Is it a good company at a reasonable price? I still like this company and I am hoping that they will do better in the future. However, it is a small cap and therefore rather risky. You should not put money into this company that you cannot afford to lose. The stock price is testing reasonable at the moment.
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. (I use filler stocks in my TFSA to soak up small extra money left over in the account after my main purchase with my annual deposit into the account each year.) This is a small cap dividend paying stock that I like.
When I was updating my spreadsheet, I noticed the stock price is negative for the last 5 years. The company missed the EPS estimate of $0.47 with an EPS of $0.27. I note that the company also reported an Adjusted Earnings per Share of $0.50. This is the first time they have reported an Adjusted Earnings per Share. Even with the Adjusted Earnings per Share, I noticed that the growth is on 2.04% per year over the past 5 years and this is low. I noticed that they also had restructuring cost for 2026.
They have been increasing their revenue, but EPS has been declining over the past 5 years. Their expenses have been increasing faster than their revenue. This is probably why stock price has gone down.
When I look at insiders, both the CEO and Chairman have significant holdings in this company. Over the past year the CFO bought some more shares. The Chairman, who currently owns 4.5% of the company worth around $27M is selling shares. He has been selling some shares each year since 2021. It is probably wise of him to do so because you do not want all your money and your employments dependent on one company.
If you had invested in this company in December 2015, for $1,002.32 you would have bought 136 shares at $7.37 per share. In December 2025, after 10 years you would have received $344.76 in dividends. The stock would be worth $4,168.40. Your total return would have been $4,512.16. This would be a total return of 17.10% per year with 15.32% from capital gain and 1.78% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $7.37 | $1,002.32 | 136 | 10 | $344.76 | $4,168.40 | $4,513.16 |
However, if you had invested in this company in December 2020, for $1,046.22 you would have bought 21 shares at $49.82 per share. In December 2025, after 5 years you would have received $32.34 in dividends. The stock would be worth $643.65. Your total return would have been $675.99. This would be a total loss of 8.49% per year with 9.23% from capital loss and 0.77% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $49.82 | $1,046.22 | 21 | 5 | $32.34 | $643.65 | $675.99 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2% per year) at 1.05%. The 5, 10 and historical dividend yields are also low at 0.96%, 1.01% and 1.26%. The dividend growth is currently low (below 8% per year) at 7.8% per year over the past 5 years. The last dividend increase occurred in 2025 and it was for 5.9%. The DPR for the 2027 financial year is expected to be much better at 46%.
The Dividend Payout Ratios (DPR) are too high and is expected to be improved next year. The DPR for 2025 for Earnings per Share (EPS) is too high at 130% with 5 year coverage at 136%. The DPR for 2025 for Adjusted Earnings per Share (EPS) is too high at 70% with 5 year coverage at 104%. The DPR for 2025 for Cash Flow per Share (CFPS) is high at 51% with 5 year coverage at 51%. The DPR for 2025 for Free Cash Flow (FCF) is too high at 100% with 5 year coverage at 80%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 129.63% | 135.09% |
| AEPS | 70.00% | 104.76% |
| CFPS | 50.95% | 50.95% |
| FCF | 99.71% | 80.39% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.00 and currently at 0.01. The Liquidity Ratio for 2025 is low at 1.12 and 1.12 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.27 and currently at 1.31. I like to see this ratio at 1.50 or higher. The Debt Ratio for 2025 is good at 1.77 and 1.77 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.30 and 1.30 and currently at 2.30 and 1.30.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.01 |
| Intang/GW | 0.05 | 0.05 |
| Liquidity | 1.12 | 1.12 |
| Liq. + CF | 1.27 | 1.31 |
| Debt Ratio | 1.77 | 1.77 |
| Leverage | 2.30 | 2.30 |
| D/E Ratio | 1.30 | 1.30 |
The Total Return per Year is shown below for years of 5 to 27 to the end of 2025. 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. |
|---|---|---|---|---|---|
| 2020 | 5 | 7.84% | -8.49% | -9.26% | 0.77% |
| 2015 | 10 | 13.35% | 17.10% | 15.32% | 1.78% |
| 2010 | 15 | 13.13% | 23.79% | 21.12% | 2.67% |
| 2005 | 20 | 12.81% | 17.64% | 15.91% | 1.73% |
| 2000 | 25 | 9.57% | 8.83% | 0.74% | |
| 1998 | 27 | 9.41% | 8.73% | 0.68% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 108.63, 133.17 and 163.89. The corresponding 10 year ratios are 78.17, 95.78 and 131.47. The corresponding historical ratios are 15.99, 20.16 and 24.33. The current ratio is 43.76 based on a stock price of $34.13 and EPS estimate for 2027 of $0.78. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. The ratios are very high.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 106.43, 133.17, 157.70. The corresponding 10 year ratios are 58/.361, 90.92 and 108.63. The corresponding historical ratios are 15.99, 20.16 and 24.33. The current ratio is 46.75 based on a stock price of $34.13 and AEPS estimate for 2027 of $0.73. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. The ratios are very high.
I get a Graham Price of $8.42. The 10-year low, median, and high median Price/Graham Price Ratios are 3.25, 4.87 and 5.98. The current P/GP Ratio is 4.05 based on a stock price of $34.13. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. The ratios are very high.
I get a 10-year median Price/Book Value per Share Ratio of 6.32. The current ratio is 7.91 based on a stock price of $34.13, Book Value of $62.3M, Book Value per Share of $4.31. The current ratio is 25% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The ratios are very high.
I get a 10-year median Price/Cash Flow per Share Ratio of 43.74. The current ratio is 25.01 based on a stock price of $34.13, Cash Flow estimate for 2027 of $19.7M and Cash Flow per Share of $1.36. The current ratio is 43% below 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 1.26%. The current dividend yield is 1.05% based on dividends of $0.36 and a stock price of $34.13. The current ratio is 16% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 1.01%. The current dividend yield is 1.05% based on dividends of $0.36 and a stock price of $34.13. The current ratio is 4.7% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10-year median Price/Sales (Revenue) Ratio is 2.78. The current P/S Ratio is 2.46 based on Revenue estimate for 2027 of $200.4M, Revenue per Share of $13.88 and a stock price of $34.13. The current ratio is 11.7% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. The 10 year median dividend yield test says that the stock price is reasonable and below the median. It is confirmed by the P/S Ratio test. The other tests range from cheap to expensive. I wonder about some of the testing because some ratios are really high.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (3), and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $37.50 with a high of $40.00 and low of $28.50. The 12 months stock price consensus of $37.50 implies a total return of 10.93% with 9.87% from capital gains and 1.05% from dividends.
There is a couple of entries on Stock Chase for 2025. There is a top pick and a Do Not Buy. The Do Not Buy says that he prefers companies with recurring revenue. The top pick says they dominate supply chain management software solutions in US hospitals. Amy Legate-Wolfe on Motley Fool says TECSYS is a smaller supply-chain software play with rising SaaS revenue, but it can drop fast if growth disappoints. Aditya Raghunath on Motley Fool says that if you are not investing in companies like TECSYS then you are using your TFSA wrong. The company put out a Press Release about their fourth quarter ending in March 2026.
Simply Wall Street via Yahoo Finance reviews this stock. They like to stock because there is high insider ownership and it is growing its profit. Simply Wall Street has two warnings of significant insider selling over the past 3 months; and large one-off items impacting financial results. They have Adjusted Earnings per Share values as well as Earnings per Share.
TECSYS Inc is engaged in the development, marketing, and sale of enterprise-wide supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and order management. Geographically, it operates in United States, Canda, Europe, Others with majority of revenue deriving from United States. Its web site is here TECSYS Inc.
The last stock I wrote about was about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more. The next stock I will write about will be Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more on Friday, July 24, 2026 around 5 pm. Tomorrow on my other blog I will write about Socialisms Appeal to the Youth.... learn more on Thursday, July 23, 2026 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.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
