Touchstar (TST) AI Stock Analysis

• Market Cap: £7.16M
• Dividend Yield: 3.43%
• Average Volume (3M): 6.32K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.03
• Revenue Growth: -4.58%
• EPS Growth: -42.65%
• Country: UK
• Employees: 56
• Sector: Technology
• Sector Strength: 82
• Industry: Computer Hardware
• EPS (TTM): 0.04
• Shares Outstanding: 8,180,386
• 10 Day Avg. Volume: 2,327
• 30 Day Avg. Volume: 6,316
• PEG Ratio: 0.20
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.65
• 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

• Rating: 77 Outperform
• Price Target: 93.00p ▲(6.29%Upside)

Touchstar presents a solid investment opportunity with strong cash flow and a robust balance sheet offsetting concerns about declining income margins. The strategic initiatives and leadership changes are positive indicators for future growth. Despite the current downward trend in technical indicators, the stock is moderately attractive due to its reasonable valuation and proactive corporate events aimed at enhancing shareholder value.

Touchstar Business Overview & Revenue Model

Company Description

Touchstar (TST) is a technology company specializing in the development and provision of mobile computing solutions for field workforce automation. The company operates primarily in the enterprise mobility sector, offering a range of hardware and software products designed to enhance efficiency and productivity for businesses with mobile workforces. Touchstar's core products include rugged hardware devices, software applications, and integrated solutions tailored for various industries such as logistics, field service, and transportation.

How the Company Makes Money

Touchstar generates revenue through the sale of its mobile computing hardware and software solutions. The company's key revenue streams include the direct sale of rugged devices, software licensing, and recurring revenue from software maintenance and support services. Additionally, Touchstar may engage in strategic partnerships with industry-specific companies to expand its market reach and service offerings. These partnerships can contribute to revenue through collaborative projects, joint ventures, or integrated solutions that leverage both Touchstar's technology and its partners' industry expertise.

Touchstar Financial Statement Overview

Summary

Touchstar demonstrates strong cash flow and a stable balance sheet with low leverage risk, though it faces challenges in declining margins and revenue. The company's cash flow generation is particularly strong, offsetting some concerns about its income performance.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.89M	7.22M	6.74M	6.10M	5.89M
	Gross Profit
3.37M	4.29M	3.27M	2.79M	2.24M
	EBIT
322.00K	599.00K	437.00K	175.00K	-112.00K
	EBITDA
1.18M	1.42M	1.33M	1.02M	856.00K
	Net Income Common Stockholders
366.00K	639.00K	558.00K	341.00K	87.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.92M	3.00M	4.46M	3.90M	3.18M
	Total Assets
7.32M	6.82M	7.95M	7.78M	7.02M
	Total Debt
165.00K	211.00K	1.28M	1.93M	1.92M
	Net Debt
-2.75M	-2.79M	-3.18M	-1.97M	-1.25M
	Total Liabilities
3.88M	3.56M	5.01M	5.45M	5.05M
	Stockholders Equity
3.44M	3.26M	2.93M	2.33M	1.98M
Cash Flow		Free Cash Flow
1.02M	62.00K	1.28M	791.00K	1.10M
	Operating Cash Flow
1.11M	662.00K	1.90M	1.30M	1.56M
	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 Price: 87.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: 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 87.5 is below the 20-day moving average (MA) of 87.50, above the 50-day MA of 82.04, and below the 200-day MA of 89.44, indicating a neutral trend. The MACD of 1.41 indicates Positive momentum. The RSI at 75.39 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TST	77 Outperform	£7.16M	19.62	10.93%	3.43%	-4.58%	-42.65%
CNC	75 Outperform	£175.81M	37.07	12.72%	0.49%	27.38%	10.24%
NXQ	72 Outperform	£40.42M	182.43	0.50%	5.48%	-26.16%	-99.62%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%

Touchstar Corporate Events

Touchstar plc Executes Share Buyback, Adjusts Voting Rights

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.

Touchstar plc Executes Share Buyback

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.

Touchstar plc Executes Share Buyback Programme

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.

Touchstar plc Executes Share Buyback, Maintains Capital Structure

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.

Touchstar PLC Executes Share Buyback to Optimize Capital Structure

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.

Touchstar Launches £100,000 Share Buyback Programme

Touchstar plc has initiated a share buyback programme to repurchase up to £100,000 worth of its ordinary shares, aiming to enhance shareholder value by utilizing surplus cash. The programme, managed by Zeus Capital Limited, will operate independently of the company and is expected to positively impact the company’s financial structure and shareholder returns.

Touchstar plc Navigates Transition Year with Strategic Changes and Growth Plans

Touchstar plc reported a challenging year in 2024, marked by a 4.6% decline in revenue due to the delay of a major order, which is now scheduled for 2025. Despite the financial setbacks, the company increased its dividend by 20% and maintained a strong balance sheet. The strategic review concluded in early 2025 has led to significant organizational changes, including a new CEO appointment and a focus on enhancing shareholder value through increased investment in sales, marketing, and product development. The company is poised for growth, with a robust order book and plans to expand its market presence both in the UK and overseas.

Touchstar plc Announces Upcoming Financial Results and Investor Presentation

Touchstar plc has announced it will release its financial results for the year ending December 31, 2024, on April 29, 2025. The company will also hold an investor presentation on May 1, 2025, featuring key executives, which is open to current and potential shareholders. This presentation offers an opportunity for stakeholders to engage with the company’s leadership and gain insights into its performance and strategic direction.

Touchstar Announces Leadership Change and Strategic Growth Plan

Touchstar plc has announced a strategic update, including a change in leadership, with Lynden Jones set to succeed Mark Hardy as CEO in July 2025. The company aims to accelerate growth through increased investment in its fuel delivery business, expanding its technology applications, and enhancing marketing efforts. Additionally, Touchstar plans to return surplus cash to shareholders, reflecting its commitment to enhancing shareholder value. The leadership transition is expected to support the company’s growth trajectory and improve operational efficiency, positioning Touchstar for a promising future.