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TSS Inc (TSSI)
NASDAQ:TSSI
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TSS
(NASDAQ:TSSI)
69Neutral
TSS (TSSI) vs. S&P 500 (SPY)
Market Cap
$190.47M
Dividend YieldN/A
Average Volume (3M)837.97K
Price to Earnings (P/E)31.6
Beta (1Y)2.63
Revenue Growth172.33%
EPS Growth8237.50%
CountryUS
Employees161
SectorTechnology
Sector Strength66
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding25,028,734
10 Day Avg. Volume654,807
30 Day Avg. Volume837,969
Financial Highlights & Ratios
PEG Ratio0.00384
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.49
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit25.77
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TSS Business Overview & Revenue Model
Company DescriptionTSS, Inc. provides services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013. TSS, Inc. was incorporated in 2004 and is headquartered in Round Rock, Texas.
How the Company Makes Moneynull
TSS Financial Statement Overview
Summary
TSS has demonstrated strong revenue growth and marked improvements in profitability and cash flow generation, positioning it well within the Information Technology Services industry. However, the high leverage reflected in the balance sheet poses potential risks that should be carefully managed to maintain financial stability.Income Statement
TSS has shown a strong revenue growth over the years with the latest year reporting a nearly threefold increase in revenue from the previous year. The gross profit margin is healthy at about 15.1%, indicating efficient cost management. Net profit margin improved significantly to 4.0% from a low of 0.1%, showcasing enhanced profitability. EBIT and EBITDA margins have also improved, reflecting better operational efficiency.―
Balance Sheet
The debt-to-equity ratio is high, indicating significant leverage, which could pose risks if not managed. However, the return on equity is strong at 83.7%, suggesting effective use of equity for generating income. The equity ratio is low, reflecting a reliance on debt financing, which could be a concern if cash flows were to weaken.65
Cash Flow
The free cash flow has turned positive, showing substantial improvement from previous years. The operating cash flow to net income ratio is robust, suggesting good cash generation relative to reported income. The free cash flow to net income ratio is also favorable, indicating efficient cash utilization despite the past fluctuations in free cash flow.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 54.40M | 30.64M | 27.41M | 45.06M | 32.78M | Gross Profit |
| 11.00M | 8.98M | 6.36M | 6.80M | 6.59M | EBIT |
| 1.75M | 914.00K | -831.00K | -400.00K | 480.00K | EBITDA |
| 2.07M | 1.30M | -266.00K | 1.02M | 850.00K | Net Income Common Stockholders |
| 74.00K | -73.00K | -1.30M | 79.00K | 126.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.83M | 20.40M | 7.99M | 19.01M | 8.68M | Total Assets |
| 25.60M | 31.41M | 19.28M | 23.81M | 17.57M | Total Debt |
| 4.32M | 4.78M | 7.61M | 3.19M | 3.63M | Net Debt |
| -7.51M | -15.62M | -387.00K | -15.82M | -5.05M | Total Liabilities |
| 22.05M | 28.47M | 17.08M | 20.63M | 14.70M | Stockholders Equity |
| 3.55M | 2.93M | 2.20M | 3.18M | 2.87M |
| Cash Flow | Free Cash Flow | |||
| -8.53M | 14.18M | -10.52M | 9.60M | 2.42M | Operating Cash Flow |
| -8.27M | 14.71M | -10.45M | 10.00M | 3.02M | Investing Cash Flow |
| -257.00K | -536.00K | -64.00K | -396.00K | -419.00K | Financing Cash Flow |
| -40.00K | -1.77M | -504.00K | 733.00K | -96.00K |
TSS Technical Analysis
Positive
7.61
Price Trends
8.54
Negative
10.52
Negative
8.22
Negative
Market Momentum
-0.35
Negative
48.98
Neutral
52.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSSI, the sentiment is Positive. The current price of 7.61 is above the 20-day moving average (MA) of 7.14, below the 50-day MA of 8.54, and below the 200-day MA of 8.22, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSSI.
TSS Risk Analysis
TSS disclosed 23 risk factors in its most recent earnings report. TSS reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TSS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $190.47M | 31.63 | 111.84% | ― | 172.33% | 8237.50% | |
61 Neutral | $188.20M | 68.78 | 2.86% | 4.62% | -14.93% | -54.76% | |
60 Neutral | $10.94B | 10.48 | -7.04% | 2.99% | 7.55% | -12.20% | |
57 Neutral | $321.93M | ― | 192.24% | ― | -1.72% | 82.15% | |
54 Neutral | $167.87M | 42,475.00 | 0.17% | 0.71% | -9.99% | -97.85% | |
49 Neutral | $187.39M | ― | -75.62% | 1.53% | -10.32% | -3860.81% | |
44 Neutral | $206.64M | ― | -36.71% | ― | -25.52% | -46.44% |
* Technology Sector Average
Performance Comparison
TSSI
TSS
7.61
6.71
745.56%
III
Information Services Group
3.90
0.71
22.26%
TTEC
TTEC Holdings
3.92
-3.97
-50.32%
UIS
Unisys
4.53
-0.85
-15.80%
CSPI
CSP
16.99
3.84
29.20%
TLS
Telos
2.76
-0.93
-25.20%
TSS Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q4-2024)
| % Change Since: -10.58%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant growth in revenue, profitability, and strategic expansions, despite some increases in costs impacting net income.Q4-2024 Updates
Positive Updates
Exceptional Year for TSS
TSS achieved organic revenue growth of 172% for the full year 2024, with diluted earnings per share increasing from breakeven in 2023 to $0.24.
Robust Growth in Procurement Services
The Procurement Services segment saw revenue growth of 205%, reaching $117.5 million compared to $36.5 million in 2023.
Expansion of Facilities and Capabilities
TSS signed a multiyear lease for a new 213,000 square foot facility, increasing operating space by over 100% to support AI-driven demand.
Record Q4 Financial Performance
Q4 revenue reached $50 million, a 105% increase year-over-year, with a 300% increase in diluted earnings per share to $0.08.
Strong Cash Flow and Profitability
For 2024, TSS generated positive cash flow from operations of over $15 million and improved net income to $6 million from $74,000 in 2023.
Negative Updates
High SG&A Expenses
SG&A expenses increased to $4.2 million in Q4 2024, up from $2.5 million in the year-ago quarter, due to investments in capacity and processes.
Interest Expenses Impacting Net Income
Net interest expense for Q4 2024 was $533,000, impacting net income, primarily due to interest tied to factoring receivables.
Company Guidance
In the fourth quarter of 2024, TSS, Inc. demonstrated strong financial performance driven by significant growth across all segments. The company delivered a 172% increase in organic revenue for the full year, reaching $148.1 million, compared to $54.4 million in the previous year. Diluted earnings per share surged from breakeven in 2023 to $0.24 in 2024, with a positive cash flow from operations exceeding $15 million. The procurement services segment saw a remarkable revenue growth of 205%, totaling $117.5 million. Facilities management, representing 5% of total revenue, grew by 13%, maintaining high gross margins above 50%. The integration services business, including AI racks, experienced a 157% revenue increase to $22.6 million. The company also reported a 105% year-over-year increase in Q4 revenue to $50 million, with diluted EPS for the quarter growing by 300% to $0.08. TSS's improved visibility into future orders and strategic initiatives, like the expansion into a new 213,000 square foot facility, positions it well for continued success in 2025, with anticipated adjusted EBITDA growth of at least 50% over 2024.TSS Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TSS Appoints Michael Fahy, Eyes Global Growth and AI Leadership
Positive
Oct 8, 2024
Michael Fahy has joined TSS, Inc. as an independent director, bringing extensive leadership experience from Neovia Logistics and DB Schenker Americas. Known for driving digital transformation and revenue growth, Fahy’s expertise is expected to significantly contribute to TSS’s growth strategy, particularly in AI and high-performance computing infrastructure. His appointment is seen as a strategic move to leverage his global insights and operational skills to enhance TSS’s capabilities and market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.