Transense Technologies PLC (TRT) AI Stock Analysis

• Market Cap: £10.35M
• Dividend Yield: N/A
• Average Volume (3M): 42.88K
• Price to Earnings (P/E): 1308.0
• Beta (1Y): 0.37
• Revenue Growth: 32.78%
• EPS Growth: -8.69%
• Country: UK
• Employees: 19
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.00
• Shares Outstanding: 15,219,884
• 10 Day Avg. Volume: 10,654
• 30 Day Avg. Volume: 42,876
• PEG Ratio: -2.33
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 4.42
• P/FCF Ratio: 20.30
• 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): 0.08
• Revenue Forecast (FY): £6.50M

• Rating: 65 Neutral
• Price Target: 70.00p ▼(-48.15% Downside)
• Action: Downgraded Date: 01/31/26
• Date: Action: Downgraded 01/31/26

The score is supported by strong financial performance (growth, high gross margin, improving free cash flow, and very low leverage), but it is materially dragged down by very weak technical momentum (price well below key moving averages and extremely low RSI/Stoch). Valuation (P/E 12.16) is a modest positive.

Positive Factors

Revenue Growth

Sustained revenue growth of ~15% indicates durable demand for Transense’s sensing and inspection products across automotive and industrial end markets. Growth supports reinvestment in R&D and sales, helps scale fixed-cost absorption, and validates product-market fit over the medium term.

Very High Gross Margin

Exceptionally high gross margin points to proprietary hardware/software and pricing power in niche sensing and inspection markets. High product-level margins provide a durable buffer against input cost inflation and enable profitable scaling as sales grow, supporting long-term operating leverage.

Strong Balance Sheet & Cash Generation

Very low leverage and a high equity ratio combined with substantial FCF growth and strong cash conversion indicate financial flexibility. This durable strength reduces refinancing risk, funds capex or M&A, and supports continued investment in product development and market expansion.

Negative Factors

Net Margin Compression

A meaningful drop in net margin signals rising operating costs or other non‑gross items eroding profitability. Even with high gross margins, sustained margin compression can limit free cash flow conversion, reduce reinvestment capacity, and weaken returns to shareholders if not reversed.

Negative EPS Growth

A near‑40% decline in EPS year‑over‑year indicates earnings volatility and points to profitability pressures at the bottom line. Persistent EPS declines can constrain strategic flexibility, make funding growth internally harder, and signal episodic risks to earnings sustainability.

Limited Scale / Small Headcount

A very small workforce suggests limited operational scale and potential single‑point dependencies. For capital‑intensive or contract‑driven industrial customers, small scale can constrain execution capacity, slow large contract ramp‑ups, and raise operational risk relative to larger competitors.

Transense Technologies PLC Business Overview & Revenue Model

Company Description

Transense Technologies plc is a developer of wireless sensor systems used to enable real-time data gathering and monitoring. Its products include the patent-protected Surface Acoustic Wave (SAW) sensor technology that provides real time measurement of torque, temperature, pressure, and strain, which is used to improve efficiency, performance, and safety of propulsion systems and machinery; iTrack, a tyre pressure monitoring system for off-highway machinery licensed to Bridgestone Corporation; and a range of intelligent tyre monitoring equipment under the Translogik brand. The company's target sectors include automotive, aerospace, industrial, green energy, rail, and marine. Transense Technologies plc was incorporated in 1985 and is headquatered in Bicester, the United Kingdom.

How the Company Makes Money

Transense Technologies generates revenue primarily through the sale of its proprietary sensor technologies and systems, including tire pressure monitoring systems and bespoke solutions tailored for specific industrial applications. The company earns income from direct product sales, licensing agreements, and potentially from partnerships with automotive manufacturers and other industries that integrate its technology into their products. Additionally, ongoing support and maintenance services for its technologies may contribute to recurring revenue streams. Strategic collaborations and partnerships with industry leaders are crucial for expanding its market reach and enhancing its product offerings, thereby driving further revenue growth.

Transense Technologies PLC Financial Statement Overview

Summary

Strong fundamentals: revenue grew 14.81% and gross margin is very high at 89.98%. Cash generation improved with 90.85% free cash flow growth and strong cash conversion (operating cash flow to net income of 2.22). Balance sheet risk is low with debt-to-equity of 0.05 and a high equity ratio (85.81%), though net margin fell from 37.44% to 25.37% and ROE has slightly declined.

Income Statement

Transense Technologies PLC has shown strong revenue growth with a 14.81% increase in the latest year. The company maintains high gross profit margins at 89.98%, indicating efficient cost management. However, the net profit margin decreased from 37.44% to 25.37%, suggesting increased expenses or other financial pressures. Overall, the income statement reflects robust growth and profitability, albeit with some margin compression.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.05, indicating minimal leverage and financial risk. The return on equity is healthy at 19.77%, showcasing effective use of shareholder funds. The equity ratio stands at 85.81%, reflecting a strong equity base relative to total assets. While the company is financially stable, the slight decline in ROE from previous years suggests potential areas for improvement in asset utilization.

Cash Flow

Cash flow performance is strong, with a significant 90.85% growth in free cash flow, highlighting improved cash generation. The operating cash flow to net income ratio of 2.22 indicates efficient cash conversion. However, the free cash flow to net income ratio of 0.59 suggests room for improvement in translating earnings into free cash flow. Overall, the cash flow statement reflects solid cash management and growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	5.35M	5.55M	4.18M	3.53M	2.63M	1.77M
Gross Profit	4.57M	4.99M	3.65M	3.06M	2.23M	1.39M
EBITDA	1.36M	1.82M	1.57M	1.08M	523.00K	61.00K
Net Income	862.00K	1.41M	1.56M	1.40M	877.00K	156.00K
Balance Sheet
Total Assets	8.42M	8.30M	6.46M	4.56M	3.76M	2.77M
Cash, Cash Equivalents and Short-Term Investments	1.33M	1.14M	1.28M	978.00K	1.05M	1.05M
Total Debt	1.02M	367.00K	404.00K	36.00K	107.00K	169.00K
Total Liabilities	1.24M	1.17M	897.00K	370.00K	667.00K	429.00K
Stockholders Equity	7.18M	7.12M	5.57M	4.19M	3.09M	2.34M
Cash Flow
Free Cash Flow	1.37M	1.21M	680.00K	395.00K	308.00K	-310.00K
Operating Cash Flow	2.21M	2.05M	1.56M	652.00K	408.00K	-257.00K
Investing Cash Flow	-2.37M	-2.09M	-883.00K	-257.00K	-100.00K	1.18M
Financing Cash Flow	293.00K	-99.00K	-377.00K	-472.00K	-299.00K	-1.07M

Transense Technologies PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRT, the sentiment is Negative. The current price of 135 is above the 20-day moving average (MA) of 65.41, above the 50-day MA of 100.06, and above the 200-day MA of 125.31, indicating a neutral trend. The MACD of -8.30 indicates Negative momentum. The RSI at 31.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TRT.

Transense Technologies PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABDP	73 Outperform	£286.93M	27.31	8.85%	0.63%	3.10%	23.59%
TRT	65 Neutral	£10.35M	1,307.96	22.19%	―	32.78%	-8.69%
CTA	62 Neutral	£17.66M	4.36	30.82%	―	-18.51%	-13.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AURR	52 Neutral	£78.20M	-6.75	-34.64%	―	14.08%	31.82%
AUTG	46 Neutral	£4.64M	-2.08	-11.13%	―	-15.55%	-25.85%

Transense Technologies PLC Corporate Events

Transense core units grow strongly as legacy royalties drag on interim revenue

Transense Technologies reported unaudited interim results showing 39% revenue growth in its core SAWsense and Translogik divisions to £1.25m, although total group revenue fell 8% to £2.26m due to reduced Bridgestone iTrack royalty rates and currency headwinds. The company remained cash generative, with gross margin at 90%, profit before tax near breakeven and net cash of £0.92m, while its order book and project pipeline continued to strengthen.

SAWsense delivered a 74% revenue increase to £0.66m, driven by aerospace, automotive, industrial and robotics projects, with its order book more than doubling and 23 funded projects now under way with 17 customers including GE and Airbus. Translogik grew revenue 13% to £0.59m, expanded SaaS-based tyre management deployments and reseller partnerships, launched its TLGi smart inflation product and is benefiting from impending EU rules on digital life-cycle passports, though management noted slower-than-expected customer adoption and emphasised disciplined execution on growth plans.

Executive Chairman Nigel Rogers said the company is frustrated by slower order conversion but confident in its strategy and growing opportunity pipeline, highlighting that Transense is well funded and expects cash generation to improve as new contracts ramp up. The interim figures underline a strategic shift toward building scalable, high-margin sensor and tyre data businesses that can increasingly offset declining legacy royalty income and potentially enhance long-term growth visibility for shareholders.

The most recent analyst rating on (GB:TRT) stock is a Hold with a £67.00 price target. To see the full list of analyst forecasts on Transense Technologies PLC stock, see the GB:TRT Stock Forecast page.

Transense Cuts FY26 Outlook Despite Strong Growth in Core Sensing Divisions

Transense Technologies reported that both its SAWsense and Translogik divisions are growing, but overall revenue and royalty income for the year to June 2026 are now expected to fall short of market forecasts due to slower-than-anticipated customer onboarding and a roughly 10% downgrade to expected Bridgestone iTrack royalties. The company now guides to at least £5.2m of revenue for FY26, including about £2.0m in royalties, with composite revenue growth of at least 30% from its two operating businesses and maintained gross margins, but profitability is expected to be materially below prior expectations despite being profitable and cash generative in the first half. SAWsense delivered more than 70% revenue growth in the first half and Translogik 13%, supported by a growing pipeline and new partnering opportunities, though management cites geopolitical and economic uncertainty as delaying new commitments; the board nonetheless reiterates confidence in sustainable longer-term growth as it prepares to publish interim results and present to investors in February.

The most recent analyst rating on (GB:TRT) stock is a Hold with a £138.00 price target. To see the full list of analyst forecasts on Transense Technologies PLC stock, see the GB:TRT Stock Forecast page.

Transense Technologies PLC Reports Successful AGM with All Resolutions Passed

Transense Technologies PLC announced that all resolutions were passed at its recent Annual General Meeting. This outcome reflects strong shareholder support and is expected to positively impact the company’s operations and strategic initiatives. The successful AGM underscores Transense’s robust market positioning and its ongoing commitment to delivering innovative sensing solutions to its global clientele.

The most recent analyst rating on (GB:TRT) stock is a Buy with a £140.00 price target. To see the full list of analyst forecasts on Transense Technologies PLC stock, see the GB:TRT Stock Forecast page.