TSS (TSSI) AI Stock Analysis

• Market Cap: $182.71M
• Dividend Yield: N/A
• Average Volume (3M): 820.01K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 2.66
• Revenue Growth: 172.33%
• EPS Growth: 8237.50%
• Country: US
• Employees: 161
• Sector: Technology
• Sector Strength: 63
• Industry: Information Technology Services
• EPS (TTM): 0.24
• Shares Outstanding: 25,028,734
• 10 Day Avg. Volume: 544,383
• 30 Day Avg. Volume: 820,011
• PEG Ratio: 0.00368
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 25.77
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

TSS's overall score reflects strong financial performance with impressive revenue growth and profitability improvements. However, the high leverage and valuation concerns pose risks. The technical indicators suggest bearish momentum, while the earnings call sentiment is highly positive, highlighting strategic expansions and growth. Overall, TSS presents potential for growth, but investors should be cautious of financial leverage and valuation metrics.

TSS Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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TSS Financial Statement Overview

Summary

TSS exhibits strong financial health, supported by impressive revenue growth, improving profit margins, and robust cash flow generation. While the balance sheet shows prudent leverage and efficient equity use, the company could benefit from bolstering equity levels to enhance financial resilience. Overall, TSS is on a positive trajectory, well-positioned for continued growth in the construction industry.

Income Statement

The company shows a strong revenue growth trend with a significant increase in total revenue from the previous annual report to the TTM period, indicating robust sales performance. The gross profit margin stands at a healthy 14.81% for TTM, and net profit margin improves to 3.59% from a marginal 0.14% previously. The company's EBIT and EBITDA margins are also improving, showcasing operational efficiency gains. However, historical volatility in net income indicates some risk in maintaining stable profitability.

Balance Sheet

TSS demonstrates a stable balance sheet with a low debt-to-equity ratio of 0.51, indicating conservative leverage. The equity ratio of 11.38% shows that a modest portion of the company's assets is financed by equity, which is typical in the construction industry. Return on equity has improved significantly to 57.48%, reflecting efficient use of shareholder capital. However, overall equity levels remain relatively low, which could pose a risk if financial conditions tighten.

Cash Flow

The company reports strong cash flow performance with an impressive free cash flow growth rate and a high free cash flow to net income ratio. The operating cash flow to net income ratio is also robust, indicating healthy cash generation relative to reported earnings. The positive cash flow trends underscore TSS's ability to sustain operations and fund growth initiatives from internal sources, although historical fluctuations in operating cash flow warrant caution.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
54.40M	30.64M	27.41M	45.06M	32.78M
	Gross Profit
11.00M	8.98M	6.36M	6.80M	6.59M
	EBIT
1.75M	914.00K	-831.00K	-400.00K	480.00K
	EBITDA
2.07M	1.30M	-266.00K	1.02M	850.00K
	Net Income Common Stockholders
74.00K	-73.00K	-1.30M	79.00K	126.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.83M	20.40M	7.99M	19.01M	8.68M
	Total Assets
25.60M	31.41M	19.28M	23.81M	17.57M
	Total Debt
4.32M	4.78M	7.61M	3.19M	3.63M
	Net Debt
-7.51M	-15.62M	-387.00K	-15.82M	-5.05M
	Total Liabilities
22.05M	28.47M	17.08M	20.63M	14.70M
	Stockholders Equity
3.55M	2.93M	2.20M	3.18M	2.87M
Cash Flow		Free Cash Flow
-8.53M	14.18M	-10.52M	9.60M	2.42M
	Operating Cash Flow
-8.27M	14.71M	-10.45M	10.00M	3.02M
	Investing Cash Flow
-257.00K	-536.00K	-64.00K	-396.00K	-419.00K
	Financing Cash Flow
-40.00K	-1.77M	-504.00K	733.00K	-96.00K

TSS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.27
• 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 TSSI, the sentiment is Negative. The current price of 7.27 is above the 20-day moving average (MA) of 7.13, below the 50-day MA of 8.99, and below the 200-day MA of 8.16, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 63.36 is Neutral, 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
TSSI	68 Neutral	$182.71M	30.34	111.84%	―	172.33%	8237.50%
III	61 Neutral	$176.61M	64.55	2.86%	4.96%	-14.93%	-54.76%
Sector *	59 Neutral	$10.71B	10.35	-6.77%	3.02%	7.32%	-11.27%
CSPI	54 Neutral	$169.35M	42,850.00	0.17%	0.73%	-9.99%	-97.85%
TTEC	49 Neutral	$191.69M	―	-75.62%	1.50%	-10.32%	-3860.81%
UIS	44 Neutral	$282.85M	―	192.24%	―	-0.35%	55.51%
TLS	44 Neutral	$199.90M	―	-36.71%	―	-25.52%	-46.44%

TSS Corporate Events

TSS Appoints Michael Fahy, Eyes Global Growth and AI Leadership

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.