📊 TSSI Key Takeaways
Is TSS, Inc. (TSSI) a Good Investment?
TSS faces severe operational headwinds with flat revenue growth, extremely low margins of 4.1%, and negative operating cash flow of -$14.9M despite positive net income—a critical disconnect indicating serious cash generation problems. While the company maintains a $66M cash buffer and reasonable liquidity ratios, it is burning cash operationally and cannot cover interest expenses from operating income (0.7x coverage ratio), making the current trajectory unsustainable.
TSS, Inc. Key Strengths (TSSI)
- Strong cash position of $66M provides operational buffer
- Good liquidity ratios (current ratio 2.18x, quick ratio 1.99x)
- Conservative debt levels (0.22x debt-to-equity ratio)
TSSI Stock Risks: TSS, Inc. Investment Risks
- Negative operating cash flow of -$14.9M and negative free cash flow of -$15.5M signal severe cash generation dysfunction
- Stagnant revenue growth (0% YoY) with no organic expansion visible
- Critically low gross margin of 15.9% and net margin of 4.1% for management consulting sector
- Interest coverage ratio of 0.7x indicates inability to service debt from operations
- Weak returns on capital (ROE 2.9%, ROA 1.5%) suggest fundamental business challenges
- Cash position will deplete without operational improvement given current burn rate
Key Metrics to Watch
- Operating cash flow trend—must turn positive
- Revenue growth acceleration—current 0% YoY is concerning
- Gross margin expansion—15.9% is unsustainably low
- Working capital changes—possible source of cash flow deterioration
- Monthly cash burn rate—critical for sustainability modeling
TSS, Inc. (TSSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.18x current ratio provides a solid financial cushion.
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 |
|---|---|---|---|
| Q1 2026 | $55.3M | $2.3M | $0.08 |
| 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 |
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 grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TSSI's key strengths?
Claude: Strong cash position of $66M provides operational buffer. Good liquidity ratios (current ratio 2.18x, quick ratio 1.99x).
What are the risks of investing in TSSI?
Claude: Negative operating cash flow of -$14.9M and negative free cash flow of -$15.5M signal severe cash generation dysfunction. Stagnant revenue growth (0% YoY) with no organic expansion visible.
What is TSSI's revenue and growth?
TSS, Inc. reported revenue of $55.3M.
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 $0.08.
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 grade reflects both perspectives for balanced insights.
What is TSSI's fundamental grade?
Based on our AI fundamental analysis in June 2026, TSS, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TSSI stock overvalued or undervalued?
Valuation metrics for TSSI: ROE of 2.9% (sector avg: 16%), net margin of 4.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is TSSI's AI grade for 2026?
Our dual AI analysis gives TSS, Inc. a combined C grade 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 $-14.9M, with capital expenditures of $534.0K. FCF margin is -27.9%.
How does TSSI compare to other Services stocks?
Vs Services sector averages: Net margin 4.1% (avg: 10%), ROE 2.9% (avg: 16%), current ratio 2.18 (avg: 1.5).