Sound bite for Twitter is: Dividend Growth Tech. Results of stock price testing is that the stock price could still be reasonable, but be cautious. Debt Ratios are mostly fine. The Dividend Payout Ratios (DPR) are too high. The current dividend yield is low with dividend growth low. See my spreadsheet on TECSYS Inc.
Is it a good company at a reasonable price? I have done well on this stock, but I bought it with fooling around money because it is a small Tech stock. I do not believe in Tech stocks for the long term. I would be cautious with this stock, but it is off its recent high. It is testing as reasonable, but above the median.
I own this stock of TECSYS Inc (TSX-TCS, OTC-TCYSF). I came across this stock when I was looking for a dividend paying small cap stock as a filler stock. This is a small cap dividend paying stock that I like.
When I was updating my spreadsheet, I noticed I have done very well on this stock. I have had it since February 11, 2023 and bought more in January 2024. My total return is 25.42% with 22.98% from capital gains and 2.44% from dividends. I noticed that the Chairman, David Brereton has been selling some shares every year. Note that the financial year for this stock ends April 30 each year, so I am reviewing the fourth quarter for April 30, 2025.
If you had invested in this company in December 2014, for $1,000.00 you would have bought 125 shares at $8.00 per share. In December 2024, after 10 years you would have received $285.63 in dividends. The stock would be worth $5,731.25. Your total return would have been $6,016.88. This would be a total return of 20.33% per year with 19.08% from capital gain and 1.26% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $8.00 | $1,000.00 | 125 | 10 | $285.63 | $5,731.25 | $6,016.88 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (below 1%) at just 0.92%. The 5, 10 and historical median dividend yields are also low at 0.85%, 1.11% and 1.28%. The current dividend growth is low (below 8% per year) at 7.5% per year over the past 5 years. The last dividend increase was in 2025 and it was for 6.3%.
The Dividend Payout Ratios (DPR) are too high. The DPR for 2024 for Earnings per Share (EPS) is far too high at 110% with 5 year coverage at 105%. The DPR for 2024 for Cash Flow per Share (CFPS) is too high at 57% with 5 year coverage at 57%. The DPR for 2024 for Free Cash Flow (FCF) is too high at 55% with 5 year coverage at 57%. There is no agreement on what the FCF is.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 110.00% | 105.15% |
| CFPS | 57.39% | 57.39% |
| FCF | 55.49% | 57.27% |
Debt Ratios are mostly fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2024 is low at 1.32 and 1.32 currently. If you added in Cash Flow after dividends, the ratios are low at 1.32 and currently at 1.32. I prefer the Liquidity Ratios to be at 1.50 or higher. The Debt Ratio for 2024 is good at 2.03 and 2.03 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.97 and 0.97 and currently at 1.97 and 0.97.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.04 | 0.04 |
| Liquidity | 1.32 | 1.32 |
| Liq. + CF | 1.32 | 1.32 |
| Debt Ratio | 2.03 | 2.03 |
| Leverage | 1.97 | 1.97 |
| D/E Ratio | 0.97 | 0.97 |
The Total Return per year is shown below for years of 5 to 26 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 7.49% | 17.48% | 16.49% | 0.99% |
| 2014 | 10 | 13.87% | 20.33% | 19.08% | 1.26% |
| 2009 | 15 | 13.41% | 24.81% | 23.02% | 1.79% |
| 2004 | 20 | 13.22% | 19.87% | 18.65% | 1.22% |
| 1999 | 25 | 7.82% | 7.43% | 0.39% | |
| 1998 | 26 | 11.26% | 10.78% | 0.48% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 108.63, 133.17 and 157.70. The corresponding 10 year ratios are 57.97, 90.92 and 107.52. The corresponding historical ratios are 15.31, 19.63 and 23.96. The current ratio is 79.94 based on a stock price of $37.08 and EPS estimate for 2026 of $0.47. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. The ratios are very high because of low EPS compared to the stock price.
I get a Graham Price of $7.09. The 10-year low, median, and high median Price/Graham Price Ratios are 3.10, 4.61 and 5.31. The current P/GP Ratio is 5.23 based on a stock price of $37.08. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Book Value per Share Ratio of 5.25. The current P/B Ratio is 7.72 based on a stock price of $37.08, Book Value of $71.26M and Book Value per Share of $4.80. The current ratio is 47% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive
I get a 10-year median Price/Cash Flow per Share Ratio of 48.84. The current ratio is 113.31 based on Cash Flow for the last 12 months of $4.386M, Cash Flow per Share of $0.33 and a stock price of $37.08. The current ratio is 132% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 1.28%. The current dividend yield is 0.92% based on dividends of $0.34 and a stock price of $37.08. The current dividend yield is 28% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 1.11%. The current dividend yield is 0.92% based on dividends of $0.34 and a stock price of $37.08. The current dividend yield is 17% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 2.78. The current P/S Ratio is 2.85 based on Revenue estimate for 2026 of $193M, Revenue per Share of $13.03 and a stock price of $37.08. The current ratio is 2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Results of stock price testing is that the stock price could still be reasonable, but be cautious. The 10 year dividend yield test says that the stock price is reasonable but above the median. This is confirmed by the P/S Ratio test. Other tests are either showing the same thing or that the stock price is expensive.
When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (4). The consensus would be a Strong Buy. The 12 month stock price consensus is $48.20 with a high of $50.00 and low of $46.00. The consensus stock price of $48.20 implies a total return of 30.91% with 29.99% from capital gains and 0.92% from dividends based on a current price of $37.08.
There are two entries on Stock Chase for this stock for 2025. The last one lists this stock as a buy, the earlier one says Do Not Buy as this analyst does not like that the company has little in recurring revenue. Amy Legate-Wolfe on Motley Fool says invest in companies that use AI and this is one she likes. Christopher Liew on Motley Fool thinks this is Canadian Tech stock worth investing in. The company put out a Press Release on their fourth quarter ending in March 2025.
Simply Wall Street via Yahoo Finance reviews this stock and its dividends. I agree that it is currently paying out too much. Simply Wall Street has two warnings out on this stock of earnings have declined by 14% per year over past 5 years and significant insider selling over the past 3 months. Earnings are volatile. For insider selling over the past years, the CEO and CFO and one director I follow bought shares in the last year. However, the Chairman, who when I first stated to follow this stock had 30% of the shares in 2005. Over the past 20 years he has been selling some each year and he now owns 6% of the shares of this company.
TECSYS Inc is engaged in the development and sale of enterprise supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and order management. It also provides related consulting, education, and support services. The company serves healthcare systems, services parts, third-party logistics, retail, and general wholesale distribution industries. Geographically, it derives a majority of its revenue from the United States and also has a presence in Canada, Europe, and other regions. Its web site is here TECSYS Inc.
The last stock I wrote about was about was Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more. The next stock I will write about will be Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more on Monday, July 28, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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