📊 TSSI Key Takeaways
Is TSS, Inc. (TSSI) a Good Investment?
TSS exhibits a deteriorating operational profile with zero revenue growth and razor-thin operating margins (2.6%), while net income surge (+153% YoY) appears disconnected from fundamentals and likely unsustainable. Despite fortress balance sheet strength ($85.5M cash, 0.18x leverage), the company generates minimal free cash flow ($2.1M, 0.9% margin) and weak interest coverage (1.9x), limiting reinvestment capacity and shareholder returns.
Why Buy TSS, Inc. Stock? TSSI Key Strengths
- Fortress balance sheet with $85.5M cash representing 46% of total assets
- Exceptionally conservative leverage at 0.18x debt-to-equity ratio with manageable debt load
- Healthy liquidity metrics (1.63x current ratio, 1.41x quick ratio) provide operational flexibility
- ROE of 19.7% and ROA of 8.2% demonstrate reasonable capital efficiency
TSSI Stock Risks: TSS, Inc. Investment Risks
- Complete revenue stagnation (0.0% YoY growth) with no visible growth catalysts
- Disconnected earnings growth from revenue growth suggests unsustainable gains or one-time items
- Critically low operating margins (2.6%) and gross margins (13.2% - well below consulting industry norms) indicate structural profitability pressure
- Free cash flow generation severely constrained at $2.1M despite $34.9M operating cash flow due to elevated capex (93.7% of OCF)
- Weak interest coverage (1.9x) limits financial flexibility for leverage or debt service
- High capex relative to cash generation without corresponding revenue growth signals inefficient capital allocation
Key Metrics to Watch
- Revenue growth acceleration - current 0% is untenable long-term
- Operating margin expansion - 2.6% is unsustainably thin for a consulting services firm
- Free cash flow generation and FCF margin - must improve materially beyond 0.9%
- Gross margin sustainability - 13.2% suggests structural cost pressures requiring mitigation
- Capital expenditure efficiency - capex consuming 93.7% of operating cash flow must decline relative to revenue growth
TSS, Inc. (TSSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility.
TSSI Profit Margin, ROE & Profitability Analysis
TSSI vs Services Sector: How TSS, Inc. Compares
How TSS, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TSS, Inc. Stock Overvalued? TSSI Valuation Analysis 2026
Based on fundamental analysis, TSS, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TSS, Inc. Balance Sheet: TSSI Debt, Cash & Liquidity
TSSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TSS, Inc.'s revenue has grown significantly by 445% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 indicates the company is currently unprofitable.
TSSI Revenue Growth, EPS Growth & YoY Performance
TSSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $41.9M | $15.0K | $-0.06 |
| Q2 2025 | $12.2M | $15.0K | $0.06 |
| Q1 2025 | $15.9M | $15.0K | $0.00 |
| Q3 2024 | $8.9M | $15.0K | $-0.01 |
| Q2 2024 | $12.2M | $15.0K | $0.01 |
| Q1 2024 | $6.6M | $15.0K | $0.00 |
| Q3 2023 | $8.1M | $209.0K | $-0.01 |
| Q2 2023 | $6.4M | -$308.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TSS, Inc. Dividends, Buybacks & Capital Allocation
TSSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TSS, Inc. (CIK: 0001320760)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TSSI
What is the AI rating for TSSI?
TSS, Inc. (TSSI) has an AI rating of SELL with 55% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TSSI's key strengths?
Claude: Fortress balance sheet with $85.5M cash representing 46% of total assets. Exceptionally conservative leverage at 0.18x debt-to-equity ratio with manageable debt load.
What are the risks of investing in TSSI?
Claude: Complete revenue stagnation (0.0% YoY growth) with no visible growth catalysts. Disconnected earnings growth from revenue growth suggests unsustainable gains or one-time items.
What is TSSI's revenue and growth?
TSS, Inc. reported revenue of $245.7M.
Does TSSI pay dividends?
TSS, Inc. does not currently pay dividends.
Where can I find TSSI SEC filings?
Official SEC filings for TSS, Inc. (CIK: 0001320760) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TSSI's EPS?
TSS, Inc. has a diluted EPS of $0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TSSI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, TSS, Inc. has a SELL rating with 55% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TSSI stock overvalued or undervalued?
Valuation metrics for TSSI: ROE of 19.7% (sector avg: 16%), net margin of 6.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy TSSI stock in 2026?
Our dual AI analysis gives TSS, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TSSI's free cash flow?
TSS, Inc.'s operating cash flow is $34.9M, with capital expenditures of $32.7M. FCF margin is 0.9%.
How does TSSI compare to other Services stocks?
Vs Services sector averages: Net margin 6.2% (avg: 10%), ROE 19.7% (avg: 16%), current ratio 1.63 (avg: 1.5).