AIM:TRCS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

TRCS

4.1%

GB Software

-0.4%

GB Market


1 Year Return

3.5%

TRCS

6.6%

GB Software

2.9%

GB Market

Return vs Industry: TRCS underperformed the UK Software industry which returned 6.6% over the past year.

Return vs Market: TRCS matched the UK Market which returned 2.9% over the past year.


Shareholder returns

TRCSIndustryMarket
7 Day-1.7%4.1%-0.4%
30 Day-2.9%1.7%-1.4%
90 Day-7.8%-8.4%-2.1%
1 Year3.8%3.5%12.7%6.6%7.9%2.9%
3 Year11.7%10.8%6.6%-11.0%18.0%3.6%
5 Year77.0%74.8%69.3%35.6%35.8%6.4%

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?

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TRCS (£5.9) is trading below our estimate of fair value (£5.96)

Significantly Undervalued: TRCS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TRCS is good value based on its PE Ratio (23.7x) compared to the Software industry average (27.9x).

PE vs Market: TRCS is poor value based on its PE Ratio (23.7x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TRCS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

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


Next Steps

Future Growth

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

-9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRCS's earnings are forecast to decline over the next 3 years (-9.4% per year).

Earnings vs Market: TRCS's earnings are forecast to decline over the next 3 years (-9.4% per year).

High Growth Earnings: TRCS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TRCS's revenue (17.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: TRCS's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TRCS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tracsis performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRCS's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: TRCS's earnings growth over the past year (67.1%) exceeds its 5-year average (17.8% per year).

Earnings vs Industry: TRCS earnings growth over the past year (67.1%) exceeded the Software industry 7%.


Return on Equity

High ROE: TRCS's Return on Equity (16%) is considered low.


Return on Assets

ROA vs Industry: TRCS has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: TRCS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tracsis's financial position?


Financial Position Analysis

Short Term Liabilities: TRCS's short term assets (£27.4M) exceeds its short term liabilities (£12.3M)

Long Term Liabilities: TRCS's short term assets (27.4M) exceeds its long term liabilities (7.4M)


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

Inventory Level: TRCS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TRCS's debt is covered by short term assets.


Next Steps

Dividend

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

0.27%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TRCS's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: TRCS's dividend (0.27%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

What is the CEO of Tracsis's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Chris Barnes (44yo)

0.4yrs

Tenure

0

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


Management Age and Tenure

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: TRCS's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: TRCS's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Alan Wilson (60yo)

    Member of Advisory Board & Divisional MD

    • Tenure: 6.6yrs
  • Raymond Kwan (62yo)

    Founder & Chief Technical Officer

    • Tenure: 0yrs
    • Compensation: UK£21.00k
  • Alex Johnson (52yo)

    Managing Director of Traffic & Data Services

    • Tenure: 3.1yrs
  • Max Cawthra (41yo)

    CFO & Executive Director

    • Tenure: 8.2yrs
    • Compensation: UK£245.00k
  • Andy Whawell

    Managing Director of Condition Monitoring

    • Tenure: 0yrs
  • Alex Sarginson

    Managing Director of Operations & Planning Systems

    • Tenure: 3yrs
  • Chris Barnes (44yo)

    CEO & Director

    • Tenure: 0.4yrs

Board Members

  • Chris Cole (73yo)

    Independent Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: UK£50.00k
  • Alan Wilson (60yo)

    Member of Advisory Board & Divisional MD

    • Tenure: 6.6yrs
  • Liz Richards (61yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£28.00k
  • Robert Watson (59yo)

    Member of Advisory Board

    • Tenure: 6.6yrs
    • Compensation: UK£44.00k
  • Max Cawthra (41yo)

    CFO & Executive Director

    • Tenure: 8.2yrs
    • Compensation: UK£245.00k
  • Nigel Pennington

    Member of Advisory Board

    • Tenure: 6.6yrs
  • Lisa Charles-Jones (48yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£28.00k
  • Mac Andrade (43yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Chris Barnes (44yo)

    CEO & Director

    • Tenure: 0.4yrs

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£169.821m
  • Shares outstanding: 28.78m
  • 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 Analysis2019/10/19 21:01
End of Day Share Price2019/10/18 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.