Telecommunication Systems Inc. –
Tech Company Stocks for Less Than $5 per share
As the tech industry continues to grow at a super-fast pace, need of computer systems, related devices and network rises as well. The tech company we’re going to review Telecommunication Systems in this article. The company not just took benefits from the growing trend in the tech sector but also offers much cheaper prices and retains a big growing potential in the market.
If you’re looking for small market capitalization in the tech industry, consider the Telecommunication Systems Inc. If we have to pick the top tech companies with a stock rate under $5, Telecommunication Systems Inc. could definitely get a place in the top 5 positions.
Telecommunication Systems Inc. (TSYS)
Telecommunication Systems was established in the year 1987 and the company has been trading in the public sector since the year 2000 and got hit hard in the initial stages. The company stood up again, came strong and did pretty well in the stocks in the last couple of years.
The company works in the 2 major segments:
1). Commercial.
2). Government.
The commercial part handles the “911” call routing through VoiP, cellular and other next-gen technologies. The company mainly works in US, Latin America, Europe and Asia. The current stock rate is $3.04 per share and it’s up to almost 31.60 for this year.
The government part of the company designs, installs and furnishes the wireless communication devices, network and other related systems for the clients, such as U.S. State Defense Department.
Financial Situation
The company revenue was initially reported at $86.2 million and the adjusted net income is about $3.1 million or per diluted share $0.05, up 41% from 2.2 million or equals to $0.04 per diluted share, this was in the 1st quarter of the year 2014. Compares to an adjusted net loss of $690,000 or $0.01 per share in the 2nd quarter of the year 2013.
Some of the major achievement of the Telecommunication Systems Inc. includes:
- Increased the column in the nextGen 911 Department, managed services contracts and software.
- Almost doubled the contract up to $6.6 million for DoD’s arts of Exploitation and cyber training and the support was given by E-volve technology systems for the delivery of TCS service to the U.S. Air force cyber operations training program, with a contract value of $3.3 million.
- 12 U.S. and foreign patents were issues and it took the total of patents to 361 issued in U.S. and abroad.
According to TCS chairman and CEO, Maurice B. Tose:
“We entered 2014 with the commitment that 2013 was the floor on our company’s operating results, and the second quarter represents another step of steady improvement”
He added
“As the adverse impact of government budget turbulence has abated and we continue to manage company costs, we are focusing on higher EBITDA and other operating metrics”
Analysis
Currently, Telecommunication Systems Inc. is generating almost $345 million and has a market value of about $181.03 million with a P/S ratio of 0.52.
The forward P/E is 12.20 with a PEG ratio (of 5 years expected) at 0.82.
The numbers shows a good figure that the stock is a valuable stock where the market might not be currently accounting for the potential growth in the stock price.
The Telecommunication Systems has already beaten the earnings estimates over the previous year by an average of 88.89% and almost all the analysts have upgraded the estimates of earnings for the current year.
Conclusion
While the stocks of the Telecommunication Systems is relatively cheaper when compared with the price per share, investors should take a good look and have to be careful with what the company has to offer and check if this is an appropriate fit for their portfolios.
