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

Open Text Corp.

Kinaxis, Inc.

The Descartes Systems Group, Inc.

BlackBerry Ltd.

Constellation Software, Inc.

Enghouse Systems Ltd.

Topicus.com, Inc.

Lumine Group, Inc.

Dye & Durham Ltd.

Lightspeed Commerce, Inc.

Docebo, Inc.

Why is Topicus.com, Inc. ?

High Management Efficiency with a high ROCE of 40.23%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.03 times

Healthy long term growth as Net Sales has grown by an annual rate of 26.74% and Operating profit at 22.39%

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)

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 -39.64%, its profits have risen by 25.7% ; the PEG ratio of the company is 1.2

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -39.64% 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 hold?

Overall Portfolio exposure to Topicus.com, Inc. should be less than 10%
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.

-40.3%

-0.16

41.63%

S&P/TSX 60

29.6%

2.24

12.72%

Quality

Management Risk

Growth

Capital Structure

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)

6.88

Debt to EBITDA (avg)

4.12

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.70

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

10.66

EV to EBIT

22.14

EV to EBITDA

12.00

EV to Capital Employed

8.48

EV to Sales

3.44

PEG Ratio

0.76

Dividend Yield

ROCE (Latest)

38.27%

ROE (Latest)

39.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

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

CASH AND EQV(HY)

Highest at CAD 1,058.76 MM

-8What is not working for the Company

INTEREST(HY)

At CAD 33.91 MM has Grown at 94.43%

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

Net Profit

At CAD 62.17 MM has Grown at 243.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 668.48 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)

Cash and Eqv

Highest at CAD 1,058.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -3.3% (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 89.99 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 33.91 MM has Grown at 94.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)