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.
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.
To perform a cash flow analysis of Tecsys, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Tecsys is receiving and how much cash it distributes out in a given period. The Tecsys cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
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.
Volatility analysis of Tecsys indicates possible reversal in August
Jensen alpha is down to 0.72 as of today. As of the 7th of July, Tecsys has the
coefficient of variation of 723.53, and
risk adjusted performance of 0.3009. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Tecsys Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have analyzed and interpolated nineteen
technical drivers for Tecsys Inc, which can be compared to its competition. Please validate
Tecsys Inc information ratio, as well as the
relationship between the
potential upside and
kurtosis to decide if Tecsys is priced more or less accurately, providing market reflects its prevalent price of 16.98 per share. Given that Tecsys Inc has
jensen alpha of 0.718, we advise you to double-check Tecsys Inc's current market performance to make sure the company can sustain itself at a future point.
Our Final Perspective on Tecsys
Although many other companies under software—application industry are still a bit expensive, Tecsys may offer a potential longer-term growth to shareholders. To sum up, as of 7th of July 2020, we believe that at this point, Tecsys is somewhat reliable with
quite high probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
overvalued. Our latest 30 days recommendation on the firm is
Strong Hold. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take up new shares of Tecsys nor exit your existing holdings in the OTC Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Tecsys.
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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
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