As a supply chain software company, obviously it witnessed a significant boost in revenue and popularity during the pandemic.
It's got a strong balance sheet, is debt free, growing the dividend at a solid pace and should have continued tailwinds into the future.
One thing that's an added bonus is the fact the company is Canadian, but most of its revenue is generated globally. Around 66% comes from the US and 14% from Europe. Along with this, a huge chunk (40%~) of the company's recurring revenue comes from the healthcare segment. Spending is pretty sticky in that area.
Overall, I like the company. However one of the difficulties I have right now is paying the price it's currently trading at. Great businesses exist all the time that I personally never end up buying just because I feel they're a little too pricey. Tecsys is certainly one of them.
Growth coming out of the pandemic is already slowing, so there is a chance that this one consolidates for a while at these price ranges. We've seen a large recovery in small cap stocks since the latter part of 2022, but Tecsys hasn't really been a part of that recovery because for the most part, it's been fully valued IMO.
One to watch for sure, but I think it's a tad too expensive for my taste.