Trakm8 Holdings (TRAK) AI Stock Analysis

• Market Cap: £4.42M
• Dividend Yield: N/A
• Average Volume (3M): 147.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -19.57%
• EPS Growth: -206.79%
• Country: UK
• Employees: 120
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 49,975,000
• 10 Day Avg. Volume: 17,159
• 30 Day Avg. Volume: 147,486
• PEG Ratio: -1.51
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.98
• 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

• Rating: 46 Neutral
• Price Target: ―

The overall score of 46 reflects significant challenges faced by Trakm8 Holdings. The primary concerns are the declining revenue and consistent losses, exacerbated by a recent negative corporate event revising revenue expectations downward. Additionally, technical indicators suggest bearish momentum, and the valuation points to an overvalued stock given the negative earnings. While there are some positive aspects, such as cash flow improvements, these are overshadowed by the more critical financial and market challenges.

Trakm8 Holdings Business Overview & Revenue Model

Company Description

Trakm8 Holdings PLC designs, develops, manufactures, markets, and distributes vehicle telematics equipment and services, and optimization solutions in the United Kingdom, North America, Norway, rest of Europe, and internationally. The company offers fleet management solutions, such as vehicle tracking, insight optimization, driver behavior, vehicle health, tachograph, asset tracking, trailer tracking, and first notification of loss; and route optimization and planning solutions. It also provides telematics insurance solutions; optimization solutions in the areas of transport and logistics, energy management, mobility, and electric vehicles; automotive telematics solutions, including connected care and asset management solutions; and camera integrated telematics, dash cams, FORS/CLOCS camera packages, and multi-camera systems for vehicles, as well as engineering, professional, and mapping services. Trakm8 Holdings PLC was founded in 2002 and is based in Birmingham, the United Kingdom.

How the Company Makes Money

Trakm8 Holdings makes money primarily through the sale and subscription of its telematics and fleet management products and services. The company generates revenue from hardware sales, including vehicle tracking devices, and recurring revenue from software subscriptions for their fleet management platform. Additionally, Trakm8 offers data analytics services that provide insights into driver behavior and vehicle performance, which are sold to insurance companies to help them assess risk and adjust premiums. The company also engages in partnerships and collaborations with automotive manufacturers and insurers, enhancing its market reach and revenue potential.

Trakm8 Holdings Financial Statement Overview

Summary

Trakm8 Holdings faces challenges with declining revenue and ongoing losses impacting profitability. Despite moderate leverage and improving cash flow, the company must address revenue decline and loss-making operations to improve its financial health. Stability in the balance sheet provides some reassurance amidst these challenges.

Income Statement

Trakm8 Holdings shows declining revenue over the past year, with a drop from £20.2M to £16.1M, indicating a negative revenue growth rate. Gross profit margin stands at 44.8%, indicating a reasonable level of efficiency, despite negative EBIT and net profit margins due to losses. There is a consistent pattern of negative net income, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.39, suggesting moderate leverage. Stockholders' equity has decreased, but the equity ratio remains strong at 50.7%, indicating a stable capital structure. However, declining equity and high debt levels present potential risks.

Cash Flow

Operating cash flow is positive and has grown over the years, with an operating cash flow to net income ratio indicating strong cash flow relative to net losses. Free cash flow has improved significantly, yet remains modest. This suggests good cash management but dependency on positive cash flow is necessary given the net losses.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
15.86M	16.09M	20.20M	18.11M	15.96M	19.55M
	Gross Profit
7.17M	7.21M	12.49M	11.11M	9.32M	11.56M
	EBIT
-485.00K	-514.00K	-625.00K	359.00K	-1.42M	-1.30M
	EBITDA
2.87M	2.49M	2.49M	3.37M	1.44M	1.60M
	Net Income Common Stockholders
-1.18M	-1.21M	-783.00K	187.00K	-1.24M	-1.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.67M	1.40M	1.12M	1.00M	2.37M	1.67M
	Total Assets
38.18M	35.34M	38.55M	36.85M	36.79M	38.18M
	Total Debt
9.62M	6.99M	8.04M	7.95M	9.12M	9.62M
	Net Debt
7.95M	5.59M	6.93M	6.95M	6.75M	7.95M
	Total Liabilities
17.00M	17.40M	19.42M	16.98M	16.67M	17.00M
	Stockholders Equity
21.18M	17.93M	19.13M	19.88M	20.12M	21.18M
Cash Flow		Free Cash Flow
740.00K	1.68M	895.00K	431.00K	2.07M	916.00K
	Operating Cash Flow
3.07M	5.28M	4.31M	3.81M	4.74M	4.12M
	Investing Cash Flow
-3.55M	-3.60M	-3.42M	-3.25M	-2.67M	-3.20M
	Financing Cash Flow
-41.00K	-2.19M	-780.00K	-1.92M	-1.36M	-456.00K

Trakm8 Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRAK, the sentiment is Positive. The current price of 8.85 is above the 20-day moving average (MA) of 8.77, above the 50-day MA of 5.89, and above the 200-day MA of 5.70, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 94.27 is Negative, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TRAK.

Trakm8 Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	79 Outperform	£123.01M	25.79	26.51%	1.77%	8.43%	―
SRT	66 Neutral	£173.86M	―		―	―	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
KMK	56 Neutral	£38.17M	―	-13.12%	―	-9.28%	-19.48%
TRAK	46 Neutral	£4.42M	―	-6.32%	―	-19.57%	-206.79%
PIP	44 Neutral	£453.91K	―		―	-24.40%	19.80%
TRAC		£1.25M	―		―	―	―

Trakm8 Holdings Corporate Events

Trakm8 Holdings PLC Revises FY 2025 Revenue Expectations Amid Market Challenges

Trakm8 Holdings PLC announced a trading update for the financial year ending 31 March 2025, revealing that despite strong sales in fleet telematics and optimization, a significant expected contract did not materialize, and the insurance market remains challenging. Consequently, the company anticipates a revenue decline of nearly ten percent compared to the previous year, impacting profitability.