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TSS Inc (TSSI)
NASDAQ:TSSI
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TSS
(NASDAQ:TSSI)
Rating:66Neutral
Price Target:―
TSS (TSSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$349.29M
Dividend YieldN/A
Average Volume (3M)1.95M
Price to Earnings (P/E)33.0
Beta (1Y)3.55
Revenue Growth262.87%
EPS Growth873.76%
CountryUS
Employees161
SectorTechnology
Sector Strength76
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding25,020,498
10 Day Avg. Volume4,476,680
30 Day Avg. Volume1,951,207
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)36.30
Price to Sales (P/S)0.00
P/FCF Ratio38.75
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit13.36
Enterprise Value/Ebitda11.68
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TSS Business Overview & Revenue Model
Company DescriptionTSS, Inc. provides services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013. TSS, Inc. was incorporated in 2004 and is headquartered in Round Rock, Texas.
How the Company Makes Moneynull
TSS Financial Statement Overview
Summary
TSS demonstrates strong financial performance with impressive revenue growth and improving profitability margins. However, high leverage and a low equity ratio pose potential risks, despite robust cash flow generation supporting operational stability and future growth.Income Statement
TSS has shown a strong revenue growth trajectory with a notable increase from $30.64 million in 2022 to $231.21 million in TTM, indicating robust demand for its services. The gross profit margin stands at 12.43% for TTM, reflecting good control over production costs. The net profit margin of 3.87% in TTM is a positive sign of effective cost management, although there is room for improvement. The EBIT margin of 5.35% and EBITDA margin of 5.66% in TTM show operational efficiency improvements over time.85
Very Positive
Balance Sheet
The debt-to-equity ratio of 2.63 in TTM suggests a relatively high leverage, which could pose financial risk if not managed carefully. The equity ratio of 8.27% indicates a lower equity base relative to total assets, highlighting potential stability concerns. However, the significant increase in stockholders' equity from $2.93 million in 2022 to $9.39 million in TTM is a positive indicator of financial strengthening.65
Positive
Cash Flow
TSS has demonstrated strong cash flow generation with a significant increase in operating cash flow to $33.29 million in TTM. The operating cash flow to net income ratio is 3.72, indicating efficient conversion of income into cash. The free cash flow to net income ratio is 1.11, reflecting sound capital expenditure management. The free cash flow growth rate is commendable, supporting operational expansion.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 231.21M | 148.14M | 54.40M | 30.64M | 27.41M | 45.06M | Gross Profit |
| 28.73M | 22.35M | 11.00M | 8.98M | 6.36M | 6.80M | EBIT |
| 12.36M | 8.50M | 1.75M | 914.00K | -831.00K | -400.00K | EBITDA |
| 13.09M | 9.48M | 2.07M | 1.30M | -266.00K | 1.02M | Net Income Common Stockholders |
| 8.94M | 5.98M | 74.00K | -73.00K | -1.30M | 79.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.83M | 23.22M | 11.83M | 20.40M | 7.99M | 19.01M | Total Assets |
| 25.60M | 96.57M | 25.60M | 31.41M | 19.28M | 23.81M | Total Debt |
| 4.32M | 32.71M | 4.32M | 4.78M | 7.61M | 3.19M | Net Debt |
| -7.51M | 9.48M | -7.51M | -15.62M | -387.00K | -15.82M | Total Liabilities |
| 22.05M | 89.43M | 22.05M | 28.47M | 17.08M | 20.63M | Stockholders Equity |
| 3.55M | 7.14M | 3.55M | 2.93M | 2.20M | 3.18M |
| Cash Flow | Free Cash Flow | ||||
| 9.97M | 6.81M | -8.53M | 14.18M | -10.52M | 9.60M | Operating Cash Flow |
| 33.29M | 15.30M | -8.27M | 14.71M | -10.45M | 10.00M | Investing Cash Flow |
| -23.32M | -8.48M | -257.00K | -536.00K | -64.00K | -396.00K | Financing Cash Flow |
| 2.99M | 4.58M | -40.00K | -1.77M | -504.00K | 733.00K |
TSS Technical Analysis
Positive
11.70
Price Trends
8.32
Positive
10.50
Positive
8.66
Positive
Market Momentum
1.14
Negative
58.96
Neutral
56.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSSI, the sentiment is Positive. The current price of 11.7 is above the 20-day moving average (MA) of 8.74, above the 50-day MA of 8.32, and above the 200-day MA of 8.66, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSSI.
TSS Risk Analysis
TSS disclosed 23 risk factors in its most recent earnings report. TSS reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TSS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $228.49M | 30.84 | 8.09% | 3.80% | -12.26% | ― | |
66 Neutral | $349.29M | 32.96 | 137.01% | ― | 262.87% | 873.76% | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% | |
59 Neutral | $148.24M | 40,175.00 | -3.16% | 0.78% | -11.53% | -128.96% | |
58 Neutral | $372.39M | ― | 192.24% | ― | -1.72% | 82.15% | |
56 Neutral | $246.34M | ― | -73.85% | 1.08% | -9.86% | -2426.25% | |
47 Neutral | $192.53M | ― | -38.32% | ― | -21.83% | -67.07% |
* Technology Sector Average
Performance Comparison
TSSI
TSS
11.34
9.94
710.00%
III
Information Services Group
4.76
1.76
58.67%
TTEC
TTEC Holdings
5.18
-1.49
-22.34%
UIS
Unisys
4.99
0.30
6.40%
CSPI
CSP
15.43
0.14
0.92%
TLS
Telos
2.48
-1.58
-38.92%
TSS Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 31.91%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strategic expansion into new facilities, driven by demand for AI infrastructure. However, challenges remain with declining facilities management revenue and increased interest expenses. Despite these issues, the company shows strong forward momentum and optimism for future growth.Q1-2025 Updates
Positive Updates
Record Revenue Growth
TSS Inc. reported a total revenue growth of 523% year-over-year, reaching $99 million in Q1 2025 compared to $15.9 million in Q1 2024.
Procurement Services Surge
Procurement services revenues grew by over 600% to $90.2 million, making up a significant portion of the company's overall growth.
Systems Integration Growth
Systems integration segment revenue increased by 253%, driven by the demand for AI-enabled infrastructure.
New Facility Launch
Production began at a new 213,000 square foot facility in Georgetown, Texas, which is expected to reach full production capacity by June.
Negative Updates
Decline in Facilities Management Revenue
Facilities management revenue declined by 40% year-over-year, primarily affecting the modular data center business.
Gross Margin Pressure
Consolidated gross margin decreased to 9.3% from 17.1% in the prior year quarter, primarily due to the revenue mix shift towards lower-margin procurement services.
Interest Expense Increase
Interest expense increased significantly from $328,000 to $1.5 million year-over-year due to factoring costs and new bank loans.
Company Guidance
During the TSS Inc. First Quarter 2025 Financial Results Conference Call, the company reported substantial growth metrics, highlighting a 523% year-over-year increase in total revenue, reaching $99 million, up from $15.9 million in the first quarter of 2024. Procurement services saw a revenue surge of over 600% to more than $90 million, while systems integration revenue climbed over 250%. The diluted earnings per share rose to $0.12, a significant improvement from just over break-even in the prior year. Gross profit increased 674% to $7 million, and the company generated positive cash flow from operations, amounting to $20.6 million. Despite a 40% decline in facilities management revenue, the company remains optimistic about its growth potential in the evolving AI infrastructure market. TSS has secured a multi-lease agreement on a new 213,000 square foot facility in Georgetown, Texas, which is progressing as planned, with expectations to reach full production capacity by June. The company's strategic investment in AI rack integration infrastructure, supported by strong OEM partnerships, is forecasted to yield a payback period of approximately two years, underscoring a highly attractive return on invested capital.TSS Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TSS Appoints Michael Fahy, Eyes Global Growth and AI Leadership
Positive
Oct 8, 2024
Michael Fahy has joined TSS, Inc. as an independent director, bringing extensive leadership experience from Neovia Logistics and DB Schenker Americas. Known for driving digital transformation and revenue growth, Fahy’s expertise is expected to significantly contribute to TSS’s growth strategy, particularly in AI and high-performance computing infrastructure. His appointment is seen as a strategic move to leverage his global insights and operational skills to enhance TSS’s capabilities and market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.