Chester, TSS is the #2 player in the credit card processing field. #1
is FDC. FDC has 16X the revenue. But only 4X the market cap. WHich
suggests TSS might be heavily overvalued.
Most of TSS shares are owned by another co., which actually has a
smaller market cap. than TSS.
I think the industry as a whole is doing pretty well. All those credit
card offers you get in the mail mean that people are using lots of
credit cards.
Take a look at the following table of TSS rev & eps, and you will see
that they are indeed doing quite well. It's just a matter of
valuation.
REVENUES (Thousands of U.S. Dollars)
QUARTERS 1993 1994 1995 1996
MAR 35,576 40,977 53,380 71,102
JUN 36,517 44,836 59,134 74,489
SEP 38,789 47,938 66,108 80,179
DEC 41,192 53,820 71,086 85,878*
TOTAL 152,074 187,571 249,708 311,648*
EARNINGS PER SHARE
MAR 0.030 0.035 0.040 0.050
JUN 0.038 0.040 0.045 0.060
SEP 0.040 0.045 0.055 0.090
DEC 0.050 0.055 0.075 0.110*
TOTAL 0.158 0.175 0.215 0.310* |
