TCS is on a roll would you still consider it a buy even though it’s at a 52 week high?
Thanks!
TCS is a small name ($500M market cap) which pays a yield of 0.9%, and is expected to grow its sales and earnings nicely in the coming years. It has very low debt levels, is profitable, trades at a reasonable forward sales multiple of 2.8X, and generates a small level of free cash flow. Its balance sheet has been expanding, and what we like about TCS is that it serves a unique part of the broader economy's supply chain, by focusing on the healthcare and hospital industries. These are industries which have been underserved in the supply chain space, and we feel that TCS has a good value proposition here.
It's at a 52-week high, but yet its price is still only at February 2022 and October 2020 levels, so we feel it has a long runway. Its long-term trend has been strong, and we feel that this bounce can start a longer-term run for the company.