Topicus.com, Inc. () 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

The Descartes Systems Group, Inc.

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Kinaxis, Inc.

Enghouse Systems Ltd.

Constellation Software, Inc.

Open Text Corp.

Topicus.com, Inc.

Lightspeed Commerce, Inc.

Dye & Durham Ltd.

Why is Topicus.com, Inc. ?

With ROE of 36.68%, it has a very expensive valuation with a 10.78 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 -28.41%, its profits have risen by 25.7% ; the PEG ratio of the company is 1.2

Below par performance in long term as well as near term

Along with generating -28.41% 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

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 Software Products)

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

Is Topicus.com, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Topicus.com, Inc.

-27.69%

-0.32

40.10%

S&P/TSX 60

23.72%

1.55

15.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.74%

EBIT Growth (5y)

22.39%

EBIT to Interest (avg)

6.88

Debt to EBITDA (avg)

4.12

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.72

Tax Ratio

17.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

40.23%

ROE (avg)

46.19%

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

10.78

EV to EBIT

23.94

EV to EBITDA

12.79

EV to Capital Employed

6.33

EV to Sales

3.61

PEG Ratio

1.16

Dividend Yield

ROCE (Latest)

26.42%

ROE (Latest)

36.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 580.92 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.52 times

NET SALES(Q)

Highest at CAD 624.29 MM

OPERATING PROFIT(Q)

Highest at CAD 183.17 MM

NET PROFIT(Q)

Highest at CAD 133.33 MM

-16What is not working for the Company

ROCE(HY)

Lowest at 0.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,240.39

RAW MATERIAL COST(Y)

Grown by 7.96% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 74.13 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 162.83 times

INTEREST(Q)

Highest at CAD 14.77 MM

EPS(Q)

Lowest at CAD -1.51

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

Net Profit

At CAD 133.33 MM has Grown at 281.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 580.92 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 Sales

Highest at CAD 624.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 183.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Net Profit

Highest at CAD 133.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 7.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at CAD 87.42 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 14.77 MM has Grown at 55.97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 1,240.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CAD 14.77 MM

in the last five periods and Increased by 55.97% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

EPS

Lowest at CAD -1.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 74.13 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 162.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.96% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales