TSS (TSSI) AI Stock Analysis

• Market Cap: $674.30M
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 81.5
• Beta (1Y): 3.77
• Revenue Growth: 262.87%
• EPS Growth: 873.76%
• Country: US
• Employees: 161
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.12
• Shares Outstanding: 25,020,498
• 10 Day Avg. Volume: 2,496,070
• 30 Day Avg. Volume: 2,615,670
• PEG Ratio: 1.07
• Price to Book (P/B): 48.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.22
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 17.83
• Enterprise Value/Ebitda: 15.60
• 1Y Price Target: $26.00
• Price Target Upside: -10.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $29.00 ▲(0.17%Upside)

TSSI's overall score is bolstered by strong financial performance and earnings call insights, reflecting robust revenue growth and strategic initiatives. However, high leverage, valuation concerns, and specific operational challenges temper the outlook.

TSS Business Overview & Revenue Model

Company Description

TSS, 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 Money

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TSS Financial Statement Overview

Summary

TSS demonstrates strong financial performance with a significant increase in revenue and profitability margins, although the high leverage and low equity ratio pose potential risks. Robust cash flow generation supports 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.

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

TSS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 28.95 is above the 20-day moving average (MA) of 25.35, above the 50-day MA of 20.91, and above the 200-day MA of 12.47, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSSI.

TSS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSSI	76 Outperform	$674.30M	81.55	137.01%	―	262.87%	873.76%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
III	58 Neutral	$219.33M	30.51	8.09%	3.96%	-12.26%	―
CSPI	56 Neutral	$114.12M	40,175.00	-3.16%	1.09%	-11.53%	-128.96%
UIS	55 Neutral	$314.83M	―	192.24%	―	-1.72%	82.15%
TTEC	54 Neutral	$252.56M	―	-73.85%	1.14%	-9.86%	-2426.25%
TLS	50 Neutral	$207.23M	―	-38.32%	―	-21.83%	-67.07%

TSS Corporate Events

TSS Holds Annual Stockholders Meeting on June 4

On June 4, 2025, TSS Company held its annual meeting of stockholders where five proposals were presented for approval. The stockholders elected Class II directors for a term expiring in 2028, approved the compensation of Named Executive Officers, decided on a three-year frequency for future advisory votes on executive compensation, and adopted the 2025 Omnibus Incentive Compensation Plan.