Tucows, Inc. (TCX) 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

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MultiPlan Corp.

Why is Tucows, Inc. ?

Weak Long Term Fundamental Strength with a 22.80% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.00
The company has been able to generate a Return on Equity (avg) of 1.13% signifying low profitability per unit of shareholders funds

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.79%, its profits have risen by 15.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.79% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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 Commercial Services & Supplies)

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

Is Tucows, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tucows, Inc.

-10.8%

-0.53

47.74%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.63%

EBIT Growth (5y)

22.80%

EBIT to Interest (avg)

-1.00

Debt to EBITDA (avg)

2.15

Net Debt to Equity (avg)

-5.22

Sales to Capital Employed (avg)

39.65

Tax Ratio

9.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

75.42%

ROCE (avg)

0.02%

ROE (avg)

1.13%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

EV to EBIT

7.63

EV to EBITDA

1.10

EV to Capital Employed

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -3.15 MM

NET SALES(Q)

Highest at USD 98.67 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -7.42% (YoY

PRE-TAX PROFIT(Q)

Highest at USD 0 MM

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

Here's what is working for Tucows, Inc.

Net Sales

Highest at USD 98.67 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 0 MM has Grown at 100%

over average net sales of the previous four periods of USD -7.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Operating Cash Flow

Highest at USD -3.15 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

Highest at USD 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -7.42% (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

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

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD inf MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income