# Tucows Inc. (TC.TO) fundamentals

Data as of 2026-11-10. TSX, Canada. Sector: Technology / Software. Price C$18.74, market value C$210 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Tucows Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **EV / EBITDA: 10.6×**. Enterprise value is 10.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -9.7%** (5-yr avg -17.5%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.

## Profitability
- **Gross margin: 24.9%**. Tucows Inc. keeps 24.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -5.4%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -19.4%**. The company reported a net loss over the last twelve months.
- **Return on equity: 46.2%**. 46.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: -4.6%**. Return on all capital, debt included, is -4.6%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -10.7%**. Each dollar of assets produces -10.7% of profit.

## Growth
- **Revenue growth (1 yr): 7.7%** (3-yr 6.7%/yr, 5-yr 4.6%/yr). Revenue grew 7.7% over the last year, against 4.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 31.6%**. Earnings per share rose 31.6%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Net debt / EBITDA: 8.6×**. It would take 8.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: -0.4×**. Operating profit covers interest only -0.4×: fragile.
- **Current ratio: 0.32** (quick 0.31). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: -0.08**. A Z-score of -0.08 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Tucows Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): -31.8%** (YTD -37.1%, 3-mo 8.1%). The shares are down 31.8% over twelve months including dividends.
- **From 52-week high: -46.1%** (56.2% above the low). Trading 46% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 69**. An RSI of 69 is neutral.
- **Beta (1 yr): 0.29** (volatility 88%). Beta of 0.29 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TC.TO · Page: https://foliofundamentals.com/stocks/tc.to

Not investment advice.