TECSYS Inc. J (TCS) AI Stock Analysis

• Market Cap: C$359.99M
• Dividend Yield: 1.07%
• Average Volume (3M): 45.55K
• Price to Earnings (P/E): 67.0
• Beta (1Y): 0.70
• 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: 14,639,829
• 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$38.50
• Price Target Upside: 23.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: C$26.00 ▼(-16.72% Downside)

The score is driven primarily by solid financial stability (minimal leverage) and a positive earnings-call readthrough (strong SaaS/EBITDA growth with maintained guidance). These positives are tempered by very weak technical momentum (below key moving averages with negative MACD and low RSI) and a demanding valuation (high P/E) alongside soft free-cash-flow growth.

Positive Factors

SaaS Revenue & ARR Growth

Sustained double-digit SaaS revenue and ARR growth reflects a recurring-revenue mix that drives predictable cash flows and higher lifetime value. Maintaining guidance for 20–22% SaaS growth supports durable topline visibility and scalability of subscription economics over the medium term.

High & Improving Gross Margins

Near-50% gross margins, improved to 52% driven by higher SaaS and professional services mix, indicate strong unit economics and pricing power. These margins provide structural room to invest in R&D, go-to-market, and drive sustained EBITDA expansion as SaaS penetration increases.

Very Low Leverage / Strong Balance Sheet

Extremely low leverage and a solid equity base offer financial resilience and flexibility for strategic investments, M&A or cyclical stress. Minimal debt reduces refinancing risk and supports consistent investment in product development and customer success over multiple market cycles.

Negative Factors

Low Net Profit Margin

Despite strong gross margins, the low net margin suggests significant operating costs or non-operating items eroding bottom-line returns. This constrains free cash available for shareholders and limits the pace at which incremental revenue growth translates into durable profitability gains.

Declining Free Cash Flow Growth

Negative FCF growth reduces internal funding for product development and sales expansion, and may force trade-offs in capex or shareholder returns. Even with strong operating cash-to-income, deteriorating FCF trends warrant monitoring for sustainable reinvestment capacity.

Healthcare Concentration & Policy Sensitivity

Heavy exposure to healthcare procurement cycles and policy shifts creates structural booking unpredictability and longer sales cycles. Combined with recent non-core customer attrition, this concentration risk can impede consistent revenue conversion and elongate payback periods for sales investments.

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

Solid fundamentals supported by strong gross margin (49.48% TTM) and a very low debt-to-equity ratio (0.009 TTM). Offsetting this are weak net profitability (2.46% net margin TTM) and declining free cash flow growth (-10.68% TTM).

Income Statement

TECSYS Inc. shows a solid revenue growth rate of 3.44% TTM, indicating a positive trajectory in sales. The gross profit margin of 49.48% TTM is strong, reflecting efficient cost management. However, the net profit margin is relatively low at 2.46% TTM, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate at 4.25% and 6.36% TTM, respectively, indicating stable operational performance.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.009 TTM, highlighting minimal leverage and financial stability. The return on equity is modest at 6.63% TTM, suggesting efficient use of equity capital. The equity ratio stands at 51.00% TTM, indicating a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Operating cash flow to net income ratio is 2.73 TTM, showing strong cash generation relative to net income. However, the free cash flow growth rate is negative at -10.68% TTM, indicating a decline in cash available for reinvestment. The free cash flow to net income ratio is 0.63 TTM, suggesting that a significant portion of earnings is converted into free cash flow.

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: 31.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 31.22 is above the 20-day moving average (MA) of 27.69, above the 50-day MA of 30.72, and below the 200-day MA of 35.86, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 28.62 is Positive, neither overbought nor oversold. The STOCH value of 18.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	72 Outperform	C$7.87B	37.40	10.70%	―	14.55%	15.55%
OTEX	70 Outperform	C$8.09B	12.04	12.32%	3.27%	-5.01%	13.21%
ENGH	69 Neutral	$973.54M	13.31	12.20%	5.69%	-0.72%	-9.27%
KXS	67 Neutral	C$3.35B	71.51	8.24%	―	15.11%	75.40%
TCS	63 Neutral	C$359.99M	67.02	8.14%	1.07%	7.00%	110.62%
DCBO	63 Neutral	C$764.92M	24.68	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 Wins Modern Healthcare Best in Business Award for Supply Chain Excellence

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 Awards for supply chain excellence. The recognition underscores Tecsys’s role in shoring up supply chain resilience and visibility for major health systems, helping hospitals ensure critical products are available when and where needed and addressing industry challenges like drug shortages and fragmented demand planning, thereby strengthening its positioning as a key technology partner to leading U.S. health networks and reinforcing investor confidence in its healthcare growth strategy.

The most recent analyst rating on (TSE:TCS) stock is a Hold with a C$32.00 price target. To see the full list of analyst forecasts on TECSYS Inc. J stock, see the TSE:TCS Stock Forecast page.

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.

The most recent analyst rating on (TSE:TCS) stock is a Buy with a C$39.00 price target. To see the full list of analyst forecasts on TECSYS Inc. J stock, see the TSE:TCS Stock Forecast page.

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.

The most recent analyst rating on (TSE:TCS) stock is a Buy with a C$39.00 price target. To see the full list of analyst forecasts on TECSYS Inc. J stock, see the TSE:TCS Stock Forecast page.