Topicus.com (TOI) AI Stock Analysis

• Market Cap: C$10.31B
• Dividend Yield: N/A
• Average Volume (3M): 72.47K
• Price to Earnings (P/E): 4046.1
• Beta (1Y): 0.94
• Revenue Growth: 25.22%
• EPS Growth: -97.97%
• Country: CA
• Employees: 4,250
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.52
• Shares Outstanding: 83,338,850
• 10 Day Avg. Volume: 69,288
• 30 Day Avg. Volume: 72,472
• PEG Ratio: -5.53
• Price to Book (P/B): 21.69
• Price to Sales (P/S): 5.22
• P/FCF Ratio: 19.90
• 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$195.50
• Price Target Upside: 58.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.79
• Revenue Forecast (FY): C$2.52B

• Rating: 61 Neutral
• Price Target: C$130.00 ▲(5.69% Upside)

The overall stock score of 61 reflects strong financial performance, particularly in cash flow and operational efficiency, despite challenges with net income and leverage. Technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation due to a very high P/E ratio. The absence of earnings call data and corporate events limits insights into future strategic direction.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for Topicus.com's offerings, supporting long-term business expansion and market presence.

Cash Flow Strength

Strong cash flow growth enhances Topicus.com's ability to fund operations and invest in future growth, ensuring financial stability.

Operational Efficiency

High operational efficiency through strong EBIT and EBITDA margins allows Topicus.com to maintain profitability despite net income challenges.

Negative Factors

High Leverage

Significant leverage could pose financial risk if not managed properly, potentially impacting long-term financial flexibility and stability.

Negative Net Income

Negative net income affects profitability metrics and could hinder reinvestment in growth opportunities, impacting future performance.

Valuation Concerns

An extremely high P/E ratio suggests potential overvaluation, which may affect investor perception and future capital raising efforts.

Topicus.com Business Overview & Revenue Model

Company Description

Topicus.com Inc. provides vertical market software and vertical market platforms in Europe. The company acquires, builds, and manages various vertical market software businesses, which offer software solutions that address the particular needs of customers. It serves accountancy, agriculture, associations, automotive, central government, education, facility management, finance, healthcare, hospitality, legal, local government, manufacturing, mobility, real estate, and retail vertical markets. The company was incorporated in 2020 and is headquartered in Toronto, Canada.

How the Company Makes Money

Topicus.com generates revenue primarily through the sale of software licenses and subscription services for its various digital solutions. The company also earns money through consulting services, custom software development, and ongoing maintenance and support agreements with clients. Key revenue streams include long-term contracts with public sector organizations, educational institutions, and healthcare providers. Additionally, Topicus may benefit from partnerships with other technology firms and government entities, enhancing its market reach and service offerings.

Topicus.com Financial Statement Overview

Summary

Topicus.com exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects prudent financial management with a balanced debt-to-equity ratio and strong return on equity. Cash flow generation is robust, although recent declines in free cash flow growth should be monitored. Overall, the company is well-positioned in the software infrastructure industry, but attention to slowing revenue growth and free cash flow trends is advised.

Income Statement

Topicus.com has demonstrated consistent revenue growth, with a TTM revenue growth rate of 4.53%. The company maintains healthy profitability margins, including a gross profit margin of 36.54% and an EBIT margin of 16.23%. The net profit margin is stable at 7.34%, indicating effective cost management. However, the revenue growth rate has slowed compared to previous years, which could be a concern for future growth prospects.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.92, indicating a balanced approach to leveraging. The return on equity is strong at 31.13%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. The company has improved its debt management over the years, but the increase in total debt warrants monitoring.

Cash Flow

Operating cash flow is robust, with a TTM operating cash flow to net income ratio of 0.39, indicating strong cash generation relative to net income. Free cash flow growth has declined by 6.73% in the TTM, which could impact future investments and shareholder returns. The free cash flow to net income ratio remains high at 97.82%, showcasing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.29B	1.12B	916.68M	742.54M	493.99M
Gross Profit	537.28M	471.35M	399.63M	325.55M	269.36M	190.79M
EBITDA	249.69M	376.30M	313.11M	251.99M	-2.08B	159.32M
Net Income	-41.70M	91.99M	71.75M	87.61M	-2.22B	63.68M
Balance Sheet
Total Assets	3.97B	1.54B	1.44B	1.29B	1.03B	641.14M
Cash, Cash Equivalents and Short-Term Investments	858.33M	206.16M	179.06M	136.77M	75.33M	55.64M
Total Debt	1.37B	351.83M	287.83M	328.88M	226.91M	103.16M
Total Liabilities	2.83B	1.00B	842.67M	827.01M	672.69M	376.46M
Stockholders Equity	690.29M	311.28M	339.18M	266.10M	-705.60M	264.68M
Cash Flow
Free Cash Flow	401.25M	339.34M	238.78M	195.71M	171.04M	149.46M
Operating Cash Flow	412.57M	347.63M	246.56M	203.01M	176.42M	151.87M
Investing Cash Flow	-851.61M	-110.22M	-127.20M	-133.41M	-213.43M	-74.25M
Financing Cash Flow	497.95M	-211.60M	-77.98M	-8.15M	56.69M	-50.02M

Topicus.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOI, the sentiment is Negative. The current price of 123 is below the 20-day moving average (MA) of 125.58, below the 50-day MA of 132.26, and below the 200-day MA of 156.57, indicating a bearish trend. The MACD of -2.88 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 55.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TOI.

Topicus.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TOI	61 Neutral	C$10.31B	4,046.05	-0.05%	―	25.22%	-97.97%
STC	56 Neutral	C$233.63M	-30.43	-2.18%	―	-4.34%	31.52%
BB	55 Neutral	C$3.57B	-178.48	2.66%	―	-13.61%	89.73%
DND	55 Neutral	C$274.06M	-1.77	―	1.84%	2.47%	19.37%
TIXT	55 Neutral	―	―	-20.44%	―	5.06%	-638.59%
CVO	54 Neutral	C$591.90M	-21.92	-18.09%	―	12.20%	-8.46%

Topicus.com Corporate Events

Topicus.com Inc. Reports Q3 2025 Financial Results with Revenue Growth but Net Loss

Topicus.com Inc. reported a 24% increase in revenue for the third quarter of 2025, reaching €387.9 million, driven primarily by acquisitions with a modest organic growth of 3%. Despite the revenue growth, the company experienced a net loss of €120.9 million due to a significant expense related to its investment in Asseco, which impacted its financial results. The company also saw improvements in cash flow from operations and free cash flow available to shareholders, indicating a strong operational performance despite the net loss.

Topicus.com Strengthens Stake in Asseco Poland with Treasury Shares Acquisition

Topicus.com Inc., in collaboration with Constellation Software Inc., has completed the acquisition of 14.84% of treasury shares in Asseco Poland S.A., following all necessary regulatory approvals. This acquisition, along with a previously announced 9.99% stake, strengthens Topicus’ position in Asseco and activates a shareholders’ agreement with the Adam Góral Family Foundation, potentially enhancing Topicus’ influence and strategic operations within the European software market.

Topicus.com Expands Stake in Asseco Poland with Treasury Shares Acquisition

Topicus.com Inc., through its subsidiary TSS Europe B.V., has completed the acquisition of 14.84% of treasury shares in Asseco Poland S.A., following the necessary regulatory approvals. This acquisition, along with a previously announced 9.99% share acquisition, strengthens Topicus’ position in Asseco and activates a shareholders’ agreement with the Adam Góral Family Foundation, potentially impacting Topicus’ influence and collaboration within the software industry.