What is your opinion on Coveo and Tecsys? Do you believe them to be long term great Canadian compounders?
If so, how would the fit your usual tech pecking order of Nuvei, cts, csu, shop, lumine, otex, etc.
CVO has decent potential, sales growth has been solid, although sales slowed down to around 12% growth recently compared to previous trends of more than 20%. CVO’s cash flow is still negative, however. CVO is certainly an interesting name to put on the watchlist, but we will wait until cash flow becomes positive and consistent. It has $160M cash, but is very expensive at $1b market cap on only $125M in sales. Elliot Investment owns 48% which is good but makes trading tight at times. TCS has solid organic growth, 5-year growth was around 19% driven mainly through organic growth. TCS has a strong balance sheet and positive cash flow. The stock is acting well, and EPS is expected to triple in F2025 (April year end). Insiders own 17% and it has a small net cash balance. If we ranked all stocks noted, it would go something like this today: CSU, LMN, SHOP, TCS, NVEI, CTS, CVO