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DON'T BUY
Tucows Inc.

Sold because its ROIC returns started to get a bit wonky. In fact in last 3 years, ROIC has been negative. Satellite internet access has eaten the lunch of fibre. Hard to form a moat around its domain business. Wait for ROIC to be in excess of 20% for at least 3 years in a row.

An excellent example of deciding to move on from a position when the returns start to falter or go negative. And if there's no identifiable moat, it's a reason to exit.

computer software / processing
DON'T BUY
Tucows Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

TC is down 28% YTD, bringing market cap to $282M. There are no analysts on the company so no estimates. In Q1 sales rose 8.7% and gross profit rose 30.3%. Most divisions showed growth. Cash is $79M but debt is $456M.  Strong growth and cost containment at Wavelo helped results. But cash flow was negative in 2023. Considering weak momentum and lots of balance sheet risk, we have a hard time getting excited here about 9% growth and negative cash flow. We are not interested. 
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computer software / processing
HOLD
Tucows Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

TC has struggled now for a couple of years. 
Sales growth has slowed, and it saw a loss in 2021 and an even bigger loss in 2022. 
Net debt of $226M is very high vs annualized cash flow. It misses earnings estimate about half the time. 
Insiders own 9% and four entities own a combined 50% more. It is buying back stock. 
Sales fell in the recent quarter, so it is not even keeping pace with inflation right now. 
Stock momentum is also not particularly great. 
We think buyers can wait here.  
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computer software / processing
PAST TOP PICK
Tucows Inc.
(A Top Pick Jul 29/20, Up 17%) #2 in the domain business. A cash cow. Steady and predictable. Also have a mobile business and a fibre business. In this environment, expects them to have many more installations and business should boom. Top management. Would buy at these levels.
computer software / processing
PAST TOP PICK
Tucows Inc.

(A Top Pick Sep 23/19, Up 37%) A great CEO who has driven shareholder value, like getting rid of their mobile business which was stagnating in terms of growth. They sold their subscriber base to Dish, and generated revenue by selling back-end services to Dish, which was smart.

computer software / processing
TOP PICK
Tucows Inc.
Domain name registration is the bulk of their revenue. They compete with GoDaddy. The other businesses are also growing organically. The fibre business solution side of the business is growing, especially with work from home and the need to connect. He expects acceleration of deployment that could add to the valuation.
computer software / processing
BUY
Tucows Inc.
A definite lid at around $85 and recently broke through. From a technical perspective that is very bullish. The chart looks pretty good now.
computer software / processing
PAST TOP PICK
Tucows Inc.

(A Top Pick April 26/16. Up 165%.) Internet domain names was viewed as a very flat, dull business. He felt this was under the radar screen and not a lot of attention being paid to it. It is now trading 19X this year’s EBITDA, so it has gotten a little ahead of itself, and may be a little expensive.

computer software / processing
HOLD
Tucows Inc.

They are the number two domain marketing company. They are on fire. US investors have fallen in love with it. He does not see how it can keep going up at the same rate.

computer software / processing
TOP PICK
Tucows Inc.

Only 2 analysts cover this. A Toronto-based telecom company that operates entirely outside of Canada. They are a mobile virtual network operator (MVNO). They cut deals with Verizon (VZ-N) or T Mobile to buy rates from them, brand it under their own name, resell it, and have their own customer service. They really focus on customer service. Their value proposition is about half of what the incumbents charge in the US. Because they are using someone else’s infrastructure, it is a capital efficient business with about a 29% ROE. Management has been buying back a lot of shares.

computer software / processing
TOP PICK
Tucows Inc.

This has 2 businesses. Domain registrations and reselling of mobile phone services. In the mobile phone selling, they specialize in doing customer service themselves. As an offshoot of that, they have launched a 3rd business, high-speed Internet to non-urban locations in the US. Trading at a reasonable valuation with a growth profile and generates a lot of cash flow. Bought back over 50% of their shares since 2007.

computer software / processing
BUY
Tucows Inc.

This is the GoDaddy.com of Canada. Every year they keep buying back more and more stock because there is so much cash flow. They are now trying to get into the telecom through the Internet. The company is extremely excited about the growth in that business. The Internet domain is the cash cow (the 1st cow) and the 2nd cow will be Ting (?). That one is not as profitable, but the profitability is growing rapidly. Has a 31% ROE.

computer software / processing
DON'T BUY
Tucows Inc.
Just IPO'd a couple of months ago. Analysts have not yet put out reports. An interesting business model and feels they are going to be able to Blog the latest portion of their business but so far hasn't gotten traction.
computer software / processing
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Tucows Inc.(TC-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 2

Stockchase rating for Tucows Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Tucows Inc.(TC-T) Frequently Asked Questions

What is Tucows Inc. stock symbol?

Tucows Inc. is a Canadian stock, trading under the symbol TC-T on the Toronto Stock Exchange (TC-CT). It is usually referred to as TSX:TC or TC-T

Is Tucows Inc. a buy or a sell?

In the last year, 2 stock analysts published opinions about TC-T. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Tucows Inc..

Is Tucows Inc. a good investment or a top pick?

Tucows Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Tucows Inc..

Why is Tucows Inc. stock dropping?

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.

Is Tucows Inc. worth watching?

2 stock analysts on Stockchase covered Tucows Inc. In the last year. It is a trending stock that is worth watching.

What is Tucows Inc. stock price?

On 2024-06-21, Tucows Inc. (TC-T) stock closed at a price of $26.3.