TSR, Inc. (TSRI) Stock Analysis

TSR, Inc. (TSRI) Technology Profile & Competitive Position

TSR, Inc. is a staffing company focused on recruiting IT professionals for various assignments and projects, serving clients primarily in the financial services sector and vendor management companies across the New York metropolitan area, New England, and the Mid-Atlantic region, with a current P/E ratio of 16.4.

What Is the Investment Thesis for TSRI?

TSR, Inc. presents a focused business model within the IT staffing sector, primarily serving the financial services industry and vendor management companies. With a market capitalization of $29.0M and a P/E ratio of 16.4, the company's valuation reflects its current profitability, indicated by a profit margin of 1.7%. Growth catalysts include the increasing demand for IT professionals in its target regions and the company's ability to expand its service offerings. Potential risks include competition from larger staffing firms and economic downturns affecting IT spending. The company's beta of 0.73 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

TSRI Key Highlights

TSR, Inc. operates with a market capitalization of $29.0M, reflecting its size within the IT staffing industry.

• The company's P/E ratio stands at 16.4, indicating the price investors are willing to pay for each dollar of earnings.
• TSR, Inc. maintains a profit margin of 1.7%, showcasing its ability to generate profit after covering operational expenses.
• A gross margin of 17.2% demonstrates the company's efficiency in managing production costs related to its staffing services.
• With a beta of 0.73, TSR, Inc. exhibits lower volatility compared to the overall market, potentially offering stability to investors.

Who Are TSRI's Competitors?

TSRI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TSRI's Key Strengths?

Established presence in key geographic markets.

• Focus on specific industries (financial services).
• Long-term client relationships.
• Expertise in IT staffing.

What Are TSRI's Weaknesses?

Small market capitalization.

• Low profit margin.
• Limited diversification of services.
• Reliance on specific geographic regions.

What Could Drive TSRI Stock Higher?

Increased demand for IT professionals in key geographic markets.

• Expansion of service offerings into high-growth areas such as cybersecurity and cloud computing.
• Development of specialized training programs to address the skills gap in the IT industry.
• Strategic partnerships with technology vendors and industry associations.

What Are the Key Risks for TSRI?

Economic downturns leading to reduced IT spending.

• Increased competition from larger staffing firms.
• Changes in technology trends rendering existing skills obsolete.
• Regulatory changes impacting the staffing industry.
• Dependence on specific geographic regions and industries.

What Are the Growth Opportunities for TSRI?

• Expansion into Cybersecurity Services: The increasing threat of cyberattacks presents a significant growth opportunity for TSR, Inc. By expanding its offerings to include specialized cybersecurity staffing, the company can tap into a market projected to reach $345 billion by 2026. This move would require investment in training and recruitment of cybersecurity professionals, but it aligns with the growing demand for IT security expertise within the financial services sector, TSRI's primary customer base.
• Geographic Expansion within the Mid-Atlantic Region: TSR, Inc. can capitalize on the growing demand for IT professionals by strategically expanding its geographic footprint within the Mid-Atlantic region. This expansion could involve opening new offices or establishing partnerships with local businesses to increase market penetration. The Mid-Atlantic region boasts a robust economy and a high concentration of businesses requiring IT support, presenting a favorable environment for TSR, Inc.'s growth.
• Focus on Cloud Computing Staffing: As businesses increasingly migrate to cloud-based solutions, the demand for cloud computing specialists is on the rise. TSR, Inc. can capitalize on this trend by focusing on recruiting and placing professionals with expertise in cloud technologies such as AWS, Azure, and Google Cloud Platform.
• Development of Specialized Training Programs: To address the shortage of skilled IT professionals, TSR, Inc. can develop specialized training programs to upskill and reskill workers in key technology areas. These programs could focus on areas such as software development, data analytics, and cybersecurity, providing individuals with the skills needed to fill in-demand IT roles. By offering these training programs, TSR, Inc. can create a pipeline of qualified candidates for its staffing services, enhancing its competitive advantage and driving revenue growth.
• Leveraging AI in Recruitment Processes: Integrating artificial intelligence (AI) into its recruitment processes can significantly enhance TSR, Inc.'s efficiency and effectiveness. AI-powered tools can automate tasks such as resume screening, candidate matching, and initial interviews, freeing up recruiters to focus on more strategic activities. By leveraging AI, TSR, Inc. can reduce recruitment costs, improve the quality of hires, and accelerate the placement process, ultimately driving revenue growth and increasing profitability.

What Are TSRI's Competitive Advantages?

• Established presence in the New York metropolitan area, New England, and the Mid-Atlantic region.
• Focus on serving vendor management companies and the financial services sector.
• Long-standing relationships with clients.
• Expertise in recruiting IT professionals for various roles and technologies.

What Does TSRI Do?

Incorporated in 1969 and based in Hauppauge, New York, TSR, Inc. operates as a staffing company specializing in the recruitment of information technology (IT) professionals. The company's core business involves providing skilled IT personnel for short-term and long-term assignments, permanent placements, and project-based work. TSR, Inc. also offers contract computer programming services to its clientele. TSR, Inc. caters to a diverse range of IT needs, including .net and java development, mobile applications for Android and IOS platforms, project management, IT security, cloud development and architecture, business analysis, UI design, network infrastructure support, and database administration. The company primarily serves vendor management companies and clients within the financial services industry, focusing on the New York metropolitan area, New England, and the Mid-Atlantic region. TSR, Inc. supplements the in-house IT capabilities of its customers by providing technical computer personnel.

What Products and Services Does TSRI Offer?

• Recruits IT professionals for short-term assignments.
• Provides IT staff for long-term projects.
• Offers permanent placement services for IT roles.
• Provides contract computer programming services.
• Supplements in-house IT capabilities of client companies.
• Serves vendor management companies.
• Caters to customers in the financial services business.

How Does TSRI Make Money?

• Generates revenue by providing IT staffing services to clients.
• Charges fees for short-term and long-term IT staff placements.
• Earns income from contract computer programming projects.
• Focuses on serving vendor management companies and the financial services sector.

What Industry Does TSRI Operate In?

TSR, Inc. operates within the IT staffing industry, which is characterized by high demand for skilled professionals and increasing reliance on technology across various sectors. The industry is competitive, with companies vying for market share by offering specialized services and building strong client relationships. Market trends include the growing need for cybersecurity experts, cloud computing specialists, and data analysts. TSR, Inc.'s focus on the financial services sector positions it within a niche market with specific IT requirements.

Who Are TSRI's Key Customers?

• Vendor management companies.
• Financial services businesses.
• Companies in the New York metropolitan area.
• Businesses in New England.
• Organizations in the Mid-Atlantic region.

Company Profile

TSR, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Hauppauge, US. The company is led by CEO Thomas C. Salerno. TSRI has traded publicly since 1978.

TSR, Inc. (TSRI) Valuation Context

Valued at $29.0M, TSRI is classified as a micro-cap stock.

Return on equity for TSR, Inc. stands at 11.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.5%, showing how much profit it generates from its asset base. TSRI trades at a trailing price-to-earnings ratio of 16.45, below the Technology sector average of ~34x. Its free cash flow yield is 6.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.01 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.1%, the inverse of the P/E and a quick read on earnings relative to price.

TSR, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 16.00 places it in the safe zone, indicating low near-term bankruptcy risk.

TSRI Financials

TSRI Latest News

No recent news available for TSRI.

TSRI Technology Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources