Topicus.com (TOI) AI Stock Analysis

• Market Cap: C$8.42B
• Dividend Yield: N/A
• Average Volume (3M): 84.51K
• Price to Earnings (P/E): 3322.4
• Beta (1Y): 1.06
• 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: 135,103
• 30 Day Avg. Volume: 84,507
• 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$180.50
• Price Target Upside: 78.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.93
• Revenue Forecast (FY): C$2.99B

• Rating: 61 Neutral
• Price Target: C$107.00 ▲(5.94% 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 ~22% TTM revenue growth indicates broadening demand for Topicus's software across its verticals. Over 2-6 months this underpins scale benefits, deeper client footprints, and higher recurring revenue potential from licenses and subscriptions, supporting long-term top-line resilience.

Cash Generation

Healthy FCF growth and strong cash conversion despite a net loss demonstrate durable cash-generation capacity. This supports reinvestment, funding of growth initiatives, and servicing obligations without immediate reliance on external financing, improving strategic optionality over the medium term.

Operational Efficiency

Robust EBIT/EBITDA margins reflect efficient cost structure and scalable software economics. Sustained margins provide capacity to invest in R&D and customer success while maintaining profitability at the operating level, reinforcing competitive positioning and margin sustainability over multiple quarters.

Negative Factors

Negative Net Income

A persistent net loss erodes retained earnings and can limit long-term reinvestment or dividend capacity. Over months this may pressure equity cushions, constrain strategic investments, and force prioritization between growth spending and profitability remediation if underlying drivers aren't corrected.

High Leverage

Elevated debt-to-equity increases interest and refinancing risk, reducing financial flexibility. In a 2-6 month horizon, leverage can limit the firm's ability to pursue acquisitions or scale investments and makes results more sensitive to cash-flow variability and macroeconomic stress.

Public Sector Concentration

Heavy exposure to public-sector and institutional clients brings stability but creates structural risk from budget cycles, procurement delays, and policy shifts. Over months, unpredictable public funding or slow decision timelines can compress sales cadence and delay revenue recognition.

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 shows strong revenue growth and operational efficiency, evidenced by healthy EBIT and EBITDA margins. However, the negative net income in the TTM impacts profitability metrics. The balance sheet reflects high leverage, which could be risky if not managed well, but the company is generating strong returns on equity. Cash flow remains robust, supporting the company's financial health. Overall, while there are challenges, particularly with net income and leverage, the company demonstrates solid operational and cash flow performance.

Income Statement

Topicus.com has demonstrated strong revenue growth with a 22.22% increase in TTM, indicating robust demand for its offerings. The gross profit margin remains stable at around 36.58%, reflecting efficient cost management. However, the company reported a negative net income in the TTM, resulting in a negative net profit margin, which is a concern. The EBIT and EBITDA margins are healthy at 16.80% and 29.87% respectively, showcasing operational efficiency despite the net loss.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.15, indicating significant leverage, which could pose a risk if not managed properly. The return on equity is strong at 28.30%, suggesting effective use of equity to generate profits. The equity ratio is moderate, implying a balanced asset structure. Overall, while leverage is high, the company is generating good returns on equity.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth of 12.31% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.46, which is reasonable given the negative net income. The free cash flow to net income ratio is high at 0.97, highlighting efficient cash conversion despite the net loss. Overall, the cash flow position is strong, supporting operational needs and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.29B	1.12B	916.68M	742.54M	493.99M
Gross Profit	481.25M	471.35M	399.63M	325.55M	269.36M	190.79M
EBITDA	278.04M	376.30M	313.11M	251.99M	-2.08B	159.32M
Net Income	7.15M	91.99M	71.75M	87.61M	-2.22B	63.68M
Balance Sheet
Total Assets	2.43B	1.54B	1.44B	1.29B	1.03B	641.14M
Cash, Cash Equivalents and Short-Term Investments	524.82M	206.16M	179.06M	136.77M	75.33M	55.64M
Total Debt	837.69M	351.83M	287.83M	328.88M	226.91M	103.16M
Total Liabilities	1.73B	1.00B	842.67M	827.01M	672.69M	376.46M
Stockholders Equity	422.07M	311.28M	339.18M	266.10M	-705.60M	264.68M
Cash Flow
Free Cash Flow	372.60M	339.34M	238.78M	195.71M	171.04M	149.46M
Operating Cash Flow	382.85M	347.63M	246.56M	203.01M	176.42M	151.87M
Investing Cash Flow	-686.10M	-110.22M	-127.20M	-133.41M	-213.43M	-74.25M
Financing Cash Flow	345.50M	-211.60M	-77.98M	-8.15M	56.69M	-50.02M

Topicus.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.00
• 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:TOI, the sentiment is Negative. The current price of 101 is below the 20-day moving average (MA) of 116.13, below the 50-day MA of 121.93, and below the 200-day MA of 153.37, indicating a bearish trend. The MACD of -5.60 indicates Positive momentum. The RSI at 26.81 is Positive, neither overbought nor oversold. The STOCH value of 10.98 is Positive, 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
HAI	67 Neutral	C$228.69M	1,201.43	-1.32%	―	-5.56%	-124.69%
BB	65 Neutral	$2.86B	197.15	2.88%	―	-9.05%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TOI	61 Neutral	C$8.42B	3,322.37	-0.05%	―	25.22%	-97.97%
DND	55 Neutral	C$260.62M	-1.69	―	1.80%	2.47%	19.37%
CVO	54 Neutral	C$579.31M	-12.73	-18.09%	―	12.20%	-8.46%
MTLO	41 Neutral	C$5.84M	-0.44	―	―	-13.42%	-126.00%

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.

The most recent analyst rating on (TSE:TOI) stock is a Hold with a C$154.00 price target. To see the full list of analyst forecasts on Topicus.com stock, see the TSE:TOI Stock Forecast page.