Tracsis (TRCS) AI Stock Analysis

• Market Cap: £110.12M
• Dividend Yield: 0.8%
• Average Volume (3M): 43.48K
• Price to Earnings (P/E): 215.1
• Beta (1Y): 0.55
• 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: 29,762,821
• 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): £83.00M

• Rating: 64 Neutral
• Price Target: 380.00p ▲(22.58% 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

Low leverage and a healthy equity ratio give Tracsis financial flexibility to fund SaaS product development, strategic M&A and absorb sector shocks. Over the next several months this stability supports disciplined investment and keeps borrowing optional amid uncertain procurement cycles.

Growing recurring revenues

Expansion of recurring and multiyear contracts increases revenue visibility and lowers churn risk. A higher share of pay-as-you-go and GeoIntelligence contracts supports predictable cash flows, improves customer lifetime value, and underpins margin resilience as SaaS adoption scales.

Positive free cash flow

Recent positive free cash flow growth and efficient cash conversion sustain internal funding for R&D, dividends and buybacks without material leverage. Over 2-6 months this cash generation reduces refinancing risk and enables continued investment in next‑gen platforms and international expansion.

Negative Factors

Low and pressured margins

Declining gross margins and persistently low net margins point to structural cost or pricing pressure in core offerings. Over time this constrains profitability and return on equity, limiting the company’s ability to reinvest or absorb shocks without improving pricing power or operational efficiency.

U.K. rail sector uncertainty

Ongoing funding and procurement uncertainty in U.K. rail can depress demand and extend sales cycles, delaying large contract awards and hardware purchases. Structurally this can reduce near-term revenue visibility and slow adoption of new platforms while customers await clearer funding timelines.

Hardware revenue volatility

A 42% drop in remote monitoring hardware revenue, reducing profit by ~£1.5m, highlights product‑mix and demand volatility. If hardware remains cyclical, overall revenue and margins will be more variable until SaaS and services scale sufficiently to offset hardware swings and stabilize earnings.

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 generates revenue through multiple streams, primarily from the sale of software licenses, consultancy services, and data analytics solutions. The company charges clients for software products that help manage and optimize transportation operations, which can include one-time license fees as well as ongoing subscription fees for software maintenance and updates. Additionally, Tracsis earns revenue from consultancy projects where they provide tailored advice and solutions to improve operational performance for clients in the rail and highways sectors. Significant partnerships with key players in the transportation industry enhance their credibility and expand their market reach, contributing to their overall earnings. The company also benefits from long-term contracts with clients that provide a steady income stream, particularly in public transport sectors where demand for efficiency and reliability is high.

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: Positive
• Last Price: 310.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 328.25, below the 50-day MA of 315.15, and below the 200-day MA of 371.47, indicating a neutral trend. The MACD of 9.19 indicates Negative momentum. The RSI at 74.28 is Negative, neither overbought nor oversold. The STOCH value of 84.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£101.75M	14.02	5.30%	―	-3.95%	16.87%
AOM	68 Neutral	£187.20M	-935.71	-2.20%	―	31.86%	-115.22%
TRCS	64 Neutral	£110.12M	215.12	0.78%	0.80%	1.07%	11.25%
SAAS	63 Neutral	£88.12M	-111.76	-1.08%	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	2,400.00	0.15%	―	5.35%	-97.78%
CKT	57 Neutral	£18.90M	-6.10	-29.25%	―	10.00%	34.02%

Tracsis Corporate Events

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.

Tracsis Releases Annual Report and Schedules AGM

Tracsis plc has announced the release of its Annual Report and Accounts for the fiscal year ending 31 July 2025, along with the Notice of Meeting for its upcoming Annual General Meeting. The AGM is scheduled to take place on 14 January 2026 in Leeds. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £418.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.

Tracsis PLC Announces Total Voting Rights

Tracsis PLC has announced that the total number of ordinary shares in the company is 29,749,061, with each share granting one voting right. This figure is relevant for shareholders to calculate their interests or changes in the company’s share capital as per the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:TRCS) stock is a Hold with a £418.00 price target. To see the full list of analyst forecasts on Tracsis stock, see the GB:TRCS Stock Forecast page.