TECSYS Inc. J (TSE:TCS)
TSX:TCS
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TECSYS Inc. J
(TSX:TCS)
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Rating:70Outperform
Price Target:
C$29.00
▼(-7.11% Downside)
Action:UpgradedDate:03/06/26
Score is driven mainly by strong financial quality (rapid revenue growth, improving margins, solid cash flow, and a very low-debt balance sheet) and a constructive earnings update with reaffirmed guidance and strong bookings. The biggest offsets are an expensive valuation (high P/E) and mixed technicals with negative MACD and overbought momentum signals.
Positive Factors
SaaS ARR and bookings momentum
Sustained record bookings, rapid new-logo wins and a growing pipeline indicate durable commercial traction in enterprise healthcare distribution. This accelerates recurring ARR, diversifies customer base, and increases platform stickiness, supporting multi-quarter SaaS revenue expansion.
Negative Factors
Low net margins and profit volatility
Despite revenue acceleration, low net margins and historical margin swings limit retained earnings and ROE improvement. Earnings volatility reduces predictability of cash flow and can constrain funding for growth initiatives unless margin gains are sustained over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
SaaS ARR and bookings momentum
Sustained record bookings, rapid new-logo wins and a growing pipeline indicate durable commercial traction in enterprise healthcare distribution. This accelerates recurring ARR, diversifies customer base, and increases platform stickiness, supporting multi-quarter SaaS revenue expansion.
Read all positive factors
TECSYS Inc. J (TCS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$421.36M
Dividend Yield1.07%
Average Volume (3M)45.55K
Price to Earnings (P/E)55.3
Beta (1Y)0.39
Revenue Growth7.00%
EPS Growth110.62%
CountryCA
Employees655
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.12
Shares Outstanding14,605,329
10 Day Avg. Volume18,908
30 Day Avg. Volume45,554
Financial Highlights & Ratios
PEG Ratio-41.72
Price to Book (P/B)8.06
Price to Sales (P/S)3.22
P/FCF Ratio169.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$32.50Price Target Upside4.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.35
Revenue Forecast (FY)C$191.66M
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 a...
How the Company Makes Money
TECSYS primarily makes money by licensing and delivering its supply chain software and by providing services associated with deploying and maintaining that software. Key revenue streams generally include: (1) software revenue, which may include su...
TECSYS Inc. J Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 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
90
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 189.44M | 176.45M | 152.42M | 137.20M | 123.10M | 104.86M |
| Gross Profit | 97.05M | 85.29M | 66.81M | 60.31M | 60.63M | 50.32M |
| EBITDA | 13.37M | 11.06M | 7.99M | 10.11M | 15.26M | 8.73M |
| Net Income | 5.97M | 4.46M | 2.09M | 4.48M | 7.19M | 2.35M |
Balance Sheet | ||||||
| Total Assets | 142.97M | 140.41M | 126.92M | 125.84M | 129.31M | 124.43M |
| Cash, Cash Equivalents and Short-Term Investments | 36.23M | 39.29M | 37.07M | 43.24M | 45.85M | 37.53M |
| Total Debt | 5.30M | 1.32M | 2.91M | 14.24M | 18.76M | 20.91M |
| Total Liabilities | 74.00M | 69.15M | 56.48M | 57.16M | 62.22M | 63.31M |
| Stockholders Equity | 68.97M | 71.26M | 70.44M | 68.68M | 67.09M | 61.12M |
Cash Flow | ||||||
| Free Cash Flow | 13.07M | 11.16M | 5.97M | 2.88M | 17.58M | 8.88M |
| Operating Cash Flow | 20.07M | 13.91M | 7.76M | 4.94M | 19.11M | 10.01M |
| Investing Cash Flow | -6.25M | 2.89M | -1.11M | -2.38M | -13.75M | -13.25M |
| Financing Cash Flow | -10.55M | -8.07M | -8.42M | -5.31M | -7.14M | 15.86M |
TECSYS Inc. J Technical Analysis
Positive
31.22
Price Trends
26.24
Positive
29.19
Negative
32.69
Negative
Market Momentum
0.36
Negative
61.53
Neutral
79.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCS, the sentiment is Positive. The current price of 31.22 is above the 20-day moving average (MA) of 27.69, above the 50-day MA of 26.24, and below the 200-day MA of 32.69, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | C$8.56B | 38.38 | 10.76% | ― | 14.55% | 15.55% | |
74 Outperform | C$684.88M | 16.69 | 73.40% | ― | 16.25% | 31.71% | |
70 Outperform | C$421.36M | 55.29 | 8.57% | 1.07% | 7.00% | 110.62% | |
69 Neutral | C$3.96B | 49.33 | 16.46% | ― | 15.11% | 75.40% | |
67 Neutral | C$915.03M | 14.62 | 12.17% | 5.69% | -0.72% | -9.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | C$7.86B | 12.20 | 10.88% | 3.27% | -5.01% | 13.21% |
* Technology Sector Average
TSE:TCS
TECSYS Inc. J
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TECSYS Inc. J Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresProduct-Related Announcements
Tecsys Delivers Record Q3 Results, Launches AI Platform and Cuts Jobs to Boost Efficiency
Positive
Mar 5, 2026
Tecsys reported a strong third quarter of fiscal 2026, posting record SaaS revenue of $20.1 million and record Adjusted EBITDA of $5.0 million, up 17% and 43% respectively from a year earlier. Total revenue rose to $48.5 million, net profit improv...
Business Operations and Strategy
Tecsys Wins Modern Healthcare Best in Business Award for Supply Chain Excellence
Positive
Jan 13, 2026
Tecsys Inc., a specialist in healthcare-focused supply chain software for functions such as pharmacy inventory management, point-of-use tracking and real-time analytics, has been named a winner in Modern Healthcare’s 2025 Best in Business Aw...
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.