t42 IoT Tracking Solutions PLC (TRAC) AI Stock Analysis

• Market Cap: £1.38M
• Dividend Yield: N/A
• Average Volume (3M): 210.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: -1.05%
• EPS Growth: -8.05%
• Country: UK
• Employees: 18
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 65,626,360
• 10 Day Avg. Volume: 164,768
• 30 Day Avg. Volume: 210,074
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.84
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 3.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: 2.00p ▲(2.56% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profit margins, and a heavily leveraged balance sheet. Technical analysis indicates short-term overbought conditions, but overall bearish momentum. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score.

Positive Factors

Business Model Diversification

The diversified revenue streams from devices, software, and subscriptions provide a stable foundation for growth and resilience against market fluctuations.

Industry Focus

Specialization in sectors like logistics and asset management positions the company to capitalize on increasing demand for IoT solutions in these growing industries.

Product Innovation

Continued innovation in IoT tracking solutions enhances competitive edge, catering to evolving customer needs and driving long-term growth.

Negative Factors

Financial Instability

The negative equity and high leverage indicate financial instability, threatening the company's ability to sustain operations and invest in growth.

Declining Revenue

Consistent revenue decline reflects challenges in market competitiveness and customer retention, impacting long-term sustainability.

Negative Profit Margins

Persistent negative profit margins indicate operational inefficiencies and inability to cover costs, hindering profitability and growth potential.

t42 IoT Tracking Solutions PLC Business Overview & Revenue Model

Company Description

t42 IoT Tracking Solutions PLC (TRAC) specializes in providing innovative tracking and monitoring solutions through Internet of Things (IoT) technology. The company operates primarily in sectors such as logistics, transportation, and asset management, offering a range of products including GPS trackers, telemetry devices, and software platforms that enable real-time data collection and analysis. t42 aims to enhance operational efficiency and improve decision-making for businesses by delivering comprehensive tracking solutions tailored to various industry needs.

How the Company Makes Money

t42 IoT Tracking Solutions PLC generates revenue through multiple streams, primarily by selling IoT tracking devices and software solutions to businesses in logistics and asset management sectors. The company also offers subscription-based services for its software platform, which provides ongoing access to data analytics, reporting tools, and customer support. Additionally, t42 may engage in partnerships with telecommunications companies and other tech firms to integrate their tracking solutions into broader service offerings, enhancing their market reach and driving additional revenue. Furthermore, revenue is bolstered through consulting services that assist businesses in implementing and optimizing IoT tracking systems.

t42 IoT Tracking Solutions PLC Financial Statement Overview

Summary

t42 IoT Tracking Solutions PLC is facing significant financial challenges, with declining revenues, negative profit margins, and a heavily leveraged balance sheet. The company's ability to generate cash flow is weak, and its reliance on debt poses a risk to financial stability. Immediate strategic actions are necessary to improve operational efficiency and financial health.

Income Statement

The company has experienced declining revenue over the years, with a negative revenue growth rate of -4.13% in the most recent year. Gross profit margin has decreased from 53% to 36.99%, indicating reduced efficiency in cost management. The net profit margin is significantly negative at -42.04%, reflecting ongoing losses. Both EBIT and EBITDA margins are negative, highlighting operational challenges.

Balance Sheet

The balance sheet shows a concerning financial structure with a negative stockholders' equity and a high debt-to-equity ratio of -1.73, indicating financial instability. Return on equity is positive due to negative equity, but this is misleading as it reflects losses. The equity ratio is negative, suggesting the company is heavily reliant on debt financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -2919.05%, although the free cash flow to net income ratio is close to 1, indicating cash generation relative to net losses. The operating cash flow to net income ratio is low at 0.096, suggesting limited cash flow from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.21M	4.16M	4.00M	4.04M	4.21M	5.04M
Gross Profit	857.50K	1.54M	2.12M	1.68M	1.29M	1.67M
EBITDA	-261.75K	-793.00K	878.00K	-515.00K	-2.25M	-1.70M
Net Income	-630.00K	-1.75M	-420.00K	-1.01M	-2.96M	-2.04M
Balance Sheet
Total Assets	3.93M	4.37M	5.00M	5.05M	6.40M	6.36M
Cash, Cash Equivalents and Short-Term Investments	207.00K	147.00K	186.00K	174.00K	1.53M	264.00K
Total Debt	4.19M	4.64M	3.91M	3.36M	3.10M	1.75M
Total Liabilities	7.18M	7.06M	5.94M	5.59M	6.20M	4.25M
Stockholders Equity	-3.25M	-2.68M	-939.00K	-538.00K	193.00K	2.10M
Cash Flow
Free Cash Flow	94.00K	592.00K	-349.00K	-1.44M	-714.00K	-688.00K
Operating Cash Flow	93.50K	602.00K	-199.00K	-951.00K	-382.00K	-389.00K
Investing Cash Flow	-32.50K	-152.00K	-4.00K	-460.00K	-336.00K	-388.00K
Financing Cash Flow	-25.00K	-489.00K	214.00K	51.00K	1.99M	883.00K

t42 IoT Tracking Solutions PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRAC, the sentiment is Positive. The current price of 1.95 is above the 20-day moving average (MA) of 1.88, below the 50-day MA of 1.95, and below the 200-day MA of 2.03, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 71.40 is Negative, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TRAC.

t42 IoT Tracking Solutions PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	74 Outperform	£133.18M	25.30	27.08%	2.00%	8.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SRT	55 Neutral	£193.72M	91.11	―	―	―	―
TRAC	41 Neutral	£1.38M	-1.30	―	―	-1.05%	-8.05%
WPHO	39 Underperform	£41.92M	-37.18	-17.36%	―	-14.81%	-1362.50%
PIP	39 Underperform	£562.85K	-2.25	―	―	-59.04%	84.76%

t42 IoT Tracking Solutions PLC Corporate Events

t42 IoT Tracking Solutions Appoints New Broker

t42 IoT Tracking Solutions plc has appointed Stand House Limited as its new broker, effective immediately. This strategic move is expected to enhance the company’s market operations and strengthen its industry positioning, potentially benefiting stakeholders by improving the company’s financial advisory and brokerage services.

t42 IoT Tracking Solutions Explores Expansion in Shipping Container Tracking

t42 IoT Tracking Solutions plc has announced an update on its shipping container tracking technology, aiming to expand its offerings and explore partnerships within the freight and logistics industries. The company plans to seek potential investors to fund these initiatives through a project-level structure that will not dilute current shareholders or affect the company’s working capital. This strategy could potentially integrate t42’s products across the global shipping container sector, although there is no certainty of securing funding or finalizing agreements.