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Tracsis
(LSE:TRCS)
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Rating:63Neutral
Price Target:
341.00 p
▲(0.29% Upside)
Action:Reiterated
Date:08/24/26
The score is primarily supported by solid financial performance (growth, cash generation, and a historically strong balance sheet) and positive strategic corporate events aimed at improving recurring software margins. These positives are offset by weak technical momentum and a demanding valuation (very high P/E with a low dividend yield).
Positive Factors
Consistent Revenue Growth
Sustained revenue expansion indicates continuing demand for Tracsis’s transport software, analytics, and services. If maintained, this growth can broaden customer relationships and support operating scale across its rail-focused offerings.
Negative Factors
Low Profitability
Low net profitability limits the amount of revenue that converts into shareholder returns and reduces the cushion against cost inflation or execution issues. Margin volatility also makes the durability of earnings improvement less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained revenue expansion indicates continuing demand for Tracsis’s transport software, analytics, and services. If maintained, this growth can broaden customer relationships and support operating scale across its rail-focused offerings.
Read all positive factors
Tracsis (TRCS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£99.77M
Dividend Yield0.38%
Average Volume (3M)43.48K
Price to Earnings (P/E)104.9
Beta (1Y)0.68
Revenue Growth4.66%
EPS Growth88.89%
CountryUK
Employees500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding29,781,883
10 Day Avg. Volume44,032
30 Day Avg. Volume43,477
Financial Highlights & Ratios
PEG Ratio35.79
Price to Book (P/B)1.77
Price to Sales (P/S)1.41
P/FCF Ratio11.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£575.00Price Target Upside69.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.28
Revenue Forecast (FY)£75.97M
Tracsis Business Overview & Revenue Model
Company Description
Tracsis plc, together with its subsidiaries, engages in the provision of software, hardware, data analytics and geographic information systems, and services in the United Kingdom, Ireland, rest of Europe, Europe, North America, and internationally...
How the Company Makes Money
Tracsis makes money by selling a mix of software products (including recurring licences/subscriptions and associated support), professional/implementation services, and contracted operational services to rail and wider transport customers. Key rev...
Tracsis Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a strong recovery in the second half of the year, with notable improvements in profitability and strategic growth in recurring revenues and contracts. However, challenges remain in the U.K. rail sector and North American market penetration. Despite some headwinds, the overall outlook is optimistic with a focus on long-term growth strategies.Positive Updates
Improved Second Half Performance
The company's performance improved in the second half of FY '25, aligning with the revised guidance from April. This includes resolving profitability issues in Traffic Data & Events and entering the new financial year in a stronger position.
Negative Updates
Continued Uncertainty in U.K. Rail
Uncertainty in U.K. rail is expected to persist through FY '26, with constraints from Control Period 7 funding and impacts from proposed renationalization affecting procurement timelines.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Second Half Performance
The company's performance improved in the second half of FY '25, aligning with the revised guidance from April. This includes resolving profitability issues in Traffic Data & Events and entering the new financial year in a stronger position.
Read all positive updates
Company Guidance
During the Tracsis Plc Final Results Investor Presentation, CEO David Frost and CFO Andy Kelly provided detailed guidance and performance metrics for FY '25 while outlining strategic directions for FY '26. The company achieved a 1% increase in total group revenue to GBP 81.9 million and an adjusted EBITDA of GBP 12.6 million, despite facing headwinds in the U.K. rail market, specifically a 42% decline in Remote Condition Monitoring hardware revenue. Recurring and transactional revenues grew by 8%, and the company ended the year with GBP 23.4 million in cash after completing a GBP 3 million share buyback. Tracsis maintained a progressive dividend policy with a final dividend of 1.4p per share, marking an 8% increase. The leadership underscored ongoing investments in SaaS-native products and international market expansion, particularly in North America, while maintaining a focus on organic growth and disciplined M&A strategies. The outlook for FY '26 remains consistent with market expectations, factoring in continued uncertainty in the U.K. rail sector.Tracsis Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.51M | 81.89M | 81.02M | 82.02M | 68.72M | 50.24M |
| Gross Profit | 43.74M | 41.46M | 46.01M | 44.35M | 37.24M | 30.54M |
| EBITDA | 12.01M | 10.00M | 9.04M | 14.96M | 9.55M | 10.57M |
| Net Income | 981.00K | 520.00K | 488.00K | 6.81M | 1.50M | 2.36M |
Balance Sheet | ||||||
| Total Assets | 95.10M | 97.97M | 102.81M | 100.90M | 105.59M | 93.52M |
| Cash, Cash Equivalents and Short-Term Investments | 25.80M | 23.39M | 19.77M | 15.31M | 17.19M | 25.39M |
| Total Debt | 3.96M | 2.64M | 1.86M | 2.09M | 2.77M | 2.06M |
| Total Liabilities | 30.55M | 32.96M | 34.64M | 33.13M | 45.14M | 36.86M |
| Stockholders Equity | 64.55M | 65.01M | 68.17M | 67.77M | 60.45M | 56.66M |
Cash Flow | ||||||
| Free Cash Flow | 10.21M | 9.84M | 6.55M | 7.73M | 7.06M | 8.96M |
| Operating Cash Flow | 10.75M | 10.51M | 8.50M | 9.56M | 8.19M | 9.36M |
| Investing Cash Flow | -1.85M | -1.78M | -2.02M | -7.49M | -14.54M | -595.00K |
| Financing Cash Flow | -5.21M | -5.14M | -2.10M | -1.99M | -2.03M | -1.20M |
Tracsis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £96.37M | 13.92 | 5.57% | ― | -1.34% | 20.88% | |
63 Neutral | £99.77M | 104.94 | 1.51% | 0.39% | 4.66% | 88.89% | |
62 Neutral | £137.56M | -52.17 | -29.18% | ― | 47.75% | -308.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £57.99M | -26.88 | -3.09% | 4.90% | 5.73% | -5.65% | |
44 Neutral | £21.60M | -7.72 | -32.00% | ― | -2.84% | 22.22% |
* Technology Sector Average
GB:TRCS
Tracsis
340.00
-32.19
-8.65%
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Tracsis Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tracsis Tightens Leadership Incentives With Performance-Linked Share Option Awards
Positive
Aug 27, 2026
Tracsis has granted 485,871 share options to senior managers and other staff under its Long Term Incentive Plan for the FY25 year end, bringing total outstanding options to about 3.5% of its issued share capital. The largest awards go to the CEO a...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Tracsis Hits FY26 Targets and Seals Mistral Data Deal to Bolster Rail Software Growth
Positive
Aug 24, 2026
Tracsis reported that its financial performance for the year to 31 July 2026 was in line with market expectations, with revenue rising to about £85.5m and adjusted EBITDA increasing to roughly £13.5m, supported by the now-disposed Events...
Other
Tracsis Executives Boost Holdings with Open-Market Share Purchases
Positive
Aug 3, 2026
Tracsis plc, a specialist in transport-focused software, hardware and data services, operates through rail technology and data analytics divisions that help major rail, transport and infrastructure clients improve efficiency, safety and decision-m...
Regulatory Filings and Compliance
Tracsis Confirms Total Voting Rights at 29.8 Million Shares
Positive
Aug 3, 2026
Tracsis plc has confirmed that it has 29,781,884 ordinary shares of 0.4p each in issue, with every share carrying one vote and no shares held in treasury. This establishes the company’s total voting rights at 29,781,884, a figure shareholder...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Tracsis offloads events transport arm to sharpen focus on scalable software
Positive
Aug 3, 2026
Tracsis has sold its Events Transport Planning Management business, which provides event traffic management services for major outdoor events and venues in the UK, to private capital firm Connection Capital for an enterprise value of £7.25m ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Tracsis to buy FirstGroup’s Mistral Data in £48m push for SaaS-led rail software growth
Positive
Jul 29, 2026
Tracsis has agreed to acquire U.K. rail software provider Mistral Data Limited from FirstGroup for an enterprise value of £48 million on a cash-free, debt-free basis, funded through existing cash and its expanded revolving credit facility. Co...
Regulatory Filings and Compliance
Tracsis Confirms Updated Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Tracsis plc has confirmed that it has 29,778,605 ordinary shares of 0.4p each in issue, with each share carrying one vote and no shares held in treasury. As a result, the company’s total voting rights also stand at 29,778,605, a figure that ...
Regulatory Filings and Compliance
Tracsis Confirms Total Voting Rights at 29.78 Million Shares
Neutral
Jun 1, 2026
Tracsis plc has confirmed that its issued share capital consists of 29,778,028 ordinary shares of 0.4p each, with no shares held in treasury and each share carrying one voting right. The disclosure sets the official total voting rights figure that...
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.