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Most Anticipated Earnings: UNC-T, DAN-X and more Canadian Companies Reporting Earnings this Week (Nov 27-Dec 01)Earning Reports to Watch (Nov 26-30)This summary was created by AI, based on 1 opinions in the last 12 months.
Tecsys Inc, based in Montreal, is a leading provider of supply chain solutions to healthcare and auto parts industries. Despite a drop in stock performance in 2022, the company has been steadily increasing its revenues, with high-margin recurring SAAS accounting for a significant portion. Tecsys dominates the US healthcare market and is profitable, with a focus on organic growth. Analysts believe it is currently undervalued compared to its peers, with a price target of $46.40.
A great small-cap, a compounder, enjoying booming business in supply chain for hospitals. Its in the best space for the last 15 years. Growth trajectory will continue for years. Buy pullbacks.
Really likes the company and management, one of his biggest positions. Valuable technology franchise. De facto leaders in US for hospital supply chain management. All small- to mid-caps have been struggling for years. Lots of M&A, more to come.
Record results, this will continue with the backlog it has. Excellent, aggressive buying opportunity. No doubt in his mind that TCS will be snapped up down the road for significantly higher than trading today.
Based in Montreal, they sell supply-chain solutions to healthcare. Also in auto parts. They provide end-to-end solutions. They sold off hard in 2022, despite doubling revenues in the past 4 years, including growing high-margin recurring SAAS to 60% of total revenues. Profitable and reinvesting in organic growth. They dominate the US healthcare market. Trades at only 2.5x revenue, much lower than peers.
(Analysts’ price target is $46.40) TCS has performed really well in recent quarters due to strong Saas subscription bookings with Annual Recurring Revenue (ARR) up 27% to $75.4M compared to $59.5M in the same period last year, and is now trading at 3.7x times' Price/Sales.
In the 3Q, TCS’s total revenue grew 10% to $38.9M, beating estimates of $37M and EPS was $0.08, beating estimates of $0.07. The balance sheet is strong, with net cash of $27M.
Trailing twelve-month cash flow is still negative due to investment in working capital.
Based on consensus estimates, sales are expected to grow by 7%, while EPS is expected to be around $0.12 in 2023.
The company has been executing really well by growing its Saas subscriptions by more than 30%. It is not risk-free by any means, and its small size adds some risks.
But we would be comfortable adding.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strong key performance indicators. Recent quarterly miss on earnings. SaaS business strong. Backlog burn slower than expected. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS missed expectations though revenues beat expectations. Revenues increased by 12% you. The emphasis for companies on supply chain management will be a tailwind for them. They will continue to grow top line and if they benefit from FX then the company can perform quite well. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenu growth has accelerated recently. While the company is expensive on a price to earnings basis, it is still cheaper than most tech stocks on a price to sales basis. Unlock Premium - Try 5i Free
(A Top Pick July 21/16. Up 8.81%.) They make the lives of hospitals more efficient with some of their supply chain management work. A high recurring revenue. Earnings are expected to double by April 2018, going from $.24-$.51, giving you a 22X PE. They are free cash flow positive. ROE is very good at 24%. Feels this still has further upside.
Tecsys Inc is a Canadian stock, trading under the symbol TCS-T on the Toronto Stock Exchange (TCS-CT). It is usually referred to as TSX:TCS or TCS-T
In the last year, 2 stock analysts published opinions about TCS-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Tecsys Inc.
Tecsys Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Tecsys Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Tecsys Inc In the last year. It is a trending stock that is worth watching.
On 2024-10-11, Tecsys Inc (TCS-T) stock closed at a price of $41.57.
Chart looks excellent - trending upwards. Has categorized as an aggressive investment. Expecting a $60/share price going forward.