Tucows Inc Stock Research

Market Summary

USD31.10-1.21

Market Closed

-3.74%

TCX Stock Price

TCX RSI Chart

TCX Valuation

Market Cap

350.0M

Price/Earnings (Trailing)

-8.02

Price/Sales (Trailing)

1.09

EV/EBITDA

-5.59

Price/Free Cashflow

-2.57

TCX Price/Sales (Trailing)

TCX Profitability

Operating Margin

26.43%

EBT Margin

-3.72%

Return on Equity

-15.25%

Return on Assets

-2.49%

Free Cashflow Yield

-38.91%

TCX Fundamentals

TCX Revenue

Revenue (TTM)

320.5M

Revenue Y/Y

-0.82%

Revenue Q/Q

1.93%

TCX Earnings

Earnings (TTM)

-43.6M

Earnings Y/Y

-531.89%

Earnings Q/Q

-41.93%

Price Action

52 Week Range

16.0354.53

(Low)(High)

Last 7 days

6.8%

Last 30 days

44.3%

Last 90 days

49.2%

Trailing 12 Months

-34.1%

TCX Financial Health

Current Ratio

0.93

Debt/Equity

2.15

Debt/Cashflow

0.12

TCX Investor Care

Shares Dilution (1Y)

0.64%

Diluted EPS (TTM)

-4.05

Peers (Alternatives to Tucows)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
ADP	86.4B	17.7B	-4.49%	-4.63%	26.5	4.89	9.65%	13.95%
FISV	70.3B	18.1B	-7.50%	11.43%	29.01	3.88	9.25%	42.67%
SQ	38.0B	18.6B	-3.21%	-35.00%	-70.35	2.17	12.05%	-340.94%
CTSH	31.7B	19.4B	4.59%	-15.36%	13.73	1.63	2.55%	5.10%
VRSN	23.3B	1.4B	1.38%	27.52%	33.51	16.15	6.77%	-12.24%
MID-CAP
CACI	6.8B	6.6B	-4.15%	5.43%	18.44	1.03	8.44%	-9.95%
DXC	5.5B	14.8B	5.91%	-27.99%	7.64	0.37	-10.79%	217.70%
SAIC	5.3B	7.7B	-4.45%	12.59%	17.55	0.68	4.19%	8.30%
PRFT	2.7B	914.4M	19.56%	-22.68%	25.48	2.9	12.36%	58.54%
SMALL-CAP
FSLY	2.1B	447.9M	7.71%	20.79%	-12.06	4.61	20.45%	27.54%
CSGS	1.5B	1.1B	-9.26%	-21.91%	35.45	1.35	6.27%	-28.34%
TCX	350.0M	320.5M	44.31%	-34.05%	-8.02	1.09	1.88%	-2317.40%
INOD	279.1M	76.6M	68.43%	76.98%	-25	3.64	2.22%	-131.47%
UIS	265.7M	2.0B	30.22%	-65.99%	-2.51	0.13	2.93%	35.91%
BCOV	177.5K	206.7M	-0.72%	-41.70%	-0.02	8e-4	-1.41%	-1293.58%

Financials for Tucows

Income Statement (Last 12 Months)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	-0.2%	320,473,000	321,142,000	324,709,000	322,552,000	314,561,000
Cost Of Revenue	2.7%	249,362,000	242,894,000	238,894,000	236,700,000	232,523,000
Gross Profit	-9.1%	71,111,000	78,248,000	85,815,000	85,852,000	82,038,000
Operating Expenses	4.8%	115,210,000	109,910,000	105,863,000	99,743,000	93,528,000
S&GA Expenses	7.0%	57,687,000	53,937,000	51,276,000	47,274,000	43,147,000
R&D Expenses	7.4%	15,238,000	14,187,000	14,479,000	15,238,000	14,943,000
EBITDA	-159.3%	-21,543,000	-8,308,000	-2,820,000	-	-
EBITDA Margin	-157.6%	-0.07	-0.03	-0.01	-	-
Earnings Before Taxes	-68.0%	-46,689,000	-27,788,000	-12,076,000	-1,992,000	2,108,000
EBT Margin	-502.0%	-0.04	-0.01	0.01	-	-
Interest Expenses	-43.6%	-14,456,000	-10,064,000	-6,896,000	-5,477,000	-
Net Income	-58.3%	-43,634,000	-27,571,000	-16,093,000	-6,737,000	-1,805,000
Net Income Margin	-137.3%	-0.05	-0.02	-0.01	-	-
Free Cahsflow	-57.0%	-95,583,000	-60,895,000	-61,326,000	-	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	2.5%	682	665	645	595	563
Current Assets	-1.3%	168	170	172	153	154
Cash Equivalents	-49.9%	12.00	24.00	31.00	7.00	6.00
Inventory	-10.2%	7.00	7.00	6.00	5.00	4.00
Net PPE	7.9%	304	281	254	225	191
Goodwill	0.0%	130	130	130	130	130
Current Liabilities	2.1%	192	188	186	424	183
Long Term Debt	9.2%	227	208	-	-	-
Shareholder's Equity	-17.6%	80.00	97.00	106	114	115
Retained Earnings	-34.1%	37.00	56.00	69.00	77.00	80.00
Additional Paid-In Capital	20.4%	10.00	8.00	5.00	4.00	4.00
Shares Outstanding	0.1%	11.00	11.00	11.00	11.00	11.00

* denotes actual numbers (not divided by Millions)
Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	-53.6%	9.00	20.00	28.00	30.00	21.00
Share Based Compensation	11.3%	8.00	8.00	6.00	5.00	5.00
Cashflow From Investing	-6.4%	-146	-137	-149	-117	-111
Cashflow From Financing	8.0%	143	132	147	87.00	88.00
Buy Backs	-	0.00	-	-	-	-

Risks for TCX

What is the probability of a big loss on TCX?

79.2%

Probability that Tucows stock will be more than 20% underwater in next one year

40.8%

Probability that Tucows stock will be more than 30% underwater in next one year.

38.1%

Probability that Tucows stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does TCX drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Tucows was unfortunately bought at previous high price.

Drawdowns

Returns for TCX

Cumulative Returns on TCX

16.2%

10-Year Cumulative Returns

4.7%

7-Year Cumulative Returns

-12.4%

5-Year Cumulative Returns

-18.7%

3-Year Cumulative Returns

What are the long-term rolling returns for TCX?

FIve years rolling returns for Tucows.

Annualized Returns

Which funds bought or sold TCX recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-05-18	NEW YORK STATE COMMON RETIREMENT FUND	added	0.11	-102,000	138,000	-%
2023-05-18	JPMORGAN CHASE & CO	added	26.55	-56,000	149,000	-%
2023-05-16	Baker Avenue Asset Management, LP	sold off	-100	-848	-	-%
2023-05-16	SUSQUEHANNA INTERNATIONAL GROUP, LLP	new	-	266,835	266,835	-%
2023-05-15	Legal & General Group Plc	reduced	-58.31	-101,151	31,781	-%
2023-05-15	MetLife Investment Management, LLC	unchanged	-	-75,041	100,868	-%
2023-05-15	Metropolitan Life Insurance Co/NY	reduced	-30.98	-13,363	8,753	-%
2023-05-15	State of Wyoming	added	61.09	-712	8,616	-%
2023-05-15	NORTHERN TRUST CORP	added	1.99	-1,378,920	1,942,220	-%
2023-05-15	STATE OF WISCONSIN INVESTMENT BOARD	added	29.78	-181,141	526,939	-%

Latest Funds Activity

Are funds buying TCX calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own TCX

No. of Funds

Tucows News

Schedule 13G FIlings of Tucows

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 13, 2023	edgepoint investment group inc.	15.4%	1,666,019	SC 13G/A
Feb 09, 2023	vanguard group inc	5.70%	615,568	SC 13G
Feb 07, 2023	blacksheep fund management ltd	9.1%	981,230	SC 13D/A
Feb 01, 2023	blackrock inc.	6.2%	668,308	SC 13G/A
Jan 30, 2023	investmentaktiengesellschaft fuer langfristige investoren tgv	15.9%	1,712,539	SC 13G/A
Dec 20, 2022	blacksheep fund management ltd	10.6%	1,147,251	SC 13D
Jul 11, 2022	edgepoint investment group inc.	12.26%	1,319,310	SC 13G
Mar 10, 2022	blacksheep fund management ltd	10.6%	1,144,853	SC 13G/A
Feb 14, 2022	blacksheep fund management ltd	9.95%	1,061,223	SC 13G/A
Feb 11, 2022	university of notre dame du lac	6.1%	647,876	SC 13G/A

TCX Fair Value

Show Fair-Value

Recent SEC filings of Tucows

View All Filings

Date Filed	Form Type	Document
May 30, 2023	8-K	Current Report
May 09, 2023	S-8	Employee Benefits Plan
May 09, 2023	8-K	Current Report
May 08, 2023	10-Q	Quarterly Report
May 05, 2023	8-K	Current Report
Mar 15, 2023	10-K	Annual Report

Latest Insider Trading transactions for TCX

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-02-01	Blacksheep Master Fund Ltd.	sold	-1,781,490	33.1904	-53,675	-
2023-01-31	Blacksheep Master Fund Ltd.	sold	-157,167	33.4398	-4,700	-
2023-01-30	Blacksheep Master Fund Ltd.	sold	-19,960	33.2675	-600	-
2023-01-27	Blacksheep Master Fund Ltd.	sold	-255,076	33.6778	-7,574	-
2023-01-26	Blacksheep Master Fund Ltd.	sold	-74,844	34.0204	-2,200	-
2023-01-25	Blacksheep Master Fund Ltd.	sold	-66,574	35.0392	-1,900	-
2023-01-24	Blacksheep Master Fund Ltd.	sold	-161,484	36.1019	-4,473	-
2023-01-23	Blacksheep Master Fund Ltd.	sold	-161,638	35.9196	-4,500	-
2023-01-20	Blacksheep Master Fund Ltd.	sold	-383,029	35.1209	-10,906	-
2023-01-19	Blacksheep Master Fund Ltd.	sold	-323,465	33.6943	-9,600	-

About Tucows

Elliot Noss

www.tucowsinc.com

1000

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Europe. It operates through three segments: Fiber Internet Services, Mobile Services, and Domain Services. The Fiber Internet Services segment provides fixed high-speed Internet access services to individuals and small businesses primarily through the Ting website, and other billing solutions to small internet service providers. The Mobile Services segment offers mobile phones and retail telephony services; and professional services, including implementation, training, consulting, and software development and modification services, as well as operates Mobile Services Enabler platform that provides network access, provisioning, and billing services. The Domain Services segment provides wholesale and retail domain name registration services; portfolio services; and value-added services, such as hosted email, Internet security services, Internet hosting, WHOIS privacy, publishing tools, and other value-added services for end-users under the OpenSRS, eNom, Ascio, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

TCX Income Statement

2023-03-31

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Revenues	$ 80,430	$ 81,099
Cost of revenues (note 9)
Direct cost of revenues	49,290	49,421
Network, other costs	6,323	4,180
Network, depreciation of property and equipment	8,436	5,895
Network, amortization of intangible assets (note 5)	378	378
Network, impairment of property and equipment	1,942	27
Total cost of revenues	66,369	59,901
Gross profit	14,061	21,198
Expenses:
Sales and marketing	15,737	11,987
Technical operations and development	4,815	3,765
General and administrative	8,146	7,296
Depreciation of property and equipment	152	148
Loss on disposition of property and equipment	0	385
Amortization of intangible assets (note 5)	2,494	2,465
Total expenses	31,344	26,046
Income (Loss) from operations	(17,283)	(4,848)
Other income (expenses):
Interest expense, net	(7,880)	(1,796)
Income earned on sale of transferred assets, net (note 16)	4,370	4,752
Other expense, net	0	(50)
Total other income (expenses)	(3,510)	2,906
Income (Loss) before provision for income taxes	(20,793)	(1,942)
Provision for income taxes (note 7)	(1,710)	1,078
Net income (loss) for the period	(19,083)	(3,020)
Other comprehensive income, net of tax
Unrealized income (loss) on hedging activities (note 4)	68	968
Net amount reclassified to earnings (note 4)	(236)	66
Other comprehensive income (loss) net of tax expense (recovery) of ($52) and $329 for the three months ended March 31, 2023 and March 31, 2022 (note 4)	(168)	1,034
Comprehensive income (loss), for the period	$ (19,251)	$ (1,986)
Basic loss per common share (note 8) (in dollars per share)	$ (1.77)	$ (0.28)
Shares used in computing basic loss per common share (note 8) (in shares)	10,806,321	10,754,758
Diluted loss per common share (note 8) (in dollars per share)	$ (1.77)	$ (0.28)
Shares used in computing diluted loss per common share (note 8) (in shares)	10,806,321	10,754,758

TCX Balance Sheet

2023-03-31

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 11,773	$ 23,496
Accounts receivable, net of allowance for doubtful accounts of $625 as of March 31, 2023 and $693 as of December 31, 2022	24,173	18,404
Contract asset, current portion (note 9)	5,172	5,159
Inventory	6,539	7,284
Prepaid expenses and deposits	18,331	17,005
Derivative instrument asset, current portion (note 4)	1,249	1,903
Deferred costs of fulfillment, current portion (note 10)	98,258	94,198
Income taxes recoverable	2,206	2,471
Total current assets	167,701	169,920
Contract asset, long-term portion (note 9)	124	2,328
Deferred costs of fulfillment, long-term portion (note 10)	16,372	16,476
Investments	2,012	2,012
Deferred tax asset	8	0
Property and equipment	303,791	281,495
Right of use operating lease asset	22,191	20,489
Contract costs	1,976	1,827
Intangible assets (note 5)	37,084	39,790
Goodwill (note 5)	130,410	130,410
Total assets	681,669	664,747
Current liabilities:
Accounts payable	16,639	17,171
Accrued liabilities	22,032	22,653
Customer deposits	16,126	15,783
Derivative instrument liability, current portion (note 4)	129	389
Operating lease liability, current portion (note 11)	5,040	4,642
Deferred revenue, current portion (note 9)	128,977	122,894
Accreditation fees payable, current portion	662	809
Income taxes payable	2,515	2,248
Other current liabilities	0	1,600
Total current liabilities	192,120	188,189
Deferred revenue, long-term portion (note 9)	22,457	22,237
Accreditation fees payable, long-term portion	0	142
Operating lease liability, long-term portion (note 11)	13,660	12,438
Loan payable, long-term portion (note 6)	236,025	238,930
Total Redeemable Preferred Shares	124,804	90,434
Deferred tax liability	12,951	15,720
Stockholders' equity (note 13)
Common stock - no par value, 250,000,000 shares authorized; 10,831,435 shares issued and outstanding as of March 31, 2023 and 10,817,110 shares issued and outstanding as of December 31, 2022	32,461	31,868
Additional paid-in capital	9,759	8,106
Retained earnings	36,816	55,899
Accumulated other comprehensive income (note 4)	616	784
Total stockholders' equity	79,652	96,657
Total liabilities and stockholders' equity	681,669	664,747
Contingencies (note 18)