Investor Insights

This summary was created by AI, based on 13 opinions in the last 12 months.

Topicus.Com Inc. (TOI-X) is a spinoff from Constellation Software with high returns on capital, high margins, and a strong track record of acquisitions. It is trading at a discount compared to CSU and LMN. The company has a good business model, excellent management, and is expected to have a good long-term prospect. However, there are differences in opinion among analysts regarding the stock's price target and whether it is a good buy at its current level.

Consensus
Mixed
Valuation
Undervalued
Similar
Constellation, CSI
SELL
Topicus.Com Inc.

He sold and put proceeds back into CSU, the mother ship. Reasons included CSU still owning part of the spinoff. So when you own CSU, you still own part of TOI and LMN. Plus, analysis became simpler. CSU will probably do further spinoffs.

Now, stock price of CSU is high if you aren't awash in funds. His kids collect bottles and cans for extra money, and they can afford and own TOI shares, but not CSU. They eat their own cooking in the Del Vicario family ;)

Technology
TOP PICK
Topicus.Com Inc.

This was the first Constellation Software spinoff and is essentially the CSU of Europe. It has a high ROC, high margins and just paid a special dividend. It has a great track record of acquisitions. It doesn't get a lot of attention and so is trading at a 20 to 25% discount to CSU and LMN and is the cheapest of the three.     Buy 0  Hold 1  Sell 0

(Analysts’ price target is $121.00)
Technology
DON'T BUY
Topicus.Com Inc.
TOI vs. CSU vs. LMN

He'd prefer CSU over TOI, but you should also look at LMN. LMN has done tremendously well since it was spun off. LMN was a vertical business that catered to agri, financial services, and education.

MSFT has software that goes horizontally across a whole bunch of industries, whereas CSU is more vertical. It's been very steady, even when the market goes into selloff mode. Has 5 operating segments.

TOI is out of Europe, and more on the engineering side.

Technology
BUY
Topicus.Com Inc.

Very good business model. Would not wait for a buyout from Constellation Software - business strong on its own. High returns on capital. Excellent management team. Good business overall for the long term investor. 

Technology
PARTIAL BUY
Topicus.Com Inc.

Still a bit of runway to his price target of $126. Rolled over a bit. Wait for a pullback. You could buy a 1/3 position today around $104, but you can probably get it around $95, and then $90 if you're lucky.

Technology
TOP PICK
Topicus.Com Inc.

Exciting, because it's using the CSU playbook and growing faster. Acquires small software companies based in Europe, with lots of countries and lots of languages. Lots of runway. It's small, so small acquisitions can move the needle. Willing to take on more leverage. 8% organic growth. No dividend.

(Analysts’ price target is $99.00)
Technology
DON'T BUY
Topicus.Com Inc.

He holds shares from the CSU spinoff, but he hasn't bought any more. CSU has a unique business model, and you can't just easily replicate that in the spinoffs. He's more inclined to stay with CSU.

Technology
BUY
Topicus.Com Inc.
CSU vs. TOI vs. LMN.

CSU still owns 61% of Lumina, so they're still driving the bus. Lumina geared towards media side. LMN is supposed to be the mini-Constellation. 

CSU has gone through its price target. LMN is under its price target. So LMN is probably a little cheaper.

He'd invest in all 3. Say you had $100K. He'd put 60% in CSU, and split the rest between TOI and LMN.

Technology
PARTIAL BUY
Topicus.Com Inc.

Lots of runway ahead. However, its primary business lies in Europe where geopolitics have held TOI back. Still, you can buy it here, then add more at $83 and $79.

Technology
BUY
Topicus.Com Inc.

Higher organic growth than Constellation Software. Good company that is able to generate high free cash flow. Would recommend buying and holding for many years. 

Technology
BUY ON WEAKNESS
Topicus.Com Inc.

A trading stock, but will be higher in 10-15 years. He'd enter at $90-95. Constellation was smart to spin this out (they still own about 45%).

Technology
BUY ON WEAKNESS
Topicus.Com Inc.

He follows it. It's pricey. It's had a good run and has passed its price target. It was spun off from Constellation. Why hasn't it transitioned into the TSX? They've done well in the past month by 8%. Buy it at $97 and then the low-$90s.

Technology
PAST TOP PICK
Topicus.Com Inc.
(A Top Pick Mar 11/22, Up 17%)

Very good business with excellent management.
Spinoff from Constellation Software.
High margin business with excellent return on equity.
Good long term prospects for business.
Will continue own shares. 

Technology
HOLD
Topicus.Com Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

Topicus.Com Inc (TOI) whose was up 19.3% in the period, 26.25% YTD, and 7.85 for one year. 
TOI was formed by Constellation Software (CSI) giving off the assets of its Netherlands subsidiary to TOI and then dividing some 39 million of its shares among CSI shareholders. 
TOI is controlled by CSI through its ownership of 1 super-voting share (gives it 50.1% of aggregate voting shares outstanding). 
There is a substantial non-controlling interest in TOI such that net income for equity shareholders amounted to 17.0 euros which was up 41%; free cash flow available to shareholders at 18.6 euros was down 10%. Essentially, TOI is a subsidiary of CSI which is a large and successful software provider. TOI seems to be progressing satisfactorily.
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Technology
HOLD
Topicus.Com Inc.

Listed on the Venture Exchange because when CSU spun it out, wanted to keep it off the radar and didn't want to pay high listing fees of the TSX. He hasn't examined the latest results, probably relatively good. Financials are frustrating, messy. If it can come close to replicating the success of CSU, should do well. Higher organic growth rate than CSU. Note that CSU won't announce any acquisition unless it's more than 100-150M. To find this information, you need to look at the underlying business groups. TOI has been active. This environment is more favourable to both TOI and CSU making acquisitions. Exceptional capital allocation skills. Good for growth part of a portfolio.

Technology
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Topicus.Com Inc.(TOI-X) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 10

Stockchase rating for Topicus.Com 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.

Topicus.Com Inc.(TOI-X) Frequently Asked Questions

What is Topicus.Com Inc. stock symbol?

Topicus.Com Inc. is a Canadian stock, trading under the symbol TOI-X on the TSX Venture Exchange (TOI-CV). It is usually referred to as TSXV:TOI or TOI-X

Is Topicus.Com Inc. a buy or a sell?

In the last year, 10 stock analysts published opinions about TOI-X. 7 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Topicus.Com Inc..

Is Topicus.Com Inc. a good investment or a top pick?

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

Why is Topicus.Com 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 Topicus.Com Inc. worth watching?

10 stock analysts on Stockchase covered Topicus.Com Inc. In the last year. It is a trending stock that is worth watching.

What is Topicus.Com Inc. stock price?

On 2024-06-24, Topicus.Com Inc. (TOI-X) stock closed at a price of $111.6.