TECSYS Inc. J (TCS) AI Stock Analysis

• Market Cap: C$598.64M
• Dividend Yield: 0.82%
• Average Volume (3M): 11.84K
• Price to Earnings (P/E): 198.2
• Beta (1Y): 0.51
• Revenue Growth: 2.61%
• EPS Growth: 46.26%
• Country: CA
• Employees: 655
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 14,836,120
• 10 Day Avg. Volume: 20,757
• 30 Day Avg. Volume: 11,842
• PEG Ratio: 11.87
• Price to Book (P/B): 10.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 153.01
• 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$47.00
• Price Target Upside: 16.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: C$46.00 ▲(14.00%Upside)

TECSYS Inc. demonstrates strong financial performance and strategic growth initiatives, particularly in SaaS and global expansion. However, the high P/E ratio raises concerns about overvaluation, and the mixed sentiment from the earnings call regarding future guidance impacts the overall score.

TECSYS Inc. J Business Overview & Revenue Model

Company Description

TECSYS Inc. (TCS) is a leading provider of supply chain solutions, specializing in software and technology that streamline logistics and distribution processes. The company operates in sectors such as healthcare, complex distribution, and third-party logistics, offering a suite of products that include warehouse management systems, transportation management solutions, and demand planning tools. With a focus on enhancing operational efficiency, TECSYS empowers organizations to optimize their supply chain operations through innovative technology and industry expertise.

How the Company Makes Money

TECSYS Inc. generates revenue primarily through the sale of its software solutions, which are offered as both on-premise installations and cloud-based subscriptions. The company earns income from software licensing fees, subscription fees, and associated maintenance and support services. Additionally, TECSYS provides professional services such as implementation, training, and consulting, which contribute to its revenue streams. Key partnerships with technology vendors and system integrators also play a crucial role in expanding TECSYS's market reach and enhancing its product offerings, thereby driving sales and revenue growth.

TECSYS Inc. J Financial Statement Overview

Summary

TECSYS Inc. exhibits strong growth and cash flow management capabilities, with solid revenue and gross profit margins. While profitability measures such as net profit margin and return on equity are areas for potential improvement, the company's strong equity position and effective cash flow management underscore its financial stability in the software industry.

Income Statement

TECSYS Inc. has demonstrated strong revenue growth, with a consistent increase from $104.9M in 2020 to $173.5M in TTM (Trailing-Twelve-Months) 2025. The gross profit margin is solid at 46.7% for TTM 2025, showing efficient cost management. While the net profit margin improved to 1.7% in TTM 2025, it remains relatively low, indicating potential challenges in managing operational expenses.

Balance Sheet

The company maintains a healthy equity ratio of 46.4% in TTM 2025, indicating a strong equity base. The debt-to-equity ratio is low at 0.03, reflecting prudent financial leverage. However, the return on equity has decreased to 5.0% in TTM 2025, suggesting room for improvement in generating returns on shareholders' equity.

Cash Flow

TECSYS Inc. has shown an impressive free cash flow growth rate and maintained a positive operating cash flow to net income ratio at 3.99 in TTM 2025, indicating robust cash flow generation relative to net income. The free cash flow to net income ratio is 1.38, highlighting efficient cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
173.55M	171.24M	152.42M	137.20M	123.10M	104.86M
	Gross Profit
80.98M	78.39M	66.81M	60.31M	60.63M	50.32M
	EBIT
4.37M	1.93M	3.57M	5.38M	10.68M	4.71M
	EBITDA
6.67M	5.72M	4.58M	6.75M	12.96M	6.69M
	Net Income Common Stockholders
3.01M	1.85M	2.09M	4.48M	7.19M	2.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.58M	35.57M	37.07M	43.24M	45.85M	37.53M
	Total Assets
129.32M	128.05M	126.92M	125.84M	129.31M	124.43M
	Total Debt
1.51M	2.11M	2.91M	14.24M	18.76M	20.91M
	Net Debt
-19.45M	-16.74M	-18.32M	-8.76M	-6.99M	-6.62M
	Total Liabilities
69.31M	59.68M	56.48M	57.16M	62.22M	63.31M
	Stockholders Equity
60.00M	68.37M	70.44M	68.68M	67.09M	61.12M
Cash Flow		Free Cash Flow
4.15M	3.24M	5.97M	2.88M	17.58M	8.88M
	Operating Cash Flow
11.99M	4.86M	7.76M	4.94M	19.11M	10.01M
	Investing Cash Flow
3.43M	-1.47M	-1.11M	-2.38M	-13.75M	-13.25M
	Financing Cash Flow
-11.17M	-5.76M	-8.42M	-5.31M	-7.14M	15.86M

TECSYS Inc. J Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 40.35 is below the 20-day moving average (MA) of 42.48, below the 50-day MA of 41.33, and below the 200-day MA of 42.54, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 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
CMG	75 Outperform	C$574.48M	25.61	29.19%	2.87%	32.49%	-0.20%
KXS	73 Outperform	C$5.56B	402.42	2.32%	―	15.14%	-31.45%
TCS	71 Outperform	C$598.64M	198.18	4.56%	0.82%	2.61%	46.26%
DSG	71 Outperform	$11.96B	60.64	10.66%	―	17.42%	22.81%
ENGH	68 Neutral	$1.45B	18.51	13.26%	4.49%	5.12%	-2.77%
DCBO	67 Neutral	$1.09B	34.99	41.12%	―	20.52%	246.69%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

TECSYS Inc. J Corporate Events

Tecsys Expands Global Reach with New Indian Subsidiary and Strategic Acquisition

Tecsys Inc. has announced the establishment of a new subsidiary in India and the acquisition of strategic supply chain talent and assets from Pivotree Inc. This move aims to expand Tecsys’ presence in the APAC region, enhance its global support capabilities, and strengthen its warehouse management system solutions. The acquisition, valued at C$2.7 million, includes customer contracts and intellectual property, enabling Tecsys to deliver greater value and innovation to its global customer base. This strategic expansion is a significant milestone in Tecsys’ global growth journey, positioning the company to better serve its customers with enhanced capabilities and a deeper talent pool.

Tecsys Achieves Record Revenue in Q3 2025 Driven by SaaS Growth

Tecsys Inc. reported record revenue for the third quarter of fiscal 2025, driven by a 22% increase in SaaS revenue and strong growth across key sectors. The company’s total revenue reached $45.2 million, with net profit rising to $1.2 million. The SaaS business showed significant momentum, with a 34% increase in Remaining Performance Obligation and a 33% year-to-date increase in Adjusted EBITDA. Tecsys also continued its Normal Course Issuer Bid, acquiring 38,200 shares for approximately $1.7 million.