Stocks/TOI.V

TOI.V

Topicus.com Inc.
Technology·Software - Infrastructure
$99.73
$8.3B market cap
Claude Rating
6/10SLIGHT BUY
Revenue
$1.6B
Free Cash Flow
$379.0M
Rev Growth
+22.5%
FCF Margin
23.3%
P/FCF
13.6x
EV/FCF
14.2x
Fwd EV/EBITDA
10.4x
Fair Value
$85.00
Upside
-14.8%

Topicus.com Inc. provides vertical market software and vertical market platforms in Europe. The company acquires, builds, and manages various vertical market software businesses, which offer software solutions that address the particular needs of customers. It serves accountancy, agriculture, associations, automotive, central government, education, facility management, finance, healthcare, hospitality, legal, local government, manufacturing, mobility, real estate, and retail vertical markets. Th

2-Year Price History

$96.25-13.6%
$100$120$140$160$180volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall (EUR M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q4570.0176.7--57.0--119.7-2.91,223----------
Est2027-Q3505.0151.5--37.9--55.6-2.51,103----------
Est2027-Q2495.0138.6--34.7---9.9-4.01,047----------
Est2027-Q1480.0136.8--38.4--312.0-3.81,057----------
Est2026-Q4500.0152.5--47.5--100.0-2.5745.2----------
Est2026-Q3440.0129.8--30.8--44.0-2.2645.2----------
Est2026-Q2430.0118.3--28.0---12.9-3.9601.2----------
Est2026-Q1415.0116.2--31.1--282.2-3.3614.1----------
Act2026-Q1435.6123.767.734.2277.2268.2-3.2331.9547.1129.826.8%13.9x15.7x
Act2025-Q4439.6132.477.649.696.894.4-2.4326.1856.9129.824.6%10.9x28.8x
Act2025-Q3381.7-45.658.5-77.046.835.1-1.7524.8837.783.317.6%-5.0x33.3x
Act2025-Q2372.0106.754.325.9-14.9-18.7-3.8249.3579.9129.819.4%11.3x28.3x
Act2025-Q1355.698.853.824.7271.5268.4-2.9296.3393.0129.827.8%18.4x26.0x
Act2024-Q4364.9118.171.233.679.677.7-1.9206.2351.8129.848.8%20.5x28.3x
Act2024-Q3312.296.056.723.331.728.3-2.0234.6413.5129.836.7%14.8x17.8x
Act2024-Q2311.281.539.817.08.87.1-1.8233.8399.3129.827.4%13.0x19.2x
Act2024-Q1306.680.841.718.1227.5218.8-2.7254.6392.3129.829.0%17.1x14.9x
Act2023-Q4309.790.752.025.362.459.6-2.5179.1287.8129.840.7%19.1x14.6x
Act2023-Q3278.882.041.918.025.524.1-1.4161.7298.0129.829.4%16.8x19.2x
Act2023-Q2272.171.535.814.6-15.4-17.3-1.9172.3323.3129.824.0%17.9x18.2x
Act2023-Q1264.470.533.621.1174.0172.0-2.0197.3254.6129.826.6%18.3x14.5x
Act2022-Q4263.770.333.628.748.145.6-2.5136.8329.3129.830.1%14.4x14.7x
Act2022-Q3228.662.326.818.410.99.7-1.2135.8355.2129.819.1%20.4x--
Act2022-Q2220.658.127.420.1-32.0-33.6-1.6159.7343.6129.821.1%26.7x--
Act2022-Q1203.859.629.620.4176.0174.0-2.0217.0281.9129.826.1%23.7x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
202270.1627.3%25023.2×29.7×64.2×6.1×
202388.08+22.7%28.0%31523.2×30.6×91.0×6.4×
2024121.54+15.1%29.1%37645.3×51.4×183.8×13.1×
2025127.15+19.6%18.9%29245.2×34.9×547.3×8.2×
TTM99.73+21.2%19.5%3170.0×0.0×0.0×0.0×
2026E99.73+9.6%0.3%50.0×0.0×0.0×0.0×
2027E99.73+14.8%0.3%60.0×0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude6/10SLIGHT BUYFV: $85.00

Topicus is a well-run European VMS consolidator following the proven Constellation Software playbook, generating strong and growing FCF (~25% margins) with minimal capex requirements. The stock's 25% decline creates an interesting entry point at ~15x TTM FCF, which is cheap for a business with this quality of recurring revenue and switching costs. However, the low organic growth (3-4%), rising leverage from acquisitive strategy, and opacity around acquisition returns temper enthusiasm. The Q3 2025 Asseco write-down was non-operational but highlights capital allocation risk. At current prices, the market is pricing in ~8% revenue CAGR for a 10% return, which seems achievable but not a screaming bargain given execution risks. This is a decent business at a reasonable price — slight outperform territory but not a high-conviction buy given acquisition dependency and rising interest costs.

Catalyst Recovery in reported earnings as the Asseco one-time charge rolls off will normalize P/E ratios and attract value investors. Continued strong FCF generation and potential acceleration of European VMS M&A pipeline could drive re-rating. Demonstration of improving organic growth above 5% would be the most powerful catalyst.
Risk Acquisition treadmill risk: if deal multiples paid continue to creep up while organic growth stays at 3-4%, returns on invested capital will deteriorate. Rising European interest rates could simultaneously increase borrowing costs and reduce deal IRRs, creating a double squeeze on the model's economics.
Trend
STABLE
Mgmt
7/10
Quarter
5/10
Exp. Move
+3.0%

Valuation & Metrics

Market Stats

Price$99.73
Market Cap$8.3B
Enterprise Value$5.4B
P/S Ratio3.2x
P/FCF13.6x
EV/FCF14.2x
FCF Margin (TTM)23.3%
FCF Yield7.3%
Dividend Yield (TTM)2.3%
Annual Dilution0.0%
CurrencyCAD

TTM Financial Snapshot

Revenue$1.6B
Net Income$32.6M
Free Cash Flow$379.0M

Revenue Growth (YoY)+22.5%
EBITDA Margin19.5%
Net Margin2.0%
FCF Margin23.3%
CapEx % of Revenue0.7%
SBC % of Revenue0.0%
ROIC22.1%
WC Change % Rev1.9%
Interest Coverage8.0x

DCF Fair Value Estimate

$99.77
+0.0% upside
Fair Enterprise Value$8.3B
− Net Debt$215M
= Fair Equity$8.1B
Revenue Growth14.8% → 5.0%
FCF Margin23.3% → 20.0%
Discount Rate14.0%
Terminal EV/FCF18.0x

Forward Outlook & Risk

Forward Projections & Estimates

NTM Revenue Growth+9.6%
Forward FCF Margin23.2%
Forward EBITDA Margin28.9%
Forward P/FCF12.5x
Forward EV/FCF13.0x
Forward Int. Coverage11.0x
Model Risk Score6/10
Bankruptcy Odds2%
Est. Borrow Rate5.5%
Terminal EV/FCF18.0x
LT Growth5.0%
LT FCF Margin20.0%

Employees

Headcount4,250
Revenue / Employee$383,263
Gross Profit / Employee$99,987

Institutional Ownership

Headline & net flow

BALANCED

In Q4 2025, institutions are roughly balanced — bought 0.0% of float, sold 0.0%.

Net flow · Q4 2025
-0.0% of float (net)
Bought 0.0% · Sold 0.0%
2 filers reported

Ownership composition

Active
0.0%(+0.0% YoY)
1 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.0%(+0.0% YoY)
0 filers
Vanguard, iShares, SPDR
Market makers
0.0%(+0.0% YoY)
0 filers
Citadel, Susquehanna
Insiders
Form 4 — latest per insider
0%25%50%75%100%2021-122022-092023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
McIlrath & Eck, LLC$56K$91.94+$78K+$56K-0.5%$1.33B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
-0.46%
avg per quarter
Holders (ex-self)
-0.46%
excl. this stock
Buyers (this Q)
-0.46%
1 buyers · $0.00B in
Sellers (this Q)
+0.00%
0 sellers · $0.00B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
+1.1%
how holders react when this stock falls
On quiet Qs
+0.6%
−10% to +10% baseline
On rallies (+10%+)
-5.9%
how they react when this stock rises
Holders' portfolio flow this Q
+32.5%
inflows — adds are organic
Sellers' portfolio flow this Q
+0.0%
Sellers' overall flow ~ flat.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
+0.1%
Holder mid (any stock)
-2.1%
Holder rally (any stock)
-2.2%

Biggest decreases this quarter

New buyers this quarter

Top-5 holders · 100.0%

McIlrath & Eck, LLC--

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

011K22K33K44K$66$92$118$144$1712021-062022-032022-122024-032024-122025-092026-03
hover the chart for per-quarter detailprice (right axis)
O'Brien Greene & Co. IncDF DENT & CO INCKIRR MARBACH & CO LLC /IN/Wellington Shields & Co., LLCMcIlrath & Eck, LLC849MAR VISTA INVESTMENT PARTNERS LLCORG Partners LLCMOTCOMurphy & Mullick Capital Management Corp

Analyst Coverage

Analyst Coverage
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2025 Q3390M10M79M$0.61$0.53 – $0.692
2025 Q4439M11M91M$0.70$0.67 – $0.732
2026 Q1439M11M77M$0.60$0.56 – $0.632
2026 Q2439M11M104M$0.80$0.58 – $1.022
2026 Q3444M11M91M$0.70$0.70 – $0.701
2026 Q4486M12M102M$0.79$0.78 – $0.791
2027 Q1472M12M96M$0.74$0.74 – $0.741
2027 Q2506M13M113M$0.87$0.86 – $0.871
2027 Q3516M13M106M$0.82$0.81 – $0.821
2027 Q4558M14M118M$0.91$0.90 – $0.911

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

Topicus.com reported a significant divergence in its FY2025 results: while revenue rose to €1,552.3 million (up from €1,294.9 million), net income plummeted to €41.76 million from €91.99 million. This earnings collapse was punctuated by a massive €221.7 million expense in Q3 2025 related to its investment in Asseco Poland S.A., leading to a quarterly net loss of €120.9 million (Simply Wall St, InvestingNews). Consequently, the stock has faced a 'horrid run,' dropping approximately 25% in early 2026, reaching price levels not seen in over a year.

🐻 Bear Case

The bear case centers on severe margin compression and a reliance on low-yield organic growth. Profit margins shriveled to 2.7% in 2025 from 7.1% the prior year. Skeptics argue the company is an 'acquisition treadmill' where organic growth remains stagnant at a mere 3-4%, forcing it to overpay for acquisitions to maintain top-line appearances. Furthermore, the massive write-downs/revaluations associated with the Asseco deal highlight the risks of its capital allocation strategy. With analysts at Royal Bank of Canada lowering expectations in February 2026, the narrative is shifting from a 'growth darling' to a struggling consolidator (MarketBeat, GuruFocus).

🚩 Red Flags

1. Valuation Disconnect: Despite falling profits, the stock has traded at a P/E ratio exceeding 350x, far above the software industry average of ~80x. 2. Earnings Quality: Sharp compression in net income despite rising revenue suggests rising operational costs or poor acquisition integration. 3. Debt Sensitivity: High absolute levels of liabilities (€1.3B total) create vulnerability if financing costs remain elevated or cash flow from new acquisitions fails to cover interest (Simply Wall St, Webull).

⚔️ Competitive Threats

The primary threat is the 'AI Elephant in the room.' While VMS is traditionally 'sticky,' there is growing fear that AI-driven automation could lower the barrier to entry for new competitors to build niche vertical tools, eroding Topicus's moat. Additionally, the broader market is increasingly treating all software companies as vulnerable to AI disruption, leading to sector-wide sell-offs that Topicus has been unable to escape (Perplexity, Seeking Alpha).

💬 Customer Sentiment

While direct customer complaints are scarce due to the B2B nature of the business, investor sentiment has turned sharply negative, with 30-day returns reaching nearly -30% in early 2026. The high switching costs that protect Topicus are also a double-edged sword; they limit the company’s ability to aggressively raise prices without risking long-term churn in a budget-conscious European public sector (Simply Wall St, Reddit).