Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0799
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2639
    +0.0017 (+0.14%)
     
  • USD/JPY

    151.2390
    -0.1330 (-0.09%)
     
  • Bitcoin USD

    70,171.16
    -1,264.97 (-1.77%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Has Tecsys Inc (TSE:TCS) Improved Earnings Growth In Recent Times?

Investors with a long-term horizong may find it valuable to assess Tecsys Inc’s (TSX:TCS) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Tecsys is currently performing. View our latest analysis for Tecsys

How Well Did TCS Perform?

For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This enables me to examine many different companies on a similar basis, using new information. For Tecsys, its most recent trailing-twelve-month earnings is CA$6.92M, which, relative to the previous year’s figure, has climbed up by 37.17%. Since these values may be relatively nearsighted, I have created an annualized five-year value for Tecsys’s net income, which stands at CA$2.61M This suggests that, on average, Tecsys has been able to gradually improve its bottom line over the last couple of years as well.

TSX:TCS Income Statement Mar 17th 18
TSX:TCS Income Statement Mar 17th 18

What’s the driver of this growth? Let’s take a look at whether it is only a result of industry tailwinds, or if Tecsys has experienced some company-specific growth. Over the past few years, Tecsys expanded its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Inspecting growth from a sector-level, the Canadian software industry has been growing its average earnings by double-digit 11.98% over the prior twelve months, and 22.64% over the previous five years. This shows that whatever tailwind the industry is enjoying, Tecsys is able to leverage this to its advantage.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Tecsys gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Tecsys to get a more holistic view of the stock by looking at:

  • 1. Future Outlook: What are well-informed industry analysts predicting for TCS’s future growth? Take a look at our free research report of analyst consensus for TCS’s outlook.

  • 2. Financial Health: Is TCS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  • 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 January 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement