AIM:TST

Stock Analysis Report

Executive Summary

Touchstar plc, together with its subsidiaries, designs and builds rugged mobile computing devices in the United Kingdom, Europe, and internationally.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.8%

TST

4.7%

GB Communications

6.0%

GB Market


1 Year Return

-31.9%

TST

15.3%

GB Communications

-22.7%

GB Market

Return vs Industry: TST underperformed the UK Communications industry which returned 15.3% over the past year.

Return vs Market: TST underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

TSTIndustryMarket
7 Day-5.8%4.7%6.0%
30 Day-41.0%-13.0%-20.3%
90 Day-34.7%-21.2%-28.1%
1 Year-31.9%-31.9%17.2%15.3%-18.6%-22.7%
3 Year-72.2%-72.2%15.3%8.1%-13.4%-24.6%
5 Year-66.9%-66.9%64.2%47.8%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TST's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TST's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TST is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: TST is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TST is good value based on its PB Ratio (1x) compared to the GB Communications industry average (1.3x).


Next Steps

Future Growth

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

-0.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TST's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if TST's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TST's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: TST's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Touchstar performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TST is currently unprofitable.

Growing Profit Margin: TST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TST is unprofitable, and losses have increased over the past 5 years at a rate of -10.9% per year.

Accelerating Growth: Unable to compare TST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TST is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (21.9%).


Return on Equity

High ROE: TST has a negative Return on Equity (-42.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Touchstar's financial position?


Financial Position Analysis

Short Term Liabilities: TST's short term assets (£5.6M) exceed its short term liabilities (£5.0M).

Long Term Liabilities: TST's short term assets (£5.6M) exceed its long term liabilities (£927.0K).


Debt to Equity History and Analysis

Debt Level: TST's debt to equity ratio (100.4%) is considered high.

Reducing Debt: TST's debt to equity ratio has increased from 0% to 100.4% over the past 5 years.


Balance Sheet

Inventory Level: TST has a high level of physical assets or inventory.

Debt Coverage by Assets: TST's debt is covered by short term assets (assets are 2.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TST has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TST has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -18.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TST's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TST's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TST'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?

4.8yrs

Average board tenure


CEO

Mark Hardy

no data

Tenure

UK£205,000

Compensation

Mr. Mark William Hardy serves as the Chief Executive Officer of Touchstar plc (formerly known as Belgravium Technologies PLC) and has been its Executive Director since October 21, 2005. Mr. Hardy served as ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD254.46K) is about average for companies of similar size in the UK market ($USD331.41K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Ian Martin
Executive Chairman4.75yrsUK£50.00k9.5% £197.3k
Mark Hardy
CEO & Executive Directorno dataUK£205.00k0.76% £15.8k
Mark Lomax
Director of Touchstar Technologiesno datano datano data
Timothy Buchanan
Director of Touchstar Technologiesno datano datano data
John Christmas
Independent Non-Executive Director4.33yrsUK£28.00k0.39% £8.2k

4.8yrs

Average Tenure

Experienced Board: TST's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Touchstar plc
  • Ticker: TST
  • Exchange: AIM
  • Founded: 1904
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£2.076m
  • Shares outstanding: 8.48m
  • Website: https://www.touchstarplc.com

Number of Employees


Location

  • Touchstar plc
  • 7 Commerce Way
  • Trafford Park
  • Manchester
  • Greater Manchester
  • M17 1HW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2005

Biography

Touchstar plc, together with its subsidiaries, designs and builds rugged mobile computing devices in the United Kingdom, Europe, and internationally. It supplies, installs, and maintains software applications and hardware solutions for mobile applications in the airline, transport, logistics, and access control industries. The company offers supply chain data capture solutions; mobile computing hardware products; barcode/RFID/voice recognition technologies; and WMS/POD/TMS software products for the warehouse and logistics markets. It also provides on-board systems and various tools for crew; P.O.D solutions; and metering and vehicle system integration solutions, as well as designs, creates, and supports software and hardware for the oil and gas sector. In addition, the company offers security checking clearance, recording, and other services; GPS satellite tracking and vehicle telematics data; and PODStar, an EPOD solution for SMEs and other organizations. It provides its solutions under the Touchstar brand. The company was formerly known as Belgravium Technologies plc and changed its name to Touchstar plc in May 2016. Touchstar plc was incorporated in 1904 and is based in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 20:47
End of Day Share Price2020/03/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.