Tucows Inc. — Earnings Quality Grade F
TCX · Technology
Major red flags
Screening Summary
管理层信号
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 23 days, change +2 days YoY
AR growth 17.3% exceeds revenue growth 7.7%
Revenue 7.7%, CFFO 70.8%. Cash follows revenue
Expense Quality
Inventory -2.6% vs COGS 6.1%. Normal
CapEx growth -69.6% vs revenue 7.7%. Normal
SG&A/Gross Profit = 97.1%, exceeds 70%
Gross margin 24.1%, change +1.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -9.6%. Low accruals
Cash $0.0B covers only 9% of debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $0.2B = -91% of equity. Manageable
Debt/EBITDA = 15.1x (>4x). Interest coverage = -0.3x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.86 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25