TSS (TSSI) AI Stock Analysis

• Market Cap: $500.35M
• Dividend Yield: N/A
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 49.6
• Beta (1Y): 3.59
• Revenue Growth: 328.80%
• EPS Growth: 339.87%
• Country: US
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.06
• Shares Outstanding: 28,364,244
• 10 Day Avg. Volume: 1,619,208
• 30 Day Avg. Volume: 2,528,667
• 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: 1.50
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 23.39
• Enterprise Value/Ebitda: 51.71
• 1Y Price Target: $20.50
• Price Target Upside: 21.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $19.50 ▲(15.45% Upside)

TSSI's overall stock score reflects strong financial performance and positive earnings call highlights, particularly in revenue growth and operational success. However, high leverage, declining gross margins, and a high P/E ratio suggest caution. The technical analysis indicates mixed signals, contributing to a balanced outlook.

TSS Business Overview & Revenue Model

Company Description

TSS (TSSI) is a leading provider of technology solutions and services, focusing primarily on sectors such as telecommunications, information technology, and cybersecurity. The company specializes in delivering innovative software, hardware, and consulting services that enhance operational efficiency and security for its clients. With a commitment to quality and customer satisfaction, TSS offers a broad range of products including network management systems, data analytics tools, and cybersecurity frameworks tailored for both enterprise and government clients.

How the Company Makes Money

TSS generates revenue through multiple streams, primarily focusing on the sale of software licenses, subscription services, and consulting fees. The company charges clients for its proprietary software solutions, which provide essential functionalities for network management and cybersecurity. Additionally, TSS offers subscription-based services that include ongoing support, maintenance, and updates, ensuring a continuous revenue flow. Consulting services, where TSS provides expert advice and implementation strategies for its clients, also contribute significantly to its earnings. The company has established strategic partnerships with major technology firms, enhancing its service offerings and expanding its market reach, which in turn drives revenue growth.

TSS Financial Statement Overview

Summary

TSS showcases strong financial performance with impressive revenue growth and improving profitability margins. However, the high leverage and low equity ratio warrant caution. Robust cash flow generation supports operational stability and future growth initiatives.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.02M	148.14M	54.40M	30.64M	27.41M	45.06M
Gross Profit	32.13M	22.35M	11.00M	8.98M	6.36M	6.80M
EBITDA	14.53M	9.48M	2.07M	1.30M	-266.00K	1.02M
Net Income	9.02M	5.98M	74.00K	-73.00K	-1.30M	79.00K
Balance Sheet
Total Assets	139.47M	96.57M	25.60M	31.41M	19.28M	23.81M
Cash, Cash Equivalents and Short-Term Investments	36.84M	23.22M	11.83M	20.40M	7.99M	19.01M
Total Debt	44.08M	32.71M	4.32M	4.78M	7.61M	3.19M
Total Liabilities	129.93M	89.43M	22.05M	28.47M	17.08M	20.63M
Stockholders Equity	9.54M	7.14M	3.55M	2.93M	2.20M	3.18M
Cash Flow
Free Cash Flow	21.41M	6.81M	-8.53M	14.18M	-10.52M	9.60M
Operating Cash Flow	53.95M	15.30M	-8.27M	14.71M	-10.45M	10.00M
Investing Cash Flow	-32.54M	-8.48M	-257.00K	-536.00K	-64.00K	-396.00K
Financing Cash Flow	12.12M	4.58M	-40.00K	-1.77M	-504.00K	733.00K

TSS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSSI, the sentiment is Neutral. The current price of 16.89 is below the 20-day moving average (MA) of 18.00, above the 50-day MA of 16.62, and above the 200-day MA of 15.49, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 63.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSSI.

TSS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBEX	―	$499.32M	15.74	24.57%	―	9.77%	34.36%
HCKT	―	$490.79M	30.78	15.27%	2.63%	4.18%	-51.62%
TSSI	―	$500.35M	49.59	122.80%	―	328.80%	339.87%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TLS	―	$532.19M	―	-41.49%	―	-13.76%	-75.18%
XRX	―	$431.59M	―	-72.72%	12.39%	-4.99%	-1016.81%
CNDT	―	$372.82M	76.62	2.21%	―	-14.36%	-73.74%

TSS Corporate Events

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.

TSS Inc. Reports Robust Growth Amid AI Demand

The recent earnings call for TSS Inc. painted a picture of robust growth and a promising future, despite some challenges. The company reported significant increases in revenue and operational capacity, largely fueled by the burgeoning demand for AI infrastructure. While there were some hurdles, such as a decline in facilities management revenue and a decrease in gross margins, the overall sentiment was optimistic, with a strong performance and positive outlook for the future.

TSS, Inc. Reports Robust Q2 2025 Growth

TSS, Inc. is a data center services company specializing in the integration of AI and high-performance computing infrastructure, providing essential services to the technology sector.