Trade-Ideas LLC identified

TeleCommunication Systems

(

TSYS

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified TeleCommunication Systems as such a stock due to the following factors:

  • TSYS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • TSYS has traded 76.626900000000006230038707144558429718017578125 options contracts today.
  • TSYS is making at least a new 3-day high.
  • TSYS has a PE ratio of 1.
  • TSYS is mentioned 1.58 times per day on StockTwits.
  • TSYS has not yet been mentioned on StockTwits today.
  • TSYS is currently in the upper 20% of its 1-year range.
  • TSYS is in the upper 35% of its 20-day range.
  • TSYS is in the upper 45% of its 5-day range.
  • TSYS is currently trading above yesterday's high.

TST Recommends

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More details on TSYS:

TeleCommunication Systems, Inc. develops and delivers wireless communication technology in the United States, Europe, Latin America, Africa, and Asia. The company operates through two segments, Commercial and Government. TSYS has a PE ratio of 1. Currently there is 1 analyst that rates TeleCommunication Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for TeleCommunication Systems has been 994,100 shares per day over the past 30 days. TeleCommunication Systems has a market cap of $281.3 million and is part of the technology sector and computer software & services industry. The stock has a beta of 0.78 and a short float of 1.9% with 1.25 days to cover. Shares are up 59.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TeleCommunication Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TELECOMMUNICATION SYS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TELECOMMUNICATION SYS INC continued to lose money by earning -$0.03 versus -$0.99 in the prior year. This year, the market expects an improvement in earnings ($0.30 versus -$0.03).
  • 36.29% is the gross profit margin for TELECOMMUNICATION SYS INC which we consider to be strong. Regardless of TSYS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TSYS's net profit margin of 2.98% is significantly lower than the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Software industry and the overall market, TELECOMMUNICATION SYS INC's return on equity is below that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.19 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, TSYS has managed to keep a strong quick ratio of 1.89, which demonstrates the ability to cover short-term cash needs.

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