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TSS

TSSI
37
Information Technology Services · Technology
Exchange
NASDAQ
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Weak
Stability
Good
Valuation
Good

Winston Score History

The full picture

TSS, Inc. (TSSI) is a small technology services company that helps businesses set up and manage data centers and IT infrastructure. Its core services include designing, building, and maintaining the physical spaces and systems that house computer servers and networking equipment. The company mainly serves government agencies, defense contractors, and large enterprises that need reliable, secure computing environments.

TSSI earns revenue by charging fees for its services, including facility design, equipment installation, and ongoing maintenance contracts. The company operates primarily in the United States and, with a market cap around $300 million, remains a small player in a fragmented industry dominated by much larger competitors. Its focus on government and defense clients provides some stability through long-term contracts, but the thin operating margin of roughly 5% leaves little room for error. The key growth driver is rising demand for data center capacity tied to artificial intelligence and cloud computing, though winning and retaining large government contracts remains a critical risk.

Score breakdown

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Quality

Profit per sale
Gross Margin
22.8%
Thin — 22.8% gross margin
Profit after running costs
Operating Margin
0.8%
Thin — 0.8% operating margin
Return on the money invested
ROCE
7.1%
Weak — 7.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-26.5%
Shrinking sales (-26.5% YoY)
Profit growth
EPS YoY
+50.8%
Earnings growing fast (+50.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
-65%
Weak — only -65% of profit becomes cash
Spare cash per sale
FCF Margin
-10.9%
Burning cash (-10.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.33
Conservative — low debt load (0.33)
Covers its interest
Interest Cover
2.26x
Tight — interest eats into profit (2.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
14.2x
no trend
Attractive valuation — P/E 14.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-33.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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