Topicus.com (TOI) AI Stock Analysis

• Market Cap: $13.58B
• Dividend Yield: N/A
• Average Volume (3M): 52.10K
• Price to Earnings (P/E): 83.1
• Beta (1Y): 0.84
• Revenue Growth: 20.69%
• EPS Growth: 40.43%
• Country: CA
• Employees: 4,250
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.49
• Shares Outstanding: 83,338,850
• 10 Day Avg. Volume: 52,487
• 30 Day Avg. Volume: 52,099
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 16.51
• Enterprise Value/Gross Profit: 45.15
• Enterprise Value/Ebitda: 55.30
• 1Y Price Target: $214.50
• Price Target Upside: 32.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: C$179.00 ▲(10.53% Upside)

Topicus.com shows strong financial performance with solid profitability and prudent financial management, which is the most significant factor in its score. However, technical indicators suggest a bearish trend, and the high P/E ratio raises concerns about overvaluation. The absence of earnings call data and corporate events limits the analysis, but the company's strong recurring revenue streams provide a stable foundation.

Topicus.com Business Overview & Revenue Model

Company Description

Topicus.com Inc. provides vertical market software and vertical market platforms in Europe. The company acquires, builds, and manages various vertical market software businesses, which offer software solutions that address the particular needs of customers. It serves accountancy, agriculture, associations, automotive, central government, education, facility management, finance, healthcare, hospitality, legal, local government, manufacturing, mobility, real estate, and retail vertical markets. The company was incorporated in 2020 and is headquartered in Toronto, Canada.

How the Company Makes Money

Topicus.com makes money primarily through the sale and licensing of its specialized software products to organizations within its targeted vertical markets. The company's revenue streams include subscription fees for software-as-a-service (SaaS) offerings, one-time license fees for on-premise software solutions, and ongoing maintenance and support contracts. In addition to direct sales, Topicus.com may generate revenue through strategic partnerships and collaborations that expand its market reach and enhance its service offerings. The company focuses on delivering high-value products that enable recurring revenue streams while fostering long-term relationships with its clients.

Topicus.com Financial Statement Overview

Summary

Topicus.com exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects prudent financial management with a balanced debt-to-equity ratio and strong return on equity. Cash flow generation is robust, although recent declines in free cash flow growth should be monitored. Overall, the company is well-positioned in the software infrastructure industry, but attention to slowing revenue growth and free cash flow trends is advised.

Income Statement

Topicus.com has demonstrated consistent revenue growth, with a TTM revenue growth rate of 4.53%. The company maintains healthy profitability margins, including a gross profit margin of 36.54% and an EBIT margin of 16.23%. The net profit margin is stable at 7.34%, indicating effective cost management. However, the revenue growth rate has slowed compared to previous years, which could be a concern for future growth prospects.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.92, indicating a balanced approach to leveraging. The return on equity is strong at 31.13%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. The company has improved its debt management over the years, but the increase in total debt warrants monitoring.

Cash Flow

Operating cash flow is robust, with a TTM operating cash flow to net income ratio of 0.39, indicating strong cash generation relative to net income. Free cash flow growth has declined by 6.73% in the TTM, which could impact future investments and shareholder returns. The free cash flow to net income ratio remains high at 97.82%, showcasing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.29B	1.12B	916.68M	742.54M	493.99M
Gross Profit	513.84M	471.35M	399.63M	325.55M	269.36M	190.79M
EBITDA	419.54M	376.30M	313.11M	251.99M	-2.08B	159.32M
Net Income	107.49M	91.99M	71.75M	87.61M	-2.22B	63.68M
Balance Sheet
Total Assets	2.33B	1.54B	1.44B	1.29B	1.03B	641.14M
Cash, Cash Equivalents and Short-Term Investments	249.25M	206.16M	179.06M	136.77M	75.33M	55.64M
Total Debt	579.94M	351.83M	287.83M	328.88M	226.91M	103.16M
Total Liabilities	1.50B	1.00B	842.67M	827.01M	672.69M	376.46M
Stockholders Equity	503.68M	311.28M	339.18M	266.10M	-705.60M	264.68M
Cash Flow
Free Cash Flow	357.28M	339.34M	238.78M	195.71M	171.04M	149.46M
Operating Cash Flow	367.82M	347.63M	246.56M	203.01M	176.42M	151.87M
Investing Cash Flow	-452.19M	-110.22M	-127.20M	-133.41M	-213.43M	-74.25M
Financing Cash Flow	101.27M	-211.60M	-77.98M	-8.15M	56.69M	-50.02M

Topicus.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOI, the sentiment is Negative. The current price of 161.95 is below the 20-day moving average (MA) of 170.10, below the 50-day MA of 176.20, and above the 200-day MA of 154.89, indicating a neutral trend. The MACD of -3.69 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TOI.

Topicus.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVO	69 Neutral	871.33M	-27.82	-18.58%	―	10.09%	-8.79%
TOI	63 Neutral	$13.58B	83.07	27.12%	―	20.69%	40.43%
STC	60 Neutral	234.64M	-33.64	0.00%	―	-1.46%	40.89%
BB	57 Neutral	3.62B	-56.60	-11.03%	―	-8.84%	70.97%
DND	55 Neutral	586.40M	-3.79	0.00%	0.86%	2.47%	19.37%
TIXT	55 Neutral	1.70B	-3.21	-22.61%	―	5.06%	-638.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Topicus.com Corporate Events

Topicus.com Inc. Reports Strong Revenue Growth Amid Cash Flow Challenges in Q2 2025

Topicus.com Inc. reported a 20% increase in revenue for Q2 2025, reaching €372.0 million, driven by both acquisitions and a 5% organic growth. Despite the revenue growth, the company faced a decline in cash flows from operations and free cash flow available to shareholders, highlighting challenges in cash management and operational efficiency.

The most recent analyst rating on (TSE:TOI) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on Topicus.com stock, see the TSE:TOI Stock Forecast page.

Topicus.com Inc. Schedules Q2 Results Release for August 1

Topicus.com Inc. announced it will release its second quarter results on August 1, 2025, after market close. The results will be available via press release and on the company’s website, as well as the SEDAR website. This announcement is part of the company’s regular financial reporting and may impact stakeholders’ expectations and market positioning.

The most recent analyst rating on (TSE:TOI) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on Topicus.com stock, see the TSE:TOI Stock Forecast page.

Topicus.com Secures €200 Million Schuldschein Loan to Boost Growth

Topicus.com Inc. has successfully completed a €200 million senior unsecured Schuldschein loan through its subsidiary, Topicus.com Coöperatief U.A. The loan, initially launched at €100 million, was doubled due to strong interest from institutional lenders. The funds are intended for general corporate purposes and mergers and acquisitions, enhancing the company’s capital structure and debt maturity profile.

The most recent analyst rating on (TSE:TOI) stock is a Buy with a C$195.00 price target. To see the full list of analyst forecasts on Topicus.com stock, see the TSE:TOI Stock Forecast page.