TSS, Inc. (TSSI) stock analysis

P/E below its 5-year median

TSS's P/E of 10.4 is below its own 5-year median of 45.4.

P/E below the industry

TSS's P/E of 10.4 is below the Management and Public Relations Services median of 25.4.

EV/EBITDA below its 5-year median

TSS's EV/EBITDA of 12.6 is below its 5-year median of 35.4.

P/B below the industry

TSS's price-to-book of 2.06 is below the Management and Public Relations Services median of 2.11.

Trading below fair value

The share price of $6.03 is below our fair value estimate of $14.94.

Margin of safety over 20%

The price is 59.6% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 100% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 249% over the last twelve months, against a 5-year average of 186% a year.

Growing slower than the industry

Revenue grew -14.2% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance issued

The latest outlook (2026 Adjusted EBITDA, Nov 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 18.3% over the last twelve months, against 12.0% a year earlier.

Return on equity over 15%

Return on equity was 23.3% over the last twelve months and averaged 19.8% over five years.

Return on capital over 10%

Return on invested capital was 33.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

TSS's return on equity of 23.3% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 186% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 8.4% over the last twelve months, against a 5-year average of 1.1%.

Net margin above the industry

TSS's net margin of 8.4% is above the Management and Public Relations Services median of 0.2%.

Low debt

Debt is 18.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 70.2% five years ago to 18.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 40.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.79 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.67; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

TSS has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.