April 13, 2025
Total Telcom Inc. (TTZ.V / TTLTF) is a Canadian microcap company providing remote asset management solutions through wireless technologies. With nearly 55% of its $3.37 million market cap in cash, no debt and solid profitability, the downside is limited. It has three main revenue streams—hardware sales, recurring communication services, and race-day equipment rentals—with total gross margins exceeding 60%. The recurring revenue business has reached break-even, and management expects further growth as new products are commercialized. The company’s real advantage lies in cost-effective, user-friendly integration of its technology, helping clients reduce manual labor, optimize operations, and manage assets remotely with low data usage and high reliability.
The business is capitalizing on emerging trends in satellite communications, environmental monitoring, and white-label partnerships. Management owns over 28% of the company and is aligned with shareholder interests through modest compensation and significant equity stakes. The company’s clean balance sheet and scalable business model position it well for future growth. With market demand rising for remote data solutions due to climate and infrastructure needs, and with satellite communication markets projected to quadruple by 2028, Total Telcom appears conservatively valued with limited downside and strong upside potential if growth accelerates through marketing and strategic partnerships.
The market cap is $3.37 million while enterprise value is $1.49 million.
Here are the metrics of cheapness:
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- EV/EBITDA = 2.82
- P/E = 15.58
- P/B = 0.90
- P/CF = 4.13
- P/S = 2.35
Insider ownership is 28.8%, which is good. ROE (return on equity) is 6.3%, which is low but should improve as the company’s earnings improve. The Piotroski F_Score is decent at 6.
Cash is $3 million while debt is zero. And TL/TA is 10.9%, exceptionally low.
Intrinsic value scenarios:
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- Low case: If there’s a bear market or a recession, the stock could decline temporarily. With 55% of the market cap in cash, no debt and solid profitability, the downside is limited.
- Mid case: Net income could reach $500,000 in 2026 assuming $2.5 million in sales and a 20% net income margin. With a P/E of 15, the market cap would be $7.5 million. This translates into a share price of $0.27, which is over 120% higher than today’s $0.12.
- High case: With a P/E of 20, the market cap would be $10 million. This translates into a share price of $0.36, which is almost 200% higher than today’s $0.12.
RISKS
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- Tariffs are weighing on the stock in the near term, but the company is looking to expand in places such as Canada, South America, Europe, and Australia. And as noted, with 55% of the market cap in cash, no debt and solid profitability, the downside is limited.
BOOLE MICROCAP FUND
An equal weighted group of micro caps generally far outperforms an equal weighted (or cap-weighted) group of larger stocks over time. See the historical chart here: https://boolefund.com/best-performers-microcap-stocks/
This outperformance increases significantly by focusing on cheap micro caps. Performance can be further boosted by isolating cheap microcap companies that show improving fundamentals. We rank microcap stocks based on these and similar criteria.
There are roughly 10-20 positions in the portfolio. The size of each position is determined by its rank. Typically the largest position is 15-20% (at cost), while the average position is 8-10% (at cost). Positions are held for 3 to 5 years unless a stock approachesintrinsic value sooner or an error has been discovered.
The mission of the Boole Fund is to outperform the S&P 500 Index by at least 5% per year (net of fees) over 5-year periods. We also aim to outpace the Russell Microcap Index by at least 2% per year (net). The Boole Fund has low fees.
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Disclosures: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Boole Capital, LLC.