Tracsis (TRCS) AI Stock Analysis

• Market Cap: £89.29M
• Dividend Yield: 0.8%
• Average Volume (3M): 43.48K
• Price to Earnings (P/E): 221.3
• Beta (1Y): 0.77
• Revenue Growth: 1.07%
• EPS Growth: 11.25%
• Country: UK
• Employees: 550
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 29,764,196
• 10 Day Avg. Volume: 44,032
• 30 Day Avg. Volume: 43,477
• PEG Ratio: 35.85
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 11.70
• 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): 0.28
• Revenue Forecast (FY): £83.01M

• Rating: 64 Neutral
• Price Target: 318.00 p ▲(2.58% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid financial stability and cash generation, plus supportive technical momentum. These positives are meaningfully offset by very expensive valuation (high P/E with low yield) and ongoing end-market uncertainty highlighted on the earnings call.

Positive Factors

Strong balance sheet

Conservative leverage and a healthy equity ratio provide financial resilience through sector cycles. This durable capital structure supports continued investment in SaaS product development, disciplined M&A and share buybacks, and reduces refinancing risk, strengthening long-term strategic optionality.

Improving free cash flow

Stronger free cash flow and efficient cash conversion underpin the group's ability to fund recurring product development, maintain dividends and execute buybacks without relying on external financing. Reliable cash generation supports sustainable operations and strategic investment over multiple years.

Growing recurring revenues

Expansion of multiyear, pay-as-you-go and GeoIntelligence contracts increases revenue visibility and stickiness. A growing recurring base improves predictability, enables margin scaling for SaaS offerings, and reduces dependence on one-off project timing, strengthening medium-term earnings durability.

Negative Factors

Margin erosion

Declining gross margins signal cost pressures or pricing squeeze that depress long-term profitability and ROE. With fluctuating EBIT/EBITDA margins, sustained margin deterioration would limit reinvestment capacity, slow product development, and weaken the company's ability to convert revenue growth into durable earnings.

UK rail funding uncertainty

Structural uncertainty around UK rail funding and potential renationalization can delay procurement and contract awards, reducing demand visibility for core customers. Prolonged delays materially risk timing and size of contracted work, pressuring revenue growth and the cadence of recurring contract renewals.

Hardware revenue weakness

A sharp fall in hardware sales (c.42%) removed ~£1.5m profit and highlights product-line volatility. Dependence on lumpy hardware contracts reduces margin stability and makes earnings more cyclical; sustained weakness would elevate execution risk and require faster SaaS/service migration to stabilize revenues.

Tracsis Business Overview & Revenue Model

Company Description

Tracsis plc, together with its subsidiaries, provides software and hardware products, and consultancy services for the rail industry. The company operates in two segments, Rail Technology and Services; and Data, Analytics, Consultancy & Events. The Rail Technology & Services segment provides a suite of operational software products covering timetabling, resource and rolling stock planning and optimization, real time performance and control, service recovery, retail services, incident management, retail services, and asset management; and infrastructure software services that include safety management, planning and delivery of work, remote condition monitoring and data acquisition, and asset virtualization/intelligent infrastructure/digital railway. This segment also offers transit and ticketing solutions, including passenger analytics, retail operations, and delay repay. The Data, Analytics, Consultancy & Events segment provides informatics and location analytics, which include geographical information systems, data visualization and analytics platforms, and asset management; transport data and analytics, such as passenger/traffic data collection, and traffic insights covering data visualization and data-as-a-service; and event traffic management solutions, such as event transport planning and traffic management, and integrated traffic data management and event access control. It serves transport operators, transport authorities, infrastructure operators, government agencies and local authorities, as well as event organizers in the United Kingdom, Ireland, rest of Europe, North America, and internationally. The company was incorporated in 2004 and is headquartered in Leeds, the United Kingdom.

How the Company Makes Money

Tracsis makes money primarily by selling and supporting rail/transport software and by delivering technology-enabled services to transport customers. Key revenue streams typically include: 1) Software and technology solutions (recurring and project-based) - Licensing/subscription fees for operational and planning software used by rail and transport organisations (e.g., systems that support timetable/operations planning, resource management, performance monitoring, or data-driven decision-making). - Ongoing maintenance and support contracts associated with deployed software (recurring revenue). - Implementation and configuration services for new deployments, upgrades, integrations, and customer-specific requirements (project/professional services revenue). 2) Data, analytics, and information services - Fees for access to data products, analytics platforms, and reporting tools that help customers understand operational performance, demand, and service delivery. - Service revenues from producing analyses, dashboards, and decision-support outputs for operators and transport bodies. 3) Operational support / outsourced services - Contracted services delivered to rail and transport organisations to support operations (for example, providing people, processes, and technology to help run or manage certain operational activities). Revenue is typically earned under service contracts, which may be fixed-fee, usage-based, or tied to contract scope and performance. Material factors that commonly drive earnings: - Long-term relationships with rail industry customers (train operating companies, infrastructure bodies, and transport authorities) can support repeat business via renewals, support contracts, and follow-on projects. - Revenue mix often includes both recurring components (software support/subscriptions) and non-recurring components (implementation projects and service contract work), with the balance influenced by customer procurement cycles and the timing of contract awards. null

Tracsis Financial Statement Overview

Summary

Solid overall fundamentals supported by a strong balance sheet (low leverage, healthy capital structure) and improving free cash flow. The main constraint is profitability: declining gross margin and low net margin, with fluctuating EBIT/EBITDA margins indicating operational pressure.

Income Statement

Tracsis has shown a consistent revenue growth trajectory with a notable increase in the latest year. However, the gross profit margin has decreased over the years, indicating rising costs or pricing pressures. The net profit margin remains low, suggesting limited profitability despite revenue growth. EBIT and EBITDA margins have fluctuated, reflecting operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage. Return on equity is modest, reflecting limited profitability. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects stability with low financial risk.

Cash Flow

Tracsis has demonstrated positive free cash flow growth recently, indicating improved cash generation. The operating cash flow to net income ratio suggests efficient cash conversion, although it has room for improvement. The free cash flow to net income ratio is strong, highlighting effective cash management.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	81.89M	81.02M	82.02M	68.72M	50.24M
Gross Profit	41.46M	46.01M	44.35M	37.24M	30.54M
EBITDA	10.00M	9.04M	14.96M	9.55M	10.57M
Net Income	520.00K	488.00K	6.81M	1.50M	2.36M
Balance Sheet
Total Assets	97.97M	102.81M	100.90M	105.59M	93.52M
Cash, Cash Equivalents and Short-Term Investments	23.39M	19.77M	15.31M	17.19M	25.39M
Total Debt	2.64M	1.86M	2.09M	2.77M	2.06M
Total Liabilities	32.96M	34.64M	33.13M	45.14M	36.86M
Stockholders Equity	65.01M	68.17M	67.77M	60.45M	56.66M
Cash Flow
Free Cash Flow	9.84M	6.55M	7.73M	7.06M	8.96M
Operating Cash Flow	10.51M	8.50M	9.56M	8.19M	9.36M
Investing Cash Flow	-1.78M	-2.02M	-7.49M	-14.54M	-595.00K
Financing Cash Flow	-5.14M	-2.10M	-1.99M	-2.03M	-1.20M

Tracsis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 310.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRCS, the sentiment is Negative. The current price of 310 is below the 20-day moving average (MA) of 327.13, below the 50-day MA of 319.58, and below the 200-day MA of 363.64, indicating a bearish trend. The MACD of -5.46 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TRCS.

Tracsis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	70 Outperform	£93.21M	54.18	2.93%	―	-3.95%	16.87%
AOM	68 Neutral	£151.47M	-33.80	-0.19%	―	31.86%	-115.22%
TRCS	64 Neutral	£89.29M	221.31	0.78%	0.80%	1.07%	11.25%
SAAS	63 Neutral	£76.52M	23.49	-1.09%	2.00%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPA	58 Neutral	£80.44M	-39.58	0.16%	―	5.35%	-97.78%
CKT	57 Neutral	£15.93M	-1.93	-29.25%	―	10.00%	34.02%

Tracsis Corporate Events

Tracsis Confirms Total Voting Rights at Just Under 30 Million Shares

Tracsis plc has confirmed that its issued share capital consists of 29,764,197 ordinary shares of 0.4p each, with every share carrying one voting right and no shares held in treasury. This figure sets the official total number of voting rights at 29,764,197, providing the reference denominator shareholders must use to assess whether they need to disclose new or changed holdings under FCA transparency rules, thereby supporting regulatory compliance and market transparency.

By clarifying its voting rights structure, Tracsis offers investors a clear basis for monitoring ownership thresholds and reporting obligations. The announcement reinforces good governance practices and aids stakeholders in tracking significant shareholdings, which can influence perceptions of control, liquidity, and potential future corporate actions.

The most recent analyst rating on (GB:TRCS) stock is a Buy with a £394.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis Updates Market on Staff LTIP Share Allotments and Remaining Pool

Tracsis plc has provided its latest six‑monthly block listing update for its Non‑EMI Staff Long Term Incentive Plan covering the period from 1 September 2025 to 28 February 2026. During the period, 26,537 ordinary shares were allotted under the plan, leaving 392,085 shares still available for future issuance, with no increase made to the overall block listing size and total shares in issue standing at 29,764,197.

The update confirms that the company continues to use its existing share pool to satisfy awards under the staff LTIP without expanding the authorised block, a sign of disciplined equity management that limits dilution for existing shareholders. The remaining unallotted shares under the scheme provide ongoing flexibility to reward and retain employees while maintaining transparency around potential future share issuance under AIM rules.

The most recent analyst rating on (GB:TRCS) stock is a Buy with a £394.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis Delivers Solid First Half and Wins New North American Rail Contract

Tracsis reported that trading for the first half of its 2026 financial year was in line with expectations, with revenue expected to rise to about £39m from £36.3m and adjusted EBITDA to about £5m from £3.8m. Both of its divisions delivered revenue and margin growth driven by higher recurring licence income and consumer-driven transactional revenues, while the group maintained a strong balance sheet with net cash of £25.8m.

The company also secured a new multi-year contract in North America to deploy its Train Dispatch software for a shortline freight railroad, building on an earlier U.S. commuter rail implementation and reinforcing its international diversification strategy. The deal underpins current-year project revenue and is expected to generate recurring support and maintenance income after full deployment in FY27, supporting unchanged full-year guidance and strengthening Tracsis’ positioning in rail technology despite subdued UK hardware volumes and prolonged procurement cycles.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £373.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis Confirms Total Voting Rights at 29.76 Million Shares

Tracsis plc has confirmed that, as of 2 February 2026, it has 29,762,822 ordinary shares of 0.4p in issue, with no shares held in treasury, and each share carrying one voting right. This establishes the company’s total voting rights at 29,762,822, a figure that shareholders and investors will use as the denominator when assessing whether they must disclose holdings or changes in their interests under UK transparency regulations, ensuring clarity around Tracsis’s capital structure and regulatory reporting obligations.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £373.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis Shareholders Approve All Resolutions at Annual General Meeting

Tracsis plc reported that all resolutions put to shareholders at its 14 January 2026 annual general meeting were approved, with around 65% of the issued share capital voting. Shareholders backed the company’s report and accounts, remuneration report, auditor reappointment and fees, director reappointments, a final dividend, and authorities to allot shares, disapply pre-emption rights and make market purchases, signalling continued investor support for the board and its capital allocation flexibility despite a notable minority vote against director Jill Easterbrook and pre-emption waivers.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £334.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis Confirms Total Voting Rights and Share Capital Structure

Tracsis plc has confirmed that, as of 2 January 2026, it has 29,756,521 ordinary shares of 0.4p each in issue, with no shares held in treasury and each share carrying one voting right. The company has clarified that this figure represents the total number of voting rights currently in circulation and should be used by shareholders as the reference denominator when assessing whether they must disclose any holdings or changes in their interest under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, reinforcing transparency around its share capital structure.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £340.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.