Tracsis PLC (GB:TRCS)
LSE:TRCS
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Tracsis
(LSE:TRCS)
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Rating:64Neutral
Price Target:
345.00 p
▲(11.29% Upside)
Action:ReiteratedDate: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
Balance sheet strength
A strong cash position and an undrawn £35m revolving facility provide durable liquidity and financial flexibility. This supports investment in SaaS product development, disciplined buybacks, and shields operations from sector funding volatility, improving resilience over 2-6 months.
Negative Factors
Margin pressure
Declining gross margins and persistently low net margins suggest cost inflation or pricing pressure in core services. This constrains the group's ability to convert revenue growth into sustained profits and limits reinvestment capacity and return on equity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A strong cash position and an undrawn £35m revolving facility provide durable liquidity and financial flexibility. This supports investment in SaaS product development, disciplined buybacks, and shields operations from sector funding volatility, improving resilience over 2-6 months.
Read all positive factors
Tracsis (TRCS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£105.70M
Dividend Yield0.8%
Average Volume (3M)43.48K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth1.07%
EPS Growth7.50%
CountryUK
Employees550
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding29,775,024
10 Day Avg. Volume44,032
30 Day Avg. Volume43,477
Financial Highlights & Ratios
PEG Ratio35.85
Price to Book (P/B)1.77
Price to Sales (P/S)1.41
P/FCF Ratio11.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£550.00Price Target Upside77.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.28
Revenue Forecast (FY)£83.39M
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. Th...
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 proj...
Tracsis Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a strong recovery in the second half of the year, with notable improvements in profitability and strategic growth in recurring revenues and contracts. However, challenges remain in the U.K. rail sector and North American market penetration. Despite some headwinds, the overall outlook is optimistic with a focus on long-term growth strategies.Positive Updates
Improved Second Half Performance
The company's performance improved in the second half of FY '25, aligning with the revised guidance from April. This includes resolving profitability issues in Traffic Data & Events and entering the new financial year in a stronger position.
Negative Updates
Continued Uncertainty in U.K. Rail
Uncertainty in U.K. rail is expected to persist through FY '26, with constraints from Control Period 7 funding and impacts from proposed renationalization affecting procurement timelines.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Second Half Performance
The company's performance improved in the second half of FY '25, aligning with the revised guidance from April. This includes resolving profitability issues in Traffic Data & Events and entering the new financial year in a stronger position.
Read all positive updates
Company Guidance
During the Tracsis Plc Final Results Investor Presentation, CEO David Frost and CFO Andy Kelly provided detailed guidance and performance metrics for FY '25 while outlining strategic directions for FY '26. The company achieved a 1% increase in total group revenue to GBP 81.9 million and an adjusted EBITDA of GBP 12.6 million, despite facing headwinds in the U.K. rail market, specifically a 42% decline in Remote Condition Monitoring hardware revenue. Recurring and transactional revenues grew by 8%, and the company ended the year with GBP 23.4 million in cash after completing a GBP 3 million share buyback. Tracsis maintained a progressive dividend policy with a final dividend of 1.4p per share, marking an 8% increase. The leadership underscored ongoing investments in SaaS-native products and international market expansion, particularly in North America, while maintaining a focus on organic growth and disciplined M&A strategies. The outlook for FY '26 remains consistent with market expectations, factoring in continued uncertainty in the U.K. rail sector.Tracsis Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
| 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
Positive
310.00
Price Trends
317.85
Positive
316.81
Positive
347.93
Negative
Market Momentum
2.18
Negative
56.85
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRCS, the sentiment is Positive. The current price of 310 is above the 20-day moving average (MA) of 308.13, below the 50-day MA of 317.85, and below the 200-day MA of 347.93, indicating a neutral trend. The MACD of 2.18 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TRCS.
Tracsis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £151.83M | -33.80 | -2.11% | ― | 31.86% | -115.22% | |
66 Neutral | £86.49M | 4.25 | 5.57% | ― | -1.34% | 27.45% | |
64 Neutral | £105.70M | ― | 0.80% | 0.80% | 1.07% | 7.50% | |
63 Neutral | £71.31M | 23.49 | -1.09% | 2.00% | 9.69% | -319.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | £86.67M | -39.58 | 0.16% | ― | 5.35% | -97.78% | |
54 Neutral | £27.00M | -7.12 | -29.25% | ― | -2.84% | 22.22% |
* Technology Sector Average
GB:TRCS
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Tracsis Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Tracsis boosts earnings and software-led growth as it deepens rail technology push
Positive
Apr 28, 2026
Tracsis reported a stronger first half for the six months to 31 January 2026, with revenue up 7% to £38.9m and adjusted EBITDA rising 31% to £5m, lifting margins and diluted adjusted earnings per share by 34%. While statutory results hov...
Business Operations and StrategyM&A Transactions
Tracsis Buys German Ticketing Firm Vesputi to Expand Digital Rail Offering
Positive
Apr 2, 2026
Tracsis has acquired Vesputi, a German digital ticketing technology specialist, in a bolt-on deal that broadens its smart ticketing offering and gives it an operational foothold in Germany’s public transport market. Vesputi’s Mobilityb...
Regulatory Filings and Compliance
Tracsis Confirms Total Voting Rights at 29.77 Million Shares
Neutral
Apr 1, 2026
Tracsis plc announced that as of 1 April 2026 it has 29,770,598 ordinary shares of 0.4 pence each in issue, with every share carrying one voting right and no shares held in treasury. This figure sets the official total number of voting rights in t...
Business Operations and StrategyFinancial Disclosures
Tracsis Sets Date for Interim Results and Investor Presentations
Neutral
Mar 27, 2026
Tracsis plc, the London-listed transport technology group, will report interim results for the six months to 31 January 2026 on 28 April, underscoring its role as a key provider of software, hardware, and analytics to rail and wider transport mark...
Regulatory Filings and Compliance
Tracsis Confirms Total Voting Rights at Just Under 30 Million Shares
Positive
Mar 2, 2026
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 ...
Business Operations and StrategyRegulatory Filings and Compliance
Tracsis Updates Market on Staff LTIP Share Allotments and Remaining Pool
Positive
Mar 2, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
Tracsis Delivers Solid First Half and Wins New North American Rail Contract
Positive
Feb 25, 2026
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 divisio...
Regulatory Filings and Compliance
Tracsis Confirms Total Voting Rights at 29.76 Million Shares
Neutral
Feb 2, 2026
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 29,76...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.