Stock Idea…Tecsys Inc
Symbol : TCS
Exchange: TSX
Market Cap : 172.0 Million
Revenue : 68.0 Million
Three Year Revenue Growth : 13.7 %
Investment Type : Small Cap Emerging Growth
Three Year Revenue Growth : 13.7 %
Investment Type : Small Cap Emerging Growth
Price/Earnings : 27.3
Forward P/E : 21.3
Price/Book : 5.7
Price/Sales : 2.4
Price/Cash Flow : 16.8
Price : 13.15
Investment Stem : Mawer New Canada Fund
Cheap Small Caps Screen
Investment Stem : Mawer New Canada Fund
Cheap Small Caps Screen
Tecsys Inc is engaged
in the development, marketing and sale of enterprise-wide supply chain
management software for distribution, warehousing, and transportation
logistics. It also provides related consulting, education and support services.
Tecsys Inc is a Canada-based company engaged in the
development, marketing and sale of enterprise-wide supply chain management
software for distribution, warehousing, transportation logistics and
point-of-use. The Company also provides related consulting, education and
support services. Its Supply Chain Platform with Visual Content is a technology
for optimizing warehouse management operations. It offers various services,
such as project management, customer support, training and technical services.
The Company also offers Supply Chain Modeling And Reference Tools (SMART),
which is a supply chain knowledge product. In addition, the Company offers
business consulting services, including warehousing and inventory management,
transportation and logistics, procurement planning, business intelligence,
accounting and finance, and business process re-engineering. The Company
provides hosting solutions. The Company caters to healthcare systems and
high-volume distributors of discrete goods.
Tecsys' business has two major business lines: Complex Distribution and Health Care.
Tecsys Inc. is a provider of innovative supply chain
management software solutions to streamline operations, reduce costs and
improve customer service for distribution businesses. Its solutions touch
warehouse management, distribution, transport management and purchasing & planning.
Tecsys' business has two major business lines: Complex Distribution and Health Care.
The Complex Distribution segment involves organizations that
use a complex network of warehouses, distribution channels and multiple
products and formats. Management has estimated this total market was worth $3B
in 2014 and is increasing at a CAGR of 10% until 2019 based on Gartner
estimates.
The dreaded metrics from Morningstar…
http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=TCS®ion=CAN&culture=en-CA&ops=clear
The company’s website…
Cash flow positive (and that's free cash flow) with no debt. Pay a dividend as well, that's rare for a company this size. Cash return of a sparkling 5.6 per cent. The Canadian 10 year bond is just over 2 per cent I think. A substantial premium. The stock seems to be a comer.
BNN comments
Robert McWhirter
(A Top Pick July 21/16. Up 8.81%.) They make the lives of hospitals more efficient with some of their supply chain management work. A high recurring revenue. Earnings are expected to double by April 2018, going from $.24-$.51, giving you a 22X PE. They are free cash flow positive. ROE is very good at 24%. Feels this still has further upside.
Robert McWhirter
This is in the hospital supply chain management. It has roughly $120 million market cap. They have 2 new modules, one for in-house pharmacies in hospitals, as well as operating rooms. It keeps track of where all the stuff is. That has doubled the revenue potential per hospital. Their pipeline sales over the last year has increased by more than the factor of 3. Year-over-year sales were up 26%. Year-over-year earnings, free cash flow and EBITDA grew over 32%. Dividend yield of 1.21%.
Colin Fisher
(A Top Pick March 16/16. Up 13.87%.) This is a great management team that has been around for a long time, and own quite a few of the shares. There was some weird selling pressure at the end of last year. He expects to see growth on a continuing basis.
BNN comments
Robert McWhirter
(A Top Pick July 21/16. Up 8.81%.) They make the lives of hospitals more efficient with some of their supply chain management work. A high recurring revenue. Earnings are expected to double by April 2018, going from $.24-$.51, giving you a 22X PE. They are free cash flow positive. ROE is very good at 24%. Feels this still has further upside.
Robert McWhirter
This is in the hospital supply chain management. It has roughly $120 million market cap. They have 2 new modules, one for in-house pharmacies in hospitals, as well as operating rooms. It keeps track of where all the stuff is. That has doubled the revenue potential per hospital. Their pipeline sales over the last year has increased by more than the factor of 3. Year-over-year sales were up 26%. Year-over-year earnings, free cash flow and EBITDA grew over 32%. Dividend yield of 1.21%.
Colin Fisher
(A Top Pick March 16/16. Up 13.87%.) This is a great management team that has been around for a long time, and own quite a few of the shares. There was some weird selling pressure at the end of last year. He expects to see growth on a continuing basis.
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