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Touchstar plc (GB:TST)
:TST
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Touchstar (TST) AI Stock Analysis

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GB:TST

Touchstar

(LSE:TST)

Rating:81Outperform
Price Target:
104.00p
▲(15.56% Upside)
Touchstar's strong financial position, positive technical momentum, and strategic corporate actions such as share buybacks contribute to a robust overall stock score. While the valuation is modest, the company's solid cash flow and market strategy provide a strong foundation for future growth.

Touchstar (TST) vs. iShares MSCI United Kingdom ETF (EWC)

Touchstar Business Overview & Revenue Model

Company DescriptionTouchstar (TST) is a technology company specializing in advanced communication solutions, primarily focusing on providing software and hardware systems for contact centers and telecommunication services. The company operates in the telecommunications sector, offering products such as predictive dialers, call center management software, and customer relationship management (CRM) solutions. Touchstar aims to enhance operational efficiency and customer engagement for businesses across various industries by leveraging innovative technology and data analytics.
How the Company Makes MoneyTouchstar generates revenue through multiple streams, primarily from the sale and licensing of its software solutions and hardware products. The company charges clients for the initial purchase and ongoing maintenance of its systems. A significant portion of revenue also comes from subscription-based models for its software-as-a-service (SaaS) offerings, allowing customers to pay a recurring fee for continuous access to its products. Additionally, Touchstar benefits from strategic partnerships with other technology providers, enabling it to bundle services and expand its market reach. Training and support services further contribute to its income, as clients often require assistance in optimizing their use of the technology.

Touchstar Financial Statement Overview

Summary
Touchstar demonstrates a strong balance sheet with low debt and high cash flow generation, despite declining margins and revenue in the income statement. The company's robust cash position offsets some financial performance concerns.
Income Statement
75
Positive
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
80
Positive
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
85
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.89M7.22M6.74M6.10M5.89M
Gross Profit3.37M4.29M3.27M2.79M2.24M
EBITDA1.18M1.42M1.33M1.02M856.00K
Net Income366.00K639.00K558.00K341.00K87.00K
Balance Sheet
Total Assets7.32M6.82M7.95M7.78M7.02M
Cash, Cash Equivalents and Short-Term Investments2.92M3.00M4.46M3.90M3.18M
Total Debt165.00K211.00K1.28M1.93M1.92M
Total Liabilities3.88M3.56M5.01M5.45M5.05M
Stockholders Equity3.44M3.26M2.93M2.33M1.98M
Cash Flow
Free Cash Flow1.02M62.00K1.28M791.00K1.10M
Operating Cash Flow1.11M662.00K1.90M1.30M1.56M
Investing Cash Flow-773.00K-600.00K-625.00K-510.00K-459.00K
Financing Cash Flow-420.00K-533.00K-315.00K-197.00K-32.00K

Touchstar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price90.00
Price Trends
50DMA
88.71
Positive
100DMA
84.50
Positive
200DMA
85.34
Positive
Market Momentum
MACD
0.37
Positive
RSI
61.92
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TST, the sentiment is Positive. The current price of 90 is below the 20-day moving average (MA) of 90.05, above the 50-day MA of 88.71, and above the 200-day MA of 85.34, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TST.

Touchstar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£7.35M20.1810.93%3.33%-4.58%-42.65%
70
Outperform
£162.13M34.1512.72%1.13%27.38%10.24%
65
Neutral
£43.72M197.300.50%5.07%-26.16%-99.62%
62
Neutral
£500.82M27.120.85%2.82%3.88%-21.07%
58
Neutral
£4.27M-1.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TST
Touchstar
90.00
-6.97
-7.19%
GB:NXQ
Quixant
73.00
-13.91
-16.01%
GB:CNC
Concurrent Technologies
186.50
69.16
58.94%
GB:TIDE
Crimson Tide
65.00
-85.00
-56.67%

Touchstar Corporate Events

Stock Buyback
Touchstar plc Executes Share Buyback Programme
Neutral
Aug 11, 2025

Touchstar plc has repurchased 4,458 ordinary shares as part of its ongoing share buyback programme announced in June 2025. This transaction, executed through Zeus Capital Limited, maintains the company’s issued share capital at 8,475,077, with 310,041 shares held in treasury, impacting the total voting rights now at 8,165,036.

Stock BuybackBusiness Operations and Strategy
Touchstar plc Advances Share Buyback Programme
Positive
Aug 4, 2025

Touchstar plc announced the repurchase of 1,101 ordinary shares as part of its ongoing share buyback programme. This transaction, executed at a price of 88 pence per share, reflects the company’s strategic initiative to manage its share capital and potentially enhance shareholder value. The total voting rights in the company have been adjusted accordingly, and further announcements regarding the buyback programme are expected.

Stock BuybackRegulatory Filings and Compliance
Touchstar Executes Share Buyback, Adjusts Voting Rights
Neutral
Jul 28, 2025

Touchstar plc has executed a share buyback program, purchasing a total of 1,875 ordinary shares at prices ranging from 86 to 91.4 pence. This transaction, part of a previously announced buyback program, leaves the company’s total voting rights at 8,170,595, with implications for shareholder notifications under FCA rules.

Stock Buyback
Touchstar plc Continues Share Buyback Program
Neutral
Jul 15, 2025

Touchstar plc has repurchased 1,851 ordinary shares as part of its ongoing share buyback program, which was initially announced in June 2025. This transaction, executed through Zeus Capital Limited, does not change the company’s issued share capital but affects the total voting rights, now standing at 8,173,205, which stakeholders can use for interest notification under FCA rules.

Stock Buyback
Touchstar Executes Share Buyback Program
Positive
Jul 1, 2025

Touchstar plc has executed a share buyback program, purchasing 852 ordinary shares at a price of 86.7 pence each. This transaction is part of a previously announced buyback program and results in the company holding 299,161 shares in treasury, with total voting rights now at 8,175,916. The buyback is aimed at optimizing the capital structure and could potentially enhance shareholder value.

Stock Buyback
Touchstar Executes Share Buyback Program
Neutral
Jun 30, 2025

Touchstar plc has executed a share buyback program, purchasing 990 of its own ordinary shares at 87 pence each. This transaction, part of a previously announced buyback initiative, leaves the company’s issued share capital unchanged, with 298,309 shares now held in treasury. The total voting rights stand at 8,176,768, affecting shareholder calculations under FCA rules.

Stock Buyback
Touchstar Announces Share Buyback Transaction
Neutral
Jun 25, 2025

Touchstar plc announced the repurchase of 823 ordinary shares as part of its share buyback program, maintaining its issued share capital at 8,475,077. This transaction, executed through Zeus Capital Limited, adjusts the total voting rights to 8,178,730, impacting shareholder calculations under FCA rules.

Executive/Board ChangesShareholder MeetingsStock Buyback
Touchstar Expands Share Buyback Programme and Appoints New CEO
Positive
Jun 24, 2025

Touchstar plc has announced the successful passing of all resolutions at its Annual General Meeting, alongside a business update and a significant expansion of its Share Buyback Programme. The company has appointed Lynden Jones as the new CEO, with expectations for financial results to be weighted towards the second half of the year. The Share Buyback Programme has been expanded from £100,000 to £1,000,000, reflecting the company’s strong cash position and commitment to enhancing shareholder value.

Stock BuybackRegulatory Filings and Compliance
Touchstar plc Executes Share Buyback, Adjusts Voting Rights
Neutral
May 28, 2025

Touchstar plc announced the repurchase of 2,140 ordinary shares as part of its ongoing share buyback programme. This transaction, executed at a price of 86 pence per share, does not alter the company’s issued share capital, but adjusts the total voting rights to 8,182,477, potentially impacting shareholder calculations under regulatory guidelines.

Stock BuybackRegulatory Filings and Compliance
Touchstar plc Executes Share Buyback
Neutral
May 21, 2025

Touchstar plc announced the repurchase of 3,205 ordinary shares as part of its ongoing share buyback programme. This transaction, executed through Zeus Capital Limited, does not change the company’s issued share capital but adjusts the total voting rights, potentially impacting shareholder interests and compliance with FCA’s rules.

Stock Buyback
Touchstar plc Executes Share Buyback Programme
Neutral
May 20, 2025

Touchstar plc announced the purchase of 3,081 ordinary shares as part of its share buyback programme. This transaction, executed through Zeus Capital Limited, maintains the company’s issued share capital at 8,475,077, with 287,255 shares held in treasury. The total voting rights are now 8,187,822, impacting shareholder calculations under FCA rules. Further announcements on the buyback programme are expected.

Stock Buyback
Touchstar plc Executes Share Buyback, Maintains Capital Structure
Neutral
May 14, 2025

Touchstar plc announced the repurchase of 4,597 ordinary shares as part of its share buyback program. This transaction, executed through Zeus Capital Limited, maintains the company’s issued share capital at 8,475,077, with total voting rights now at 8,190,903, impacting shareholder calculations under FCA rules.

Stock Buyback
Touchstar PLC Executes Share Buyback to Optimize Capital Structure
Neutral
May 13, 2025

Touchstar PLC announced the repurchase of 4,577 ordinary shares as part of its share buyback program, maintaining its issued share capital at 8,475,077. This transaction, executed through Zeus Capital Limited, reflects the company’s ongoing efforts to manage its share capital and potentially enhance shareholder value.

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.Date of analysis: Aug 04, 2025