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TECSYS Inc. J (TSE:TCS)
TSX:TCS
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TECSYS Inc. J (TCS) AI Stock Analysis

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TSE:TCS

TECSYS Inc. J

(TSX:TCS)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
C$37.00
▲(6.47% Upside)
TECSYS Inc. J's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting growth in SaaS and professional services. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The stock's low dividend yield further limits its attractiveness to income-focused investors.

TECSYS Inc. J (TCS) vs. iShares MSCI Canada ETF (EWC)

TECSYS Inc. J Business Overview & Revenue Model

Company DescriptionTecsys 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 MoneyTECSYS Inc. generates revenue primarily through the sale of its software solutions and associated services. The company's key revenue streams include software licensing fees, subscription fees for cloud-based services, and professional services such as consulting, implementation, and support. TECSYS also benefits from maintenance and support contracts which provide a steady stream of recurring revenue. The company leverages its expertise and extensive industry knowledge to forge significant partnerships with leading technology providers and industry players, further enhancing its market presence and revenue potential. Additionally, TECSYS's focus on innovation and customer-centric solutions helps it to maintain a competitive edge, driving sales and long-term growth.

TECSYS Inc. J Earnings Call Summary

Earnings Call Date:Sep 04, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The call highlighted strong revenue growth in SaaS and professional services, expansion in healthcare distribution, and successful product innovations. Lowlights were minimal, with only slight declines in net profit and hardware revenue. The overall outlook remains positive with robust pipeline growth and strategic investments.
Q1-2026 Updates
Positive Updates
Strong SaaS Revenue Growth
SaaS revenue in Q1 grew 25% year-over-year to $19.1 million. SaaS ARR at the end of Q1 was $79.3 million, up $2.8 million in the quarter.
Healthcare Distribution Growth
Continued growth in healthcare distribution driven by DSCSA legislation enforcement and new customer acquisitions in the U.S. and Canada.
Investment in Long-term Scalability
Launch of operations in India contributing to product development, accelerating delivery for customers.
Innovative AI-driven TecsysIQ Platform
Advancement of TecsysIQ platform, built on Databricks, delivering AI-powered insights across systems with positive customer feedback.
Great Place to Work Certification
Tecsys earned a Great Place to Work certification for the second year in a row with 92% employee approval.
Strong Financial Metrics
Gross margin increased to 51% in Q1 from 47% last year, with adjusted EBITDA up 24% to $3.2 million.
Robust Professional Services Growth
Professional services revenue for Q1 was up 20% year-over-year, with a strong backlog of $43.7 million.
Negative Updates
Net Profit Slight Decline
Net profit in Q1 was $762,000 compared to $798,000 in the same quarter last year.
Hardware Revenue Lowpoint
Hardware revenue reached the lowest level since the PCSYS acquisition in 2019, though bookings were reasonable.
Company Guidance
During the Tecsys Fiscal Year 2026 Q1 conference call, the company reported a strong start with SaaS revenue increasing by 25% year-over-year to $19.1 million, contributing to a total revenue of $46 million, which represents a 9% growth from the previous year. Adjusted EBITDA saw a 24% increase, reaching $3.2 million. SaaS Annual Recurring Revenue (ARR) grew by $2.8 million in the quarter, totaling $79.3 million, marking a 21% rise from the previous year. SaaS Remaining Performance Obligation (RPO) was reported at $226.3 million, up 16% from the prior year. Professional services revenue also grew by 20% to $16 million, with a backlog of $43.7 million, up 23% year-over-year. Gross margin improved to 51%, up from 47% in the same period last year. The company maintained its guidance for the full fiscal year with expected SaaS revenue growth of 20% to 22%, total revenue growth of 8% to 10%, and an adjusted EBITDA margin between 8% and 9%.

TECSYS Inc. J Financial Statement Overview

Summary
TECSYS Inc. exhibits strong financial health marked by consistent revenue growth, improving profitability, and robust cash flow generation. The balance sheet reflects prudent financial management with low leverage and high equity, providing a stable foundation for future growth. However, there is potential to enhance operational efficiency to further improve profitability margins.
Income Statement
75
Positive
TECSYS Inc. has demonstrated strong revenue growth, with a consistent increase over the years. Gross profit margins have been stable at around 48-50%, indicating effective cost management. The net profit margin improved from 1.08% in 2024 to 2.53% in 2025, showing enhanced profitability. However, the EBIT margin remains relatively low at 4.07%, suggesting room for operational efficiency improvements.
Balance Sheet
80
Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.02, indicating strong financial leverage management. Return on equity improved to 6.26% in 2025, reflecting better utilization of equity capital. The equity ratio is robust at 50.74%, showcasing financial stability and asset efficiency.
Cash Flow
65
Positive
TECSYS Inc. has shown substantial growth in free cash flow, increasing from 2024 to 2025. The operating cash flow to net income ratio of 3.12 in 2025 highlights strong cash generation capabilities relative to net income. The free cash flow to net income ratio also improved, supporting the company's ability to fund operations and investments effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue180.14M176.45M171.24M152.42M137.20M123.10M
Gross Profit89.13M85.29M78.39M66.81M60.31M60.63M
EBITDA11.45M11.06M5.72M4.58M6.75M12.96M
Net Income4.42M4.46M1.85M2.09M4.48M7.19M
Balance Sheet
Total Assets131.15M140.41M128.05M126.92M125.84M129.31M
Cash, Cash Equivalents and Short-Term Investments30.99M39.29M35.57M37.07M43.24M45.85M
Total Debt646.00K1.32M2.11M2.91M14.24M18.76M
Total Liabilities60.83M69.15M59.68M56.48M57.16M62.22M
Stockholders Equity70.32M71.26M68.37M70.44M68.68M67.09M
Cash Flow
Free Cash Flow9.55M11.16M3.24M5.97M2.88M17.58M
Operating Cash Flow15.16M13.91M4.86M7.76M4.94M19.11M
Investing Cash Flow-60.00K2.89M-1.47M-1.11M-2.38M-13.75M
Financing Cash Flow-6.62M-8.07M-5.76M-8.42M-5.31M-7.14M

TECSYS Inc. J Technical Analysis

Technical Analysis Sentiment
Negative
Last Price34.75
Price Trends
50DMA
36.12
Negative
100DMA
38.50
Negative
200DMA
40.69
Negative
Market Momentum
MACD
-0.43
Negative
RSI
45.00
Neutral
STOCH
75.23
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 34.75 is above the 20-day moving average (MA) of 34.58, below the 50-day MA of 36.12, and below the 200-day MA of 40.69, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 75.23 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
11.37B56.029.88%15.63%18.47%
71
Outperform
1.14B15.2512.47%6.34%0.03%-10.21%
70
Outperform
4.94B142.615.61%15.81%22.17%
68
Neutral
1.11B39.2561.75%18.51%32.49%
65
Neutral
C$515.01M116.536.45%0.98%4.03%199.20%
58
Neutral
512.21M23.5125.78%2.58%8.53%-8.25%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TCS
TECSYS Inc. J
34.75
-5.11
-12.82%
DSGX
The Descartes Systems Group
94.94
-8.02
-7.79%
TSE:CMG
Computer Modelling
6.20
-4.95
-44.39%
TSE:KXS
Kinaxis Inc
175.17
14.50
9.02%
EGHSF
Enghouse Systems
14.86
-8.74
-37.03%
DCBO
Docebo
27.86
-16.34
-36.97%

TECSYS Inc. J Corporate Events

Executive/Board ChangesShareholder Meetings
Tecsys Inc. Elects Directors and Re-Appoints Auditors at Annual Meeting
Positive
Sep 4, 2025

Tecsys Inc. announced the election of eight directors and the re-appointment of KPMG LLP as auditors at its annual shareholders’ meeting. The election results, with a majority vote for each nominee, reflect strong shareholder support and ensure continuity in governance. This decision is expected to bolster Tecsys’ strategic direction and operational stability, reinforcing its position in the supply chain solutions industry.

The most recent analyst rating on (TSE:TCS) stock is a Hold with a C$40.00 price target. To see the full list of analyst forecasts on TECSYS Inc. J stock, see the TSE:TCS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Tecsys Inc. Reports Strong Q1 Fiscal 2026 Results with Significant SaaS Revenue Growth
Positive
Sep 4, 2025

Tecsys Inc. reported a strong start to fiscal 2026 with a 25% increase in SaaS revenue and a 24% rise in adjusted EBITDA for the first quarter. The company’s expansion efforts, including a new location in Bangalore, have contributed positively to its growth. Tecsys also experienced a 20% growth in professional services revenue, reflecting robust implementation activity. The company maintains its financial guidance for the year, signaling confidence in continued revenue and profitability growth.

The most recent analyst rating on (TSE:TCS) stock is a Hold with a C$40.00 price target. To see the full list of analyst forecasts on TECSYS Inc. J stock, see the TSE:TCS Stock Forecast page.

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.Date of analysis: Sep 07, 2025