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Topicus.com, Inc.

  • Market Cap: Mid Cap
  • Industry: Software Products
  • ISIN: CA89072T1021
CAD
86.34
-0.53 (-0.61%)

Sep 22

TSX

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Open Text Corp.
The Descartes Systems Group, Inc.
Enghouse Systems Ltd.
Constellation Software, Inc.
BlackBerry Ltd.
Kinaxis, Inc.
Lumine Group, Inc.
Topicus.com, Inc.
Lightspeed Commerce, Inc.
Dye & Durham Ltd.
Docebo, Inc.

Why is Topicus.com, Inc. ?

1
High Management Efficiency with a high ROCE of 40.23%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.03 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 25.11% and Operating profit at 21.43%
4
Positive results in Mar 26
  • OPERATING CASH FLOW(Y) Highest at CAD 668.48 MM
  • NET PROFIT(Q) At CAD 62.17 MM has Grown at 243.12%
  • RAW MATERIAL COST(Y) Fallen by -3.3% (YoY)
5
With ROE of 39.29%, it has a very expensive valuation with a 9.54 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 -51.37%, its profits have risen by 36.2% ; the PEG ratio of the company is 0.7
6
Majority shareholders : FIIs
7
Below par performance in long term as well as near term
  • Along with generating -51.37% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Topicus.com, Inc. should be less than 10%
  2. Overall Portfolio exposure to Software Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Topicus.com, Inc. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Topicus.com, Inc.
-46.69%
-0.40
42.18%
S&P/TSX 60
20.36%
2.23
12.57%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
25.11%
EBIT Growth (5y)
21.43%
EBIT to Interest (avg)
8.32
Debt to EBITDA (avg)
0.46
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
1.67
Tax Ratio
48.14%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
35.40%
ROE (avg)
46.19%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
9.54
EV to EBIT
19.88
EV to EBITDA
10.78
EV to Capital Employed
7.61
EV to Sales
3.09
PEG Ratio
0.68
Dividend Yield
NA
ROCE (Latest)
38.27%
ROE (Latest)
39.29%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

8What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CAD 736.69 MM

NET PROFIT(HY)

At CAD 109.98 MM has Grown at 84.32%

RAW MATERIAL COST(Y)

Fallen by -1.32% (YoY

CASH AND EQV(HY)

Highest at CAD 1,057.51 MM

DEBT-EQUITY RATIO (HY)

Lowest at 43.89 %

-9What is not working for the Company
INTEREST(HY)

At CAD 27 MM has Grown at 50.47%

OPERATING PROFIT MARGIN(Q)

Lowest at 26.33 %

PRE-TAX PROFIT(Q)

Lowest at CAD 79.41 MM

Here's what is working for Topicus.com, Inc.

Operating Cash Flow
Highest at CAD 736.69 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 109.98 MM has Grown at 84.32%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv
Highest at CAD 1,057.51 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at 43.89 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by -1.32% (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 93.29 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 Topicus.com, Inc.

Interest
At CAD 27 MM has Grown at 50.47%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin
Lowest at 26.33 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CAD 79.41 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

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