TSS (TSSI) AI Stock Analysis

• Market Cap: $223.55M
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 39.4
• Beta (1Y): 4.01
• Revenue Growth: 91.66%
• EPS Growth: 7.52%
• Country: US
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 28,845,037
• 10 Day Avg. Volume: 3,044,320
• 30 Day Avg. Volume: 2,133,502
• PEG Ratio: <0.01
• Price to Book (P/B): 36.69
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 38.44
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 41.81
• 1Y Price Target: $20.50
• Price Target Upside: 21.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $7.50 ▼(-55.60% Downside)

The overall stock score is primarily impacted by financial performance challenges and bearish technical indicators. While the earnings call provided a positive outlook with strategic investments and growth in key segments, the current financial and technical conditions weigh heavily on the stock's attractiveness.

TSS Business Overview & Revenue Model

Company Description

TSSI (TSS International) is a leading provider of integrated technology solutions and services, specializing in the telecommunications and information technology sectors. The company offers a wide range of products including network management software, cybersecurity solutions, and IT consulting services. TSSI caters to various industries including healthcare, finance, and government, focusing on enhancing operational efficiency and ensuring data security for its clients.

How the Company Makes Money

TSSI generates revenue through multiple streams, primarily by providing software licensing and subscription services for its proprietary network management and cybersecurity solutions. Additionally, the company earns income from consulting services, where it advises clients on IT infrastructure optimization and compliance with data protection regulations. TSSI also engages in strategic partnerships with hardware manufacturers and telecommunications providers, which allow it to bundle its software services with their products, thereby creating additional sales opportunities. Furthermore, the company benefits from recurring revenue through maintenance and support contracts, ensuring ongoing customer engagement and a steady cash flow.

TSS Financial Statement Overview

Summary

TSSI faces financial challenges with declining revenues and profitability margins, and significant cash flow difficulties. Despite some improvement in leverage, the overall financial health requires strategic interventions to enhance revenue growth, operational efficiency, and cash flow stability.

Income Statement

The income statement shows a mixed performance. While the company has managed to maintain a positive net profit margin of 2.08% in the TTM, it has experienced a significant revenue decline of 10.72%. Gross profit margins have also decreased over time, indicating potential cost management issues. The EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved to 0.35 in the TTM, indicating better leverage management compared to previous years. However, the return on equity has decreased to 21.81%, and the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing.

Cash Flow

The cash flow statement reveals significant challenges. The company has a negative operating cash flow and free cash flow in the TTM, with a drastic decline in free cash flow growth. The free cash flow to net income ratio is high, indicating potential cash flow management issues. These factors suggest liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.84M	148.14M	54.40M	30.64M	27.41M	45.06M
Gross Profit	28.87M	22.35M	11.00M	8.98M	6.36M	6.80M
EBITDA	10.36M	9.48M	2.07M	1.30M	-266.00K	1.02M
Net Income	4.88M	5.98M	74.00K	-73.00K	-1.30M	79.00K
Balance Sheet
Total Assets	165.41M	96.57M	25.60M	31.41M	19.28M	23.81M
Cash, Cash Equivalents and Short-Term Investments	70.70M	23.22M	11.83M	20.40M	8.00M	19.01M
Total Debt	41.35M	32.71M	4.32M	4.78M	7.61M	3.19M
Total Liabilities	102.00M	89.43M	22.05M	28.47M	17.08M	20.63M
Stockholders Equity	63.41M	7.14M	3.55M	2.93M	2.20M	3.18M
Cash Flow
Free Cash Flow	-42.03M	6.81M	-8.53M	14.18M	-10.52M	9.60M
Operating Cash Flow	-3.11M	15.30M	-8.27M	14.71M	-10.45M	10.00M
Investing Cash Flow	-38.92M	-8.48M	-257.00K	-536.00K	-64.00K	-396.00K
Financing Cash Flow	71.28M	4.58M	-40.00K	-1.77M	-504.00K	733.00K

TSS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.89
• 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 TSSI, the sentiment is Negative. The current price of 16.89 is above the 20-day moving average (MA) of 14.61, above the 50-day MA of 16.40, and above the 200-day MA of 15.53, indicating a bearish trend. The MACD of -2.65 indicates Positive momentum. The RSI at 22.61 is Positive, neither overbought nor oversold. The STOCH value of 3.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSSI.

TSS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBEX	77 Outperform	$468.12M	12.52	26.29%	―	12.86%	54.95%
HCKT	64 Neutral	$485.84M	29.49	10.27%	2.48%	0.68%	-67.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TLS	52 Neutral	$415.97M	―	-23.73%	―	17.44%	41.97%
TSSI	47 Neutral	$223.55M	39.42	13.73%	―	91.66%	7.52%
CNDT	44 Neutral	$284.37M	―	-15.87%	―	-12.45%	-142.77%
XRX	39 Underperform	$335.46M	―	-93.23%	13.89%	3.67%	29.09%

TSS Corporate Events

TSS, Inc. Reports Strong Year-to-Date Revenue Growth

TSS, Inc., a data center services company based in Georgetown, Texas, specializes in integrating AI and high-performance computing infrastructure, offering related services to support digital transformation. In its third quarter of 2025, TSS reported a significant year-to-date revenue increase of 88%, reaching $184.8 million, despite a challenging quarter with a 40% drop in quarterly revenues compared to the previous year. The company attributes this to a strong performance in its Systems Integration segment, which saw a 20% increase in revenues, although overall quarterly results were impacted by lower-than-expected rack volumes and operational adjustments.

TSS Subsidiary Amends Credit Agreement for $5M Loan

On September 17, 2025, VTC, L.L.C., a subsidiary of TSS, Inc., amended its Credit Agreement with Susser Bank to include an additional $5,000,000 term loan. This amendment aims to replenish cash reserves used for capital expenditures, aligning these expenses with long-term debt financing.

The most recent analyst rating on (TSSI) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on TSS stock, see the TSSI Stock Forecast page.