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TECSYS Inc. J
(TSX:TCS)
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Rating:72Outperform
Price Target:
C$43.00
▲(41.26% Upside)
Action:Upgraded
Date:09/12/26
The score is primarily supported by strong financial quality (low leverage and sharply improved TTM cash flow) and a very constructive earnings call with raised FY2027 guidance and record bookings. These positives are partially offset by weak-to-mixed technical momentum (below key moving averages with negative MACD) and a demanding valuation (P/E ~70) despite a modest dividend yield.
Positive Factors
SaaS growth and raised guidance
Accelerating SaaS growth and higher fiscal guidance indicate stronger recurring demand and improving visibility. A larger subscription base can compound revenue over time, while raised targets suggest management sees sustained customer adoption across both new accounts and expansions.
Negative Factors
Thin and variable net profitability
Although profitability is improving, the modest and historically variable net margin leaves limited room for execution mistakes or slower growth. Sustaining attractive earnings conversion will depend on continued operating leverage, disciplined investment, and successful scaling of the SaaS model.
Read all positive and negative factors
Positive Factors
Negative Factors
SaaS growth and raised guidance
Accelerating SaaS growth and higher fiscal guidance indicate stronger recurring demand and improving visibility. A larger subscription base can compound revenue over time, while raised targets suggest management sees sustained customer adoption across both new accounts and expansions.
Read all positive factors
TECSYS Inc. J (TCS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$557.64M
Dividend Yield0.93%
Average Volume (3M)11.03K
Price to Earnings (P/E)89.0
Beta (1Y)0.45
Revenue Growth10.33%
EPS Growth46.04%
CountryCA
Employees655
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.43
Shares Outstanding14,420,529
10 Day Avg. Volume10,158
30 Day Avg. Volume11,026
Financial Highlights & Ratios
PEG Ratio-13.29
Price to Book (P/B)8.48
Price to Sales (P/S)2.73
P/FCF Ratio53.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$38.63Price Target Upside26.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.73
Revenue Forecast (FY)C$206.20M
TECSYS Inc. J Business Overview & Revenue Model
Company Description
Founded in 1983 and headquartered in Montreal, Canada, Tecsys Inc. specializes in the development, marketing, and sale of extensive supply chain management software along with complementary services. The company's operations span across Canada, th...
How the Company Makes Money
TECSYS primarily makes money by selling and supporting its supply chain execution software and related services. Key revenue streams generally include: (1) Software revenue, earned through licensing or subscription arrangements for its platform an...
TECSYS Inc. J Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive, led by record first-quarter SaaS bookings, accelerating Elite SaaS growth, significant profit and EBITDA gains, strong pipeline activity, and raised fiscal 2027 guidance across all key metrics. The main challenges were lighter professional services bookings, seasonal softness in new-account bookings, declining legacy migration and non-core ARR contributions, and the timing of customer contracting. Management remained confident in demand, pipeline conversion, FedRAMP progress, TecsysIQ adoption, and the outlook for the year.Positive Updates
Exceptional Quarter with Record Bookings and Revenue
Tecsys described Q1 fiscal 2027 as one of the strongest quarters in its history, with record SaaS bookings for a first quarter, the second-highest bookings quarter in company history, record total revenue, and record Adjusted EBITDA.
Negative Updates
Lighter Professional Services Bookings and Backlog
Professional services bookings were lighter in Q1, which brought the professional services backlog down somewhat. As a result, management expects professional services revenue to tick down slightly sequentially in Q2.
Read all updates
Q1-2027 Updates
Positive
Negative
Exceptional Quarter with Record Bookings and Revenue
Tecsys described Q1 fiscal 2027 as one of the strongest quarters in its history, with record SaaS bookings for a first quarter, the second-highest bookings quarter in company history, record total revenue, and record Adjusted EBITDA.
Read all positive updates
Company Guidance
For fiscal 2027, Tecsys raised guidance to Elite SaaS revenue growth of 21%-23%, up from 18%-20% in previous guidance; total SaaS revenue growth of 16%-18%, up from 13%-15% previous guidance; total revenue growth of 5%-8%, up from previous guidance of 2%-4%; and Adjusted EBITDA margin of 11%-14%, up from 11%-13% previous guidance. The company expects PS revenue to tick down slightly on a sequential basis in Q2, is not really expecting growth in PS overall, and said PS is “not going to move that much”; it also expects an increase in investment in the quarters ahead this fiscal, with investment “quite measured.” Tecsys said it has line of sight on 70% SaaS gross margins and is still holding its objectives on that number for the short term, while remaining confident in its initial objectives on where it wanted to land ARR at the end of this year.TECSYS Inc. J Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 196.51M | 193.14M | 176.45M | 171.24M | 152.42M | 137.20M |
| Gross Profit | 101.18M | 99.55M | 85.29M | 78.39M | 66.81M | 60.31M |
| EBITDA | 14.00M | 12.45M | 11.06M | 6.21M | 7.99M | 10.11M |
| Net Income | 6.37M | 4.04M | 4.46M | 1.85M | 2.09M | 4.48M |
Balance Sheet | ||||||
| Total Assets | 140.64M | 143.01M | 140.41M | 128.05M | 126.92M | 125.84M |
| Cash, Cash Equivalents and Short-Term Investments | 34.99M | 31.21M | 39.29M | 35.57M | 37.07M | 43.24M |
| Total Debt | 5.14M | 5.29M | 1.32M | 2.11M | 2.91M | 14.24M |
| Total Liabilities | 78.94M | 80.73M | 69.15M | 59.68M | 56.48M | 57.16M |
| Stockholders Equity | 61.70M | 62.28M | 71.26M | 68.37M | 70.44M | 68.68M |
Cash Flow | ||||||
| Free Cash Flow | 23.16M | 9.88M | 11.16M | 3.24M | 5.97M | 2.88M |
| Operating Cash Flow | 25.98M | 16.25M | 13.91M | 4.86M | 7.76M | 4.94M |
| Investing Cash Flow | -3.88M | -6.27M | 2.89M | -1.47M | -1.11M | -2.38M |
| Financing Cash Flow | -18.45M | -18.43M | -8.07M | -5.76M | -8.42M | -5.31M |
TECSYS Inc. J Technical Analysis
Positive
30.44
Price Trends
34.82
Positive
34.32
Positive
32.14
Positive
Market Momentum
0.76
Positive
61.87
Neutral
93.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCS, the sentiment is Positive. The current price of 30.44 is below the 20-day moving average (MA) of 38.11, below the 50-day MA of 34.82, and below the 200-day MA of 32.14, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 93.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TCS.
TECSYS Inc. J Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$11.02B | 42.06 | 11.69% | ― | 12.43% | 25.58% | |
76 Outperform | C$999.86M | 14.49 | 11.70% | 6.64% | -4.73% | -5.61% | |
72 Outperform | C$557.64M | 89.00 | 9.76% | 0.93% | 10.33% | 46.04% | |
71 Outperform | C$5.24B | 44.03 | 20.88% | ― | 15.99% | 252.03% | |
70 Outperform | C$9.18B | 5.99 | 28.29% | 4.03% | 0.54% | 54.92% | |
69 Neutral | C$1.04B | 24.70 | 113.64% | ― | 11.23% | 65.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TSE:TCS
TECSYS Inc. J
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3.56
10.13%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.