Touchstar (TST) AI Stock Analysis

• Market Cap: £4.55M
• Dividend Yield: 5.42%
• Average Volume (3M): 8.42K
• Price to Earnings (P/E): 133.7
• Beta (1Y): -0.01
• Revenue Growth: 0.09%
• EPS Growth: -94.11%
• Country: UK
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.01
• Shares Outstanding: 7,921,494
• 10 Day Avg. Volume: 6,954
• 30 Day Avg. Volume: 8,419
• PEG Ratio: -0.51
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 7.66
• 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: 68 Neutral
• Price Target: 63.00p ▲(5.00% Upside)

Touchstar's overall stock score is driven by its strong financial position and positive corporate actions like the share buyback. However, the high P/E ratio and mixed technical indicators suggest caution. The company should focus on improving profitability and revenue growth to enhance its valuation.

Positive Factors

Strong cash flow generation

Touchstar's exceptional free cash flow expansion and high operating-cash-to-net-income ratios indicate durable cash conversion. This sustains capital allocation (capex, R&D, buybacks, dividends), reduces reliance on external funding, and provides a buffer to absorb cyclical revenue or margin pressures over the next several months.

Low leverage and solid equity base

A very low debt-to-equity ratio and healthy equity ratio give Touchstar financial flexibility to pursue organic growth or opportunistic M&A without stress. A mid-teens ROE (10.7%) suggests the company generates acceptable returns on equity, supporting sustainable shareholder value creation and downside protection.

Recurring subscription model and partnerships

Touchstar's recurring SaaS/subscription revenue, maintenance contracts and services create predictable cashflows and customer stickiness. Partnerships with telecom providers and integrators extend distribution and bundling opportunities, supporting steady revenue streams and cross-sell potential over the medium term.

Negative Factors

Eroding operating and net margins

Margins have declined materially across EBIT and net profit, indicating rising costs, pricing pressure, or unfavorable business mix. If persistent, lower operating profitability will constrain retained earnings, reduce reinvestment capacity, and make long-term growth more dependent on cost control or price recovery rather than top-line expansion.

Sharp EPS contraction

A near-total EPS decline signals significant pressure on bottom-line performance versus the prior period. Over a multi-month horizon this hampers dividend sustainability and limits flexibility for shareholder returns. Restoring EPS will require margin improvement or revenue recovery to be durable.

Small scale and limited staffing

A 56-person workforce suggests constrained scale for product development, sales expansion, and large enterprise implementations. Over the medium term, limited human capital can slow new product rollouts, reduce competitive response speed, and require higher investment to scale operations versus larger peers.

Touchstar Business Overview & Revenue Model

Company Description

Touchstar plc, together with its subsidiaries, designs and builds rugged mobile computing devices under the Touchstar brand in the United Kingdom, Europe, and internationally. It also supplies, installs, and maintains software applications and hardware solutions for mobile applications in the transport, logistics, and access control industries. In addition, the company offers supply chain data capture solutions; GPS satellite tracking and vehicle telematics data; software and hardware for the oil and gas logistics sector; products for security checking clearance and recording attendance; and PODStar, an EPOD solution for SMEs and other organizations. The company was formerly known as Belgravium Technologies plc and changed its name to Touchstar plc in May 2016. Touchstar plc was incorporated in 1904 and is based in Manchester, the United Kingdom.

How the Company Makes Money

Touchstar generates revenue primarily through the sale of its software licenses and subscription services. Its core revenue model includes monthly subscription fees for cloud-based services, one-time fees for software licenses, and maintenance contracts. Additionally, Touchstar benefits from professional services such as consulting, implementation, and training, which contribute significantly to its earnings. The company has established partnerships with telecommunications providers and software integrators, which help expand its market reach and enhance its solution offerings, creating additional revenue opportunities through bundled services and co-marketing initiatives.

Touchstar Financial Statement Overview

Summary

Touchstar is in a solid financial position with strong cash flow and a healthy balance sheet. The income statement presents challenges with declining margins and revenue; however, the company's low debt levels and high cash flow generation offset these concerns. Focus should be on improving net profitability and revenue growth.

Income Statement

Touchstar showed a mixed performance in its income statement. The gross profit margin for the latest year is 48.9%, indicating strong profitability from its core operations. However, the net profit margin has decreased to 5.3% from 8.8% the previous year, showing a decline in net profitability. Revenue slightly dropped by 4.6% from the previous year, which is a concern. The EBIT margin was at 4.7%, down from 8.3%, and the EBITDA margin was 17.1%, also showing a decrease from 19.7%. Overall, the company demonstrates a solid gross margin but faces challenges in maintaining its net and operating margins.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.05, indicating low leverage risk. The return on equity stands at 10.7%, which is a good return for the shareholders. The equity ratio is 46.9%, which denotes a strong equity position relative to total assets. The company has maintained a stable financial position with manageable liabilities and a robust equity base.

Cash Flow

Touchstar's cash flow analysis indicates strong liquidity and cash generation capability. The free cash flow grew significantly by 1538.7% compared to the previous year, highlighting efficient cash management and operational effectiveness. The operating cash flow to net income ratio is high at 3.02, suggesting robust cash earnings relative to accounting profits. The free cash flow to net income ratio of 2.78 further supports strong cash flow generation. These metrics indicate the company is well-positioned in terms of cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.88M	6.89M	7.22M	6.74M	6.10M	5.89M
Gross Profit	3.60M	3.37M	4.29M	3.27M	2.79M	2.24M
EBITDA	460.00K	1.18M	1.42M	1.33M	1.07M	856.00K
Net Income	36.00K	366.00K	639.00K	558.00K	341.00K	87.00K
Balance Sheet
Total Assets	6.83M	7.32M	6.82M	7.95M	7.78M	7.02M
Cash, Cash Equivalents and Short-Term Investments	2.00M	2.92M	3.00M	4.46M	3.90M	3.18M
Total Debt	597.00K	165.00K	211.00K	1.28M	1.93M	1.92M
Total Liabilities	3.51M	3.88M	3.56M	5.01M	5.45M	5.05M
Stockholders Equity	3.32M	3.44M	3.26M	2.93M	2.33M	1.98M
Cash Flow
Free Cash Flow	1.36M	1.02M	62.00K	1.28M	791.00K	1.10M
Operating Cash Flow	1.41M	1.11M	662.00K	1.90M	1.30M	1.56M
Investing Cash Flow	-724.00K	-773.00K	-600.00K	-625.00K	-510.00K	-459.00K
Financing Cash Flow	-430.00K	-420.00K	-533.00K	-315.00K	-197.00K	-32.00K

Touchstar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TST, the sentiment is Negative. The current price of 60 is below the 20-day moving average (MA) of 61.03, below the 50-day MA of 66.15, and below the 200-day MA of 77.86, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 18.97 is Positive, neither overbought nor oversold. The STOCH value of 23.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TST.

Touchstar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TST	68 Neutral	£4.55M	133.72	1.05%	5.42%	0.09%	-94.11%
NET	68 Neutral	£215.66M	51.63	9.59%	0.80%	22.80%	-32.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GETB	60 Neutral	£40.05M	231.82	―	―	1.73%	-68.87%
TIDE	58 Neutral	£5.59M	―	―	―	―	―
CKT	57 Neutral	£19.98M	-6.45	-29.25%	―	10.00%	34.02%
PCIP	56 Neutral	£40.94M	941.67	―	―	25.15%	―

Touchstar Corporate Events

Touchstar CEO Increases Stake with Purchase of Additional Shares

Touchstar plc has disclosed that its chief executive officer, Lynden Jones, purchased 10,000 ordinary shares in the company on 22 January 2026 at an average price of 65.6 pence per share, increasing his holding to 17,804 shares, or about 0.2% of the company’s issued share capital. The director dealing underscores executive confidence in the business and will be closely watched by investors as a signal of management’s view on Touchstar’s current valuation and longer-term prospects within the industrial logistics technology market.

The most recent analyst rating on (GB:TST) stock is a Hold with a £68.00 price target. To see the full list of analyst forecasts on Touchstar stock, see the GB:TST Stock Forecast page.

Touchstar CEO Increases Stake with Purchase of Additional Shares

Touchstar plc reported that its chief executive officer, Lynden Jones, has purchased 7,804 ordinary shares in the company at an average price of 62 pence per share, giving him a holding of 7,804 shares, or about 0.01% of the issued share capital. While the stake remains small in percentage terms, the director dealing signals personal financial commitment from the CEO and may be interpreted by investors as a vote of confidence in the company’s prospects and current valuation.

The most recent analyst rating on (GB:TST) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Touchstar stock, see the GB:TST Stock Forecast page.

Touchstar PLC Announces Restructuring Amid Economic Challenges

Touchstar PLC has announced a trading update for the fiscal year ending December 2025, revealing that revenue is expected to fall below market expectations due to economic softness and customer hesitancy. Despite this, the company has undergone significant restructuring under a new CEO, aiming to strengthen its foundations and drive sustainable growth. Exceptional costs related to management reorganization and changes in software development cost treatment have impacted profitability. Looking forward, Touchstar plans to reposition its business, enhance sales capabilities, and explore acquisition opportunities, with modest revenue growth anticipated in 2026 and a more substantial increase expected in subsequent years.

The most recent analyst rating on (GB:TST) stock is a Hold with a £85.00 price target. To see the full list of analyst forecasts on Touchstar stock, see the GB:TST Stock Forecast page.