AIM:TRCS

Stock Analysis Report

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Executive Summary

Tracsis plc, together with its subsidiaries, provides software development and consultancy services for the rail industry. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Tracsis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRCS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

TRCS

-2.6%

GB Software

-0.7%

GB Market


1 Year Return

-10.7%

TRCS

0.4%

GB Software

-16.4%

GB Market

Return vs Industry: TRCS underperformed the UK Software industry which returned 3.6% over the past year.

Return vs Market: TRCS exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

TRCSIndustryMarket
7 Day-5.3%-2.6%-0.7%
30 Day-8.2%-3.3%0.7%
90 Day-6.1%1.2%-3.2%
1 Year-10.6%-10.7%1.7%0.4%-13.2%-16.4%
3 Year11.5%10.8%-28.5%-37.5%-9.3%-20.5%
5 Year22.8%21.3%24.6%2.8%15.2%-10.7%

Price Volatility Vs. Market

How volatile is Tracsis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tracsis undervalued compared to its fair value and its price relative to the market?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRCS (£5.4) is trading below our estimate of fair value (£9.23)

Significantly Below Fair Value: TRCS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRCS is good value based on its PE Ratio (29.1x) compared to the GB Software industry average (32.8x).

PE vs Market: TRCS is poor value based on its PE Ratio (29.1x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRCS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRCS is good value based on its PB Ratio (3.1x) compared to the GB Software industry average (3.8x).


Next Steps

Future Growth

How is Tracsis forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tracsis has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tracsis performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRCS has high quality earnings.

Growing Profit Margin: TRCS's current net profit margins (9.4%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: TRCS's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: TRCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRCS had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Software industry average (7.7%).


Return on Equity

High ROE: TRCS's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Tracsis's financial position?


Financial Position Analysis

Short Term Liabilities: TRCS's short term assets (£34.9M) exceed its short term liabilities (£16.2M).

Long Term Liabilities: TRCS's short term assets (£34.9M) exceed its long term liabilities (£11.4M).


Debt to Equity History and Analysis

Debt Level: TRCS is debt free.

Reducing Debt: TRCS has not had any debt for past 5 years.

Debt Coverage: TRCS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TRCS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Tracsis's current dividend yield, its reliability and sustainability?

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRCS's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: TRCS's dividend (0.33%) is low compared to the top 25% of dividend payers in the UK market (5.24%).


Stability and Growth of Payments

Stable Dividend: TRCS is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: TRCS is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TRCS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRCS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Chris Barnes (45 yo)

1.42yrs

Tenure

UK£150,000

Compensation

Mr. Christopher Matthew Barnes, also known as Chris, serves as Chief Executive Officer and Executive Director at Tracsis plc since May 1, 2019. He is the Managing Director of Ricardo UK Limited's automotiv ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD195.25K) is below average for companies of similar size in the UK market ($USD665.09K).

Compensation vs Earnings: Insufficient data to compare Chris's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Barnes
CEO & Executive Director1.42yrsUK£150.00kno data
Maxwell Cawthra
CFO, Company Secretary & Executive Director9.17yrsUK£229.00k0.58%
£ 907.3k
Raymond Kwan
Founder & Chief Technical Officerno dataUK£21.00kno data
Andrew Whawell
Managing Director of Condition Monitoringno datano datano data
Alan Wilson
Member of Advisory Board & Divisional MD7.58yrsno datano data
Alexander Johnson
Managing Director of Traffic & Data Services4.08yrsno datano data
Alex Sarginson
Managing Director of Operations & Planning Systems4yrsno datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: TRCS's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Barnes
CEO & Executive Director1.42yrsUK£150.00kno data
Maxwell Cawthra
CFO, Company Secretary & Executive Director9.17yrsUK£229.00k0.58%
£ 907.3k
Alan Wilson
Member of Advisory Board & Divisional MD7.58yrsno datano data
Christopher Cole
Independent Non-Executive Chairman6.5yrsUK£50.00k0.024%
£ 37.8k
Elizabeth Richards
Independent Non-Executive Director4.08yrsUK£28.00kno data
Robert Watson
Member of Advisory Board7.58yrsUK£44.00kno data
Nigel Pennington
Member of Advisory Board7.58yrsno datano data
Lisa Charles-Jones
Independent Non-Executive Director4.17yrsUK£28.00kno data
Macdonald Andrade
Independent Non-Executive Director1.92yrsUK£19.00k0.014%
£ 22.2k

6.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: TRCS's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tracsis plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tracsis plc
  • Ticker: TRCS
  • Exchange: AIM
  • Founded: 2004
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£157.425m
  • Shares outstanding: 29.15m
  • Website: https://www.tracsis.com

Number of Employees


Location

  • Tracsis plc
  • Nexus
  • Discovery Way
  • Leeds
  • West Yorkshire
  • LS2 3AA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRCSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2007
TCII.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2007

Biography

Tracsis plc, together with its subsidiaries, provides software development and consultancy services for the rail industry. It operates in two segments, Rail Technology and Services, and Traffic & Data Serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 20:30
End of Day Share Price2020/10/26 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.