TECSYS, Inc. (TCS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

GDI Integrated Facility Services, Inc.

Diversified Royalty Corp.

Calian Group Ltd.

Galaxy Digital Holdings Ltd.

CCL Industries, Inc.

Information Services Corp.

CAE, Inc.

TECSYS, Inc.

CGI, Inc.

K-Bro Linen, Inc.

Brookfield Business Partners LP

Why is TECSYS, Inc. ?

Poor Management Efficiency with a low ROE of 6.45%

The company has been able to generate a Return on Equity (avg) of 6.45% signifying low profitability per unit of shareholders funds

With ROE of 8.66%, it has a very expensive valuation with a 7.79 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.87%, its profits have risen by 16.4% ; the PEG ratio of the company is 5.5

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 29.60% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.87% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TECSYS, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TECSYS, Inc.

-12.87%

5.31

38.81%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.40%

EBIT Growth (5y)

-10.61%

EBIT to Interest (avg)

2.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

2.54

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

109.34%

Pledged Shares

Institutional Holding

0.52%

ROCE (avg)

8.98%

ROE (avg)

6.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.79

EV to EBIT

111.81

EV to EBITDA

56.74

EV to Capital Employed

15.12

EV to Sales

2.67

PEG Ratio

5.45

Dividend Yield

ROCE (Latest)

13.52%

ROE (Latest)

8.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 20.06 MM

NET PROFIT(HY)

At CAD 3.5 MM has Grown at 79.4%

ROCE(HY)

Highest at 9.26%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.59 times

RAW MATERIAL COST(Y)

Fallen by -11.31% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 5.59

OPERATING PROFIT(Q)

Highest at CAD 2.87 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.95 %

-7What is not working for the Company

INTEREST(HY)

At CAD 0.07 MM has Grown at 69.05%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 76.27%

Here's what is working for TECSYS, Inc.

Operating Cash Flow

Highest at CAD 20.06 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Profit

At CAD 3.5 MM has Grown at 79.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 5.59 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit

Highest at CAD 2.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 5.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at CAD 5.59

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -11.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 1.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for TECSYS, Inc.

Interest

At CAD 0.07 MM has Grown at 69.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Dividend Payout Ratio

Lowest at 76.27%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)