TSS Inc. Common Stock (TSSI)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-and-Graham-minded investor, I see TSS as a small, project-based IT services firm with a turnaround history but no obvious moat. Filed figures show revenue grew from $54.4M in fiscal year 2023 to $148.1M in fiscal 2024 and $245.7M in fiscal 2025, while net income rose from $74,000 to $6.0M and then $15.1M. That is real improvement, and the Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. But the latest filing is uneven: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $34.9M versus $44.0M in fiscal Q2 2025, while net income was $1.4M versus $1.5M. Fiscal Q1 2026 had revenue of $55.3M and net income of $2.3M, so demand is lumpy. Financial health is mixed. FairStock calculates trailing free cash flow of -$21.0M, a -8.4% FCF yield, debt-to-equity of 0.48, and an Altman Z-Score of 1.76. ROE is 32.00%, but ROCE is only 3.73%, suggesting returns on total capital are modest. At the 2026-10-13 close of $8.81, FairStock's P/E is 16.94, P/B is 3.09, EV/EBITDA is 17.70, and the Graham Number is $5.77, leaving a negative 52.69% margin of safety. The Piotroski F-Score is 5/9. I would want more stable revenue, positive cash generation, and a healthier balance sheet before calling this a bargain.

In plain English: TSS helps companies plan, build, and maintain computer systems and data-center equipment. It has been profitable in recent years, but sales fell in its latest filed quarter and it is burning cash. At the 2026-10-13 price of $8.81, the price looks high compared with the worth of its assets, even though the company is making money.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer