Tribal Group plc (TRB) AI Stock Analysis

• Market Cap: £151.05M
• Dividend Yield: 1.71%
• Average Volume (3M): 193.33K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.80
• Revenue Growth: 3.48%
• EPS Growth: 318.89%
• Country: UK
• Employees: 867
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 214,379,900
• 10 Day Avg. Volume: 56,875
• 30 Day Avg. Volume: 193,332
• PEG Ratio: 4.46
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 12.37
• 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: 70 Outperform
• Price Target: 78.00p ▲(15.56% Upside)

Tribal Group plc's overall stock score reflects its strong financial performance and positive corporate events, which are offset by neutral technical indicators and fair valuation. The company's solid financial base and strategic management incentives position it well for future growth, though operational efficiency and liquidity should be monitored.

Positive Factors

Recurring revenue mix

Tribal's mix of software licenses, subscriptions and consultancy creates recurring and diversified revenue streams. Recurring contracts increase revenue visibility, support higher lifetime value, enable predictable cash flows and provide cross-sell opportunities across institutions over multi-year horizons.

Low financial leverage

Debt-to-equity of 0.19 and an equity ratio of 45.52% indicate a conservative capital structure. Low leverage preserves borrowing capacity for strategic investments or M&A, reduces bankruptcy risk and gives management flexibility to fund product development or absorb sector funding cycles without stressing the balance sheet.

Strong cash generation

Operating cash flow conversion well above net income and a positive free cash flow swing show robust cash generation. This enhances the company's ability to fund recurring product development, support implementation services, sustain dividends or incentives, and withstand timing fluctuations in project-driven revenues.

Negative Factors

Compressed EBIT margin

A decline in EBIT margin to 7.66% despite revenue growth suggests rising operating costs or less efficient service delivery. Persistently lower operating profitability would limit reinvestment into product R&D and weaken the margin leverage that software businesses typically rely on as they scale.

Reduced cash reserves / liquidity

Noted decreases in cash balances and prior substantial capital expenditures tighten short-term liquidity headroom. For an implementation-heavy software services provider, lower cash reserves can increase reliance on external financing for project delivery, constraining flexibility to invest or absorb delayed client payments.

Concentration in education sector

A business model concentrated on higher-education software and consultancy concentrates exposure to institutional budgets, policy changes and sector-specific adoption cycles. This structural concentration raises sensitivity to public funding shifts and slower digital spending trends versus more diversified enterprise software peers.

Tribal Group plc Business Overview & Revenue Model

Company Description

Tribal Group plc, through its subsidiaries, provides education related systems, solutions, and consultancy services in the United Kingdom, Australia, other Asia Pacific, North America, and internationally. It operates in two segments, Student Information Systems (SIS) and Education Services (ES). The SIS segment offers software, and maintenance and support services; and deploys and configures software solutions, asset management, and information managed services for its customers. The ES segment offers inspection and review services that support the assessment of educational delivery, as well as a portfolio of performance improvement tools and services, including analytics. The company serves higher education, further education, vocational institutions, colleges, training providers, employers, and school sectors, as well as government and state bodies. Tribal Group plc was founded in 1999 and is based in Bristol, the United Kingdom.

How the Company Makes Money

Tribal Group generates revenue through the sale of software licenses, subscription services, and consultancy fees. The company's primary revenue streams include the licensing of its software products to educational institutions, which often involves upfront fees as well as recurring maintenance and support charges. Additionally, Tribal offers consultancy services that assist institutions in implementing their software solutions and optimizing their operational processes, generating further income. The company also benefits from strategic partnerships with educational organizations and technology firms, which can enhance its market reach and provide additional revenue opportunities through collaborative projects.

Tribal Group plc Financial Statement Overview

Summary

Tribal Group plc exhibits solid financial performance with consistent revenue growth and strong cash flow generation. The company's low leverage and solid equity base contribute to its financial stability. However, slightly declining EBIT margins and reduced cash reserves highlight areas for improvement.

Income Statement

Tribal Group plc has shown a consistent increase in revenue over the past years, with a revenue growth rate of 4.97% from 2023 to 2024. The gross profit margin stands at 48.33% for 2024, reflecting effective cost management. The net profit margin improved to 6.10%, indicating enhanced profitability. However, the EBIT margin decreased slightly to 7.66%, suggesting a slight dip in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.19 in 2024 signifies a low level of leverage, which is a positive sign of financial stability. The return on equity (ROE) is 10.66%, showcasing decent profitability relative to shareholder equity. The equity ratio is 45.52%, indicating a solid equity base. However, the decrease in cash and cash equivalents may pose liquidity challenges.

Cash Flow

The operating cash flow to net income ratio is strong at 2.32, demonstrating robust cash generation relative to profits. The free cash flow growth rate is noteworthy, turning positive in 2024, which signals improved financial health and potential for reinvestment. However, the substantial capital expenditures in previous years could impact future cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.35M	90.01M	85.75M	83.58M	81.15M	72.95M
Gross Profit	43.41M	42.53M	41.39M	31.34M	41.81M	38.63M
EBITDA	15.06M	11.22M	11.24M	4.87M	12.45M	12.93M
Net Income	8.05M	5.49M	5.29M	-510.00K	6.99M	6.36M
Balance Sheet
Total Assets	107.09M	113.07M	113.64M	103.07M	97.35M	85.03M
Cash, Cash Equivalents and Short-Term Investments	4.16M	5.29M	6.80M	2.89M	5.92M	9.52M
Total Debt	9.11M	9.61M	16.03M	7.73M	2.33M	3.57M
Total Liabilities	52.14M	61.60M	65.16M	58.25M	51.01M	46.81M
Stockholders Equity	54.96M	51.47M	48.48M	44.82M	46.34M	37.63M
Cash Flow
Free Cash Flow	12.05M	8.01M	-1.35M	-4.98M	3.10M	-2.02M
Operating Cash Flow	12.48M	12.71M	7.51M	6.11M	13.89M	5.46M
Investing Cash Flow	-4.07M	-4.68M	-8.71M	-12.03M	-16.91M	-9.17M
Financing Cash Flow	-6.18M	-9.22M	5.35M	2.85M	-406.00K	-3.27M

Tribal Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRB, the sentiment is Positive. The current price of 67.5 is below the 20-day moving average (MA) of 70.40, above the 50-day MA of 66.09, and above the 200-day MA of 54.71, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 59.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TRB.

Tribal Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	70 Outperform	£151.05M	18.70	15.34%	1.71%	3.48%	318.89%
KNOS	70 Outperform	£1.07B	35.77	23.28%	2.85%	2.15%	-39.26%
SKL	69 Neutral	£68.54M	62.70	17.89%	0.77%	14.64%	916.67%
NET	68 Neutral	£225.04M	53.88	9.59%	0.80%	22.80%	-32.13%
IDOX	66 Neutral	£322.84M	51.68	8.06%	1.04%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RM	46 Neutral	£101.76M	-68.63	-3.40%	―	-14.23%	97.27%

Tribal Group plc Corporate Events

Tribal Group Swings to Net Cash as SaaS Push Drives Strong 2025

Tribal Group reported a strong finish to 2025, with revenue and adjusted EBITDA expected to come in slightly ahead of upgraded market expectations and a marked swing from net debt to a net cash position of £11.4m, signalling improved profitability, lower capex and stronger cash generation. Demand for its Student Information Solutions remained robust, supported by key go-lives at major UK universities and an improved contribution from its Etio education services unit, while Annual Recurring Revenue rose 11% to £63.3m and contracted ARR grew 14% to £65m, driven by new wins, upgrades and rollout of its Higher Education Full-Service subscription licence. The successful adoption of this subscription model across a large proportion of higher education customers is enhancing revenue visibility, margin resilience and cash flow, and is helping to accelerate cloud migration, leaving the group with a strengthened balance sheet and a solid base of long-term relationships. Against a backdrop of financial pressure on the higher education sector that is increasing demand for secure, cost-effective digital transformation, the board expects continued SaaS momentum and now anticipates adjusted EBITDA and cash performance in 2026 ahead of current market expectations.

The most recent analyst rating on (GB:TRB) stock is a Buy with a £75.00 price target. To see the full list of analyst forecasts on Tribal Group plc stock, see the GB:TRB Stock Forecast page.

Tribal Group Exceeds Financial Expectations and Strengthens Market Position

Tribal Group plc has announced a strong financial performance for the year ending December 2025, driven by its Student Information Solutions division and growth in Etio. The company expects to exceed market expectations for revenue and adjusted EBITDA, resulting in a significant improvement in its cash position, transitioning from a net debt of £3.2 million to a net cash position of at least £5 million. This financial strength has enabled Tribal to declare a special dividend and further solidify its recurring revenue model through the successful roll-out of its subscription pricing model for higher education customers. This positions Tribal well for sustained growth and continued momentum in transforming into a full-service SaaS business.

The most recent analyst rating on (GB:TRB) stock is a Buy with a £69.00 price target. To see the full list of analyst forecasts on Tribal Group plc stock, see the GB:TRB Stock Forecast page.

Tribal Group Announces Total Voting Rights Update

Tribal Group plc has announced that its issued share capital consists of 214,379,896 ordinary shares with voting rights, as per the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. This update is crucial for shareholders to determine their interest in the company’s share capital, reflecting Tribal’s commitment to transparency and regulatory compliance in the international education market.

The most recent analyst rating on (GB:TRB) stock is a Buy with a £69.00 price target. To see the full list of analyst forecasts on Tribal Group plc stock, see the GB:TRB Stock Forecast page.