# Tecsys Inc. (TCS.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$29.20, market value C$421 million.

## Valuation
- **P/E (trailing): 108.1×** (5-yr avg 164.8×, 3-yr avg 187.9×). Tecsys Inc. trades at 108.1× trailing earnings, well below its own five-year average of 164.8×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 44.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.2×**. Each dollar of revenue is priced at 2.2×.
- **Price / book: 6.8×**. The shares trade at 6.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 31.7×**. Enterprise value is 31.7× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.5%** (5-yr avg 1.3%). Free cash flow equals 2.5% of the market value, above its five-year average of 1.3%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 0.9%**. The inverse of the P/E: 0.9% of the price is earned each year.

## Profitability
- **Gross margin: 51.6%**. Tecsys Inc. keeps 51.6% of revenue after the direct cost of what it sells.
- **Operating margin: 3.2%**. 3.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.1%**. 2.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.5%**. 6.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.8%**. Return on all capital, debt included, is 10.8%.
- **Return on assets: 2.8%**. Each dollar of assets produces 2.8% of profit.

## Growth
- **Revenue growth (1 yr): 9.5%** (3-yr 8.2%/yr, 5-yr 9.4%/yr). Revenue grew 9.5% over the last year, against 9.4% a year compounded over five years.
- **EPS growth (1 yr): -10.0%** (3-yr 24.5%/yr, 5-yr -11.2%/yr). Earnings per share fell 10.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 18.3%/yr**. Free cash flow has compounded at 18.3% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.08**. Debt is 0.08 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Tecsys Inc. holds more cash than debt.
- **Interest coverage: 43.6×**. Operating profit covers interest 43.6× over, a safe margin.
- **Current ratio: 1.12** (quick 1.03). Current assets cover the next year's liabilities 1.12 times.
- **Altman Z-score: 5.45**. A Z-score of 5.45 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.23%** (C$0.35 per share, trailing). Tecsys Inc. yields 1.23%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 128%** (49% of free cash flow). The dividend exceeds earnings (128% payout), though free cash flow still covers it.
- **Consecutive years of increases: 10**. 10 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 6.2%). The dividend has grown 7.1% a year over five years.
- **Shareholder yield: 4.2%**. Dividends plus net buybacks return 4.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (6 analysts). 6 analysts cover Tecsys Inc.; the consensus is buy, with an average price target of C$38.92 (+33% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -16.4%** (YTD -4.2%, 3-mo -18.2%). The shares are down 16.4% over twelve months including dividends.
- **From 52-week high: -23.2%** (29.7% above the low). Trading 23% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 32**. An RSI of 32 is neutral.
- **Beta (1 yr): 0.64** (volatility 39%). Beta of 0.64 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.