Hey Addison,
So first off - don't worry too much about it being down 50%. I say this because many tech stocks (even more high profile ones) have cratered by just as much. So this is not necessarily a reflection of the company's poor performance, but a reflection of the reset in valuations across the tech sector. Investors are no longer willing to pay high multiples for tech stocks in an environment of rising rates which makes it more expensive for these stocks to grow.
Now, with regards to SYZ in particular, it has struggled, and not just on a macro level. The company used to be a Canadian Dividend Aristocrat but ended up slashing the dividend by ~95% this past fall as it could no longer keep up. The company's payout ratios against earnings and cash flows were on the rise and it simply wasn't growing fast enough to justify paying out a yield north of 8%. Speaking of which, the company has only averaged 1.25% annual revenue growth and negative earnings growth (-8.25%) over the past handful of years. This is not what you want to see out of a tech stock which usually comes with higher growth expectations. The company has a so-so debt profile with a D/E of 0.6 and generated negative free cash flow over the past 12 months.
Unfortunately, while earnings are expected to rebound this year, revenue is still pointing to a YoY drop. The company is trading 3.43 times sales and 24x forward earnings. While it looks reasonably priced here, negative revenue growth estimates is a concern and it doesn't get a little confusing since the company recently changed its financial year so comparables are now tough to make. TBH, it's a concern we've had with Sylogist for a number of years. It never looks particularly cheap and growth rates have always been below the industry average even though it posted strong growth last year. It is an OK company, but not one that I am particularly interested in as performance has been spotty.
Mat
Mat