Stock fact sheet · data as of
TSS, Inc. (TSSI): fair value, margin of safety and Wheel Score
Technology · Information Technology Services · United States · High Growth
Is TSSI undervalued?
TSSI has a margin of safety of 37%: the stock closed at 7.83 on 16 Oct 2026 against a GLS average fair value of 12.47. 3 of the 6 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (1.64) and GLS Growth (37.60). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TSSI under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for TSSI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 13.55 | +73% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 6.89 | -12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 8.31 | +6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.64 | -79% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 37.60 | +380% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.82 | -13% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.3661 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.00 | +66% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
TSS, Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 12.8%, ROE 19.7%, ROA 8.2% - with debt at 0.54 times equity and negative free cash flow.
TSS, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Procurement 87%, System Integration 10%, Facilities 2% (fiscal year FY2024).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 12.8% |
|---|---|---|---|
| GLS Moat | 4.5 / 10 | ROE | 19.7% |
| Debt / equity | 0.54 | ROA | 8.2% |
| Free-cash-flow yield | -9.5% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 62: Fair
A Wheel Score of 62 puts TSS, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 25/25, Health 11/20, Moat 7/15, Premium 9/20 and Stability 10/20; the weakest part is Premium (9/20).
Implied volatility is 104% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (9 of 20) because volatility this high usually comes with a reason. Chain open interest is 40,174 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.4M shares a day on a market cap of $221M, with a beta of 2.01 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 37% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 7 / 15 | moat 4.5/10 | |
| Premium | 9 / 20 | implied volatility 104% | |
| Stability | 10 / 20 | 1.4M shares/day, $221M cap, beta 2.01 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 16 Nov 2026, 31 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to TSS, Inc. by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ALIT Alight, Inc. | 9.22 | 118.28 | +92% | 45Weak | $244M |
| CNDT Conduent Incorporated | 1.57 | 13.94 | +89% | 45Weak | $244M |
| FCCN Spectral Capital Corporation | 2.61 | 0.2884 | -805% | 20No options | $251M |
| SSCC Spirits Cap Corp. | 2.22 | 0.0147 | -14974% | 13No options | $260M |
| NCRRP NCR Voyix Corporation | 1,002.00 | 493.06 | -103% | 21No options | $276M |
| HCKT The Hackett Group, Inc. | 11.66 | 13.89 | +16% | 63Fair | $290M |
| UIS Unisys Corporation | 2.16 | 40.08 | +95% | 45Weak | $157M |
| TLS Telos Corporation | 4.18 | 8.12 | +49% | 45Weak | $312M |
| GSDT GSDT Fintech Group Inc. | 0.2200 | - | - | 28No options | $331M |
| DAVA Endava plc | 2.06 | 45.11 | +95% | 45Weak | $117M |
| VRRM Verra Mobility Corporation | 2.94 | 8.35 | +65% | 78Good | $447M |
| WYFI WhiteFiber, Inc. Ordinary Shares | 12.73 | 1.78 | -615% | 33Weak | $495M |
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Start free See the Sunday ScanQuestions about TSSI
Is TSSI undervalued right now?
By the GLS models, yes: at 7.83 the stock is 37% below the average fair value of 12.47 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TSSI and what does it mean?
TSSI scores 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TSSI?
12.47 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does TSS, Inc. report earnings next?
The next earnings report is due on 16 Nov 2026, 31 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TSSI have listed options, and how liquid are they?
Yes. The nightly snapshot found 146 listed contracts with 40,174 open interest across all expiries and implied volatility of 104% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.