth opportunities and withstand economic fluctuations.

Healthcare Pipeline Growth

Significant growth in the healthcare pipeline suggests expanding market opportunities and strengthens TECSYS's position in a critical sector.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow limits TECSYS's ability to reinvest in business expansion and innovation, potentially impacting long-term growth prospects.

Low Net Profit Margin

A low net profit margin indicates challenges in translating revenue growth into bottom-line profitability, which may affect TECSYS's financial performance.

Macroeconomic Challenges

Macroeconomic factors, including policy changes, can disrupt TECSYS's sales cycles and impact revenue growth, posing risks to its business environment.

TECSYS Inc. J Business Overview & Revenue Model

Company Description

Tecsys Inc. engages in the development, marketing, and sale of enterprise-wide supply chain management software and related services in Canada, the United States, Europe, and internationally. The company offers warehouse management, distribution and transportation management, supply management at point-of-use and order management and fulfillment, as well as financial management and analytics solutions. It also provides implementation, system enhancement, cloud, advisory, consulting, education, training, and maintenance and support services, as well as engages in sale of hardware. The company primarily serves the healthcare systems, automotive and services parts, third-party logistics, retail, and general wholesale distribution industries. Tecsys Inc. was incorporated in 1983 and is headquartered in Montreal, Canada.

How the Company Makes Money

TECSYS generates revenue primarily through the sale of its software solutions and related services. The company operates on a subscription-based model, where clients pay recurring fees for access to its software, including cloud-based services. Additionally, TECSYS earns revenue from professional services such as implementation, training, and ongoing support. Key revenue streams include licenses for proprietary software, maintenance agreements, and consulting services. The company also benefits from strategic partnerships with technology providers and distributors, which enhance its market reach and expand its customer base, contributing significantly to its earnings.

TECSYS Inc. J Financial Statement Overview

Summary

TECSYS Inc. J shows strong revenue growth and a robust balance sheet with minimal leverage. However, there is room for improvement in net profit margins and challenges in cash flow management, particularly in free cash flow growth.

Income Statement

TECSYS Inc. J shows a solid revenue growth trajectory with a TTM revenue growth rate of 2.09%. The gross profit margin is strong at 49.48%, indicating efficient cost management. However, the net profit margin is relatively low at 2.46%, suggesting room for improvement in profitability. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.009, indicating minimal leverage and financial risk. The return on equity is moderate at 6.63%, showing decent profitability relative to shareholder equity. The equity ratio of 53.61% suggests a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is healthy, but the free cash flow growth rate is negative at -14.38%, indicating challenges in cash generation. The operating cash flow to net income ratio is 0.25, suggesting adequate cash conversion. The free cash flow to net income ratio of 0.63 indicates a reasonable level of cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	186.34M	171.24M	176.45M	152.42M	137.20M	123.10M
Gross Profit	94.04M	78.39M	85.29M	66.81M	60.31M	60.63M
EBITDA	13.41M	6.21M	11.06M	7.99M	10.11M	15.26M
Net Income	5.43M	1.85M	4.46M	2.09M	4.48M	7.19M
Balance Sheet
Total Assets	133.71M	128.05M	140.41M	126.92M	125.84M	129.31M
Cash, Cash Equivalents and Short-Term Investments	30.47M	35.57M	39.29M	37.07M	43.24M	45.85M
Total Debt	437.00K	2.11M	1.32M	2.91M	14.24M	18.76M
Total Liabilities	65.54M	59.68M	69.15M	56.48M	57.16M	62.22M
Stockholders Equity	68.17M	68.37M	71.26M	70.44M	68.68M	67.09M
Cash Flow
Free Cash Flow	8.53M	3.24M	11.16M	5.97M	2.88M	17.58M
Operating Cash Flow	14.84M	4.86M	13.91M	7.76M	4.94M	19.11M
Investing Cash Flow	-5.35M	-1.47M	2.89M	-1.11M	-2.38M	-13.75M
Financing Cash Flow	-7.77M	-5.76M	-8.07M	-8.42M	-5.31M	-7.14M

TECSYS Inc. J Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.05
• 50DMA: Negative
• 100DMA: Negative
• 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:TCS, the sentiment is Negative. The current price of 32.05 is below the 20-day moving average (MA) of 33.56, below the 50-day MA of 34.09, and below the 200-day MA of 37.48, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 23.54 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	79 Outperform	C$10.63B	49.73	10.70%	―	14.55%	15.55%
KXS	78 Outperform	C$4.95B	102.64	8.24%	―	15.11%	75.40%
CMG	69 Neutral	C$427.71M	20.68	25.64%	2.32%	3.19%	-1.07%
ENGH	69 Neutral	C$1.12B	15.35	12.20%	5.66%	-0.72%	-9.27%
TCS	65 Neutral	C$471.61M	87.35	8.14%	1.08%	7.00%	110.62%
DCBO	63 Neutral	C$868.65M	28.58	49.99%	―	16.25%	31.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

TECSYS Inc. J Corporate Events

Tecsys Achieves Record Revenue and Growth in Q2 Fiscal 2026

Tecsys Inc. reported strong financial results for the second quarter of fiscal 2026, with a 22% increase in SaaS revenue and a 71% rise in adjusted EBITDA. Despite challenges such as U.S. healthcare policy changes and tariff uncertainties, the company achieved record total revenue and professional services growth, demonstrating robust business scalability and execution. Tecsys also expanded its market reach by making its Elite™ software available on AWS Marketplace, providing customers with easier access to its technology. The company maintained its full fiscal 2026 guidance, anticipating continued revenue growth and profitability.

Tecsys Expands Elite™ Platform Access via AWS Marketplace

Tecsys Inc. has announced that its Elite™ supply chain platform is now available on AWS Marketplace, enhancing access for healthcare and complex distribution organizations to its enterprise-grade technology. This development aligns with Tecsys’ cloud strategy, offering customers improved visibility, agility, and efficiency in their supply chains, and allowing them to integrate advanced supply chain solutions seamlessly into their existing cloud ecosystems.

Tecsys Renews Executive Chairman’s Securities Disposition Plan

Tecsys Inc. announced the renewal of its Executive Chairman Dave Brereton’s automatic securities disposition plan (ASDP), established for personal and financial planning purposes. The plan allows for the orderly sale or donation of up to 96,000 common shares, representing approximately 0.6% of the company’s outstanding shares, over a 12-month period. The ASDP includes pre-arranged instructions for sales and donations, ensuring compliance with securities legislation and internal policies, and prohibits any influence from Mr. Brereton or Ms. Ensign-Brereton on the execution of the plan. This move is expected to maintain their significant equity interest in Tecsys while adhering to regulatory practices.