AIM:TST

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet.

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

0%

TST

-1.4%

GB Communications

0.07%

GB Market


1 Year Return

-1.3%

TST

46.5%

GB Communications

-15.4%

GB Market

Return vs Industry: TST underperformed the UK Communications industry which returned 46.5% over the past year.

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


Shareholder returns

TSTIndustryMarket
7 Day0%-1.4%0.07%
30 Day-10.8%6.7%2.2%
90 Day-29.5%3.3%-2.1%
1 Year-1.3%-1.3%48.3%46.5%-12.1%-15.4%
3 Year-50.3%-50.3%134.8%121.8%-8.4%-19.7%
5 Year-40.3%-40.3%152.8%131.7%16.4%-9.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TST (£0.37) is trading below our estimate of fair value (£24.6)

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


Price To Earnings Ratio

PE vs Industry: TST is good value based on its PE Ratio (19.4x) compared to the GB Communications industry average (23.9x).

PE vs Market: TST is poor value based on its PE Ratio (19.4x) compared to the UK market (18.3x).


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 (1.5x) compared to the GB Communications industry average (1.7x).


Next Steps

Future Growth

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

20.1%

Forecasted Tech 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 Touchstar 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 Touchstar performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TST has a large one-off gain of £219.0K impacting its June 30 2020 financial results.

Growing Profit Margin: TST became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TST has become profitable over the past 5 years, growing earnings by 33.3% per year.

Accelerating Growth: TST has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TST has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-39.2%).


Return on Equity

High ROE: TST's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Touchstar's financial position?


Financial Position Analysis

Short Term Liabilities: TST's short term assets (£4.7M) exceed its short term liabilities (£3.7M).

Long Term Liabilities: TST's short term assets (£4.7M) exceed its long term liabilities (£963.0K).


Debt to Equity History and Analysis

Debt Level: TST's debt to equity ratio (54%) is considered high.

Reducing Debt: TST had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TST's debt is well covered by operating cash flow (203.1%).

Interest Coverage: Insufficient data to determine if TST's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Touchstar 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 recent payouts.

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

5.3yrs

Average board tenure


CEO

Mark Hardy

no data

Tenure

UK£207,000

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 ($USD270.07K) is about average for companies of similar size in the UK market ($USD358.67K).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Martin
Executive Chairman5.33yrsUK£50.00k9.5%
£ 297.9k
Mark Hardy
CEO & Executive Directorno dataUK£207.00k0.76%
£ 23.9k
Mark Lomax
Director of Touchstar Technologiesno datano datano data
Timothy Buchanan
Director of Touchstar Technologiesno datano datano data
John Christmas
Independent Non-Executive Director4.92yrsUK£28.00k0.39%
£ 12.3k

5.3yrs

Average Tenure

Experienced Board: TST's board of directors are considered experienced (5.3 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

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£3.136m
  • 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 applicati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 22:40
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.