Is Tecsys a good short term buy?
 | By Rifka Kats | Macroaxis Story |
In spite of rather weak fundamental drivers, Tecsys exhibited solid returns over the last few months and may actually be approaching a breakup point. The entity almost neglects market trends. Let's try to go over Tecsys potential as a potential position for your current portfolio.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
The firm has accumulated 73.67 K in total debt with debt to equity ratio (D/E) of 0.53, which is about average as compared to similar companies. Tecsys has a current ratio of 1.13, suggesting that it may have difficulties to pay its financial obligations in time and when they become due. Tecsys dividends can provide clues to the current value of the stock. Tecsys Inc one year expected dividend income is about $0.15 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Tecsys income statement, its balance sheet, and the statement of cash flows. Potential Tecsys investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Tecsys investors may use each financial statement separately, they are all related. The changes in Tecsys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tecsys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Tecsys fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Tecsys performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Tecsys shares is the value that is considered the true value of the share. If the intrinsic value of Tecsys is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Tecsys. Please read more on our fundamental analysis page. How important is Tecsys's Liquidity
Tecsys financial leverage refers to using borrowed capital as a funding source to finance Tecsys Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tecsys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Tecsys' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Tecsys' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Tecsys's total debt and its cash.
Another Deeper Perspective
Tecsys makes 3.58 % return on asset. The market capitalization of Tecsys is $259.82 Million. Tecsys Inc maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the the company is less than the current market value, you may not be able generate positive returns on investment in the long run.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Tecsys Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.