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ReposiTrak (TRAK)
NYSE:TRAK
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ReposiTrak
(NYSE:TRAK)
77Outperform
Positive Factors
Compliance Rules
ReposiTrak is well-positioned to benefit from compliance rules in the food industry, which require tracking and tracing from farm-to-fork.
Revenue Growth
High visibility for accelerating revenue, with deferred revenue up 70.4% y/y, indicating traction with traceability initiatives.
Negative Factors
Earnings Performance
Revenue, adjusted EBITDA, and GAAP EPS came in light of projections.
Valuation Concerns
Shares currently trade at a P/E multiple of 50.2x our FY25 EPS estimate, above the peer average of 44.9x.
ReposiTrak (TRAK) vs. S&P 500 (SPY)
Market Cap
$409.57M
Dividend Yield0.31%
Average Volume (3M)49.71K
Price to Earnings (P/E)67.5
Beta (1Y)1.28
Revenue Growth9.73%
EPS Growth22.33%
CountryUS
Employees73
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding18,276,380
10 Day Avg. Volume33,678
30 Day Avg. Volume49,713
Financial Highlights & Ratios
PEG Ratio9.14
Price to Book (P/B)7.81
Price to Sales (P/S)0.00
P/FCF Ratio38.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside29.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ReposiTrak Business Overview & Revenue Model
Company DescriptionReposiTrak, Inc. (TRAK) is a technology company operating within the supply chain and food safety sectors. It offers a comprehensive platform that provides compliance management, sourcing, food safety, and supply chain solutions. The company’s services cater to retailers, wholesalers, and suppliers, helping them streamline operations, ensure regulatory compliance, and enhance supply chain efficiency.
How the Company Makes MoneyReposiTrak generates revenue primarily through subscription fees for its platform services. The company offers various modules that clients can subscribe to, such as compliance management, sourcing, and food safety, which are essential for efficient supply chain operations. Key revenue streams include recurring subscription fees from retailers, wholesalers, and suppliers who rely on ReposiTrak's platform to manage and improve their supply chain processes. Additionally, the company may engage in strategic partnerships and collaborations to enhance its service offerings and expand its client base, further contributing to its earnings. Significant factors such as regulatory changes in food safety and supply chain management can also influence the demand for ReposiTrak's solutions, impacting revenue.
ReposiTrak Financial Statement Overview
Summary
ReposiTrak displays solid financial performance with strong revenue growth, profitability, a stable balance sheet, and robust cash flow generation. The company effectively manages costs and capital, indicating a positive financial outlook.Income Statement
ReposiTrak has demonstrated strong revenue growth with a consistent increase from previous periods, showcasing a positive trajectory in the software industry. The company maintains robust profitability with solid gross and net profit margins, indicating efficient cost management and strong market demand. EBIT and EBITDA margins further reflect operational efficiency. The overall income statement presents a stable and growing financial performance.85
Very Positive
Balance Sheet
The balance sheet of ReposiTrak is strong, with a high equity ratio reflecting a stable financial structure. The debt-to-equity ratio is low, indicating minimal reliance on debt for financing. Additionally, the high return on equity demonstrates the company's effective use of equity capital to generate profits. Overall, the balance sheet showcases financial stability and efficient capital management.88
Very Positive
Cash Flow
ReposiTrak's cash flow statement is positive, with strong operating cash flow and free cash flow indicating healthy liquidity. The free cash flow to net income ratio is favorable, suggesting efficient conversion of income into cash. The positive growth rate in free cash flow reflects the company's ability to generate cash from operations, supporting future growth and investment opportunities.82
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.20M | 20.45M | 19.10M | 18.05M | 21.01M | 20.04M | Gross Profit |
| 17.37M | 17.04M | 14.71M | 13.98M | 13.10M | 12.20M | EBIT |
| 5.42M | 5.02M | 5.09M | 4.41M | 2.89M | 1.48M | EBITDA |
| 8.07M | 7.61M | 7.11M | 5.38M | 5.41M | 2.62M | Net Income Common Stockholders |
| 6.34M | 5.96M | 5.59M | 4.00M | 4.12M | 1.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.86M | 25.15M | 23.99M | 21.46M | 24.07M | 20.35M | Total Assets |
| 16.95M | 51.60M | 50.58M | 49.32M | 55.05M | 53.43M | Total Debt |
| 2.01M | 481.02K | 747.11K | 2.97M | 6.70M | 7.47M | Net Debt |
| -1.85M | -24.67M | -23.24M | -18.49M | -17.37M | -12.87M | Total Liabilities |
| 5.88M | 4.74M | 4.70M | 6.42M | 9.91M | 10.85M | Stockholders Equity |
| 11.07M | 46.85M | 45.88M | 42.90M | 45.14M | 42.58M |
| Cash Flow | Free Cash Flow | ||||
| 9.78M | 6.89M | 7.96M | 6.05M | 5.08M | 3.55M | Operating Cash Flow |
| 9.84M | 6.96M | 8.86M | 6.10M | 5.40M | 4.20M | Investing Cash Flow |
| -65.41K | -100.71K | -903.19K | 1.32M | -318.87K | -650.42K | Financing Cash Flow |
| -4.99M | -5.70M | -5.43M | -10.03M | -1.36M | -1.81M |
ReposiTrak Technical Analysis
Positive
22.41
Price Trends
20.53
Positive
20.82
Positive
20.39
Positive
Market Momentum
0.63
Negative
61.08
Neutral
73.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRAK, the sentiment is Positive. The current price of 22.41 is above the 20-day moving average (MA) of 21.72, above the 50-day MA of 20.53, and above the 200-day MA of 20.39, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRAK.
ReposiTrak Risk Analysis
ReposiTrak disclosed 26 risk factors in its most recent earnings report. ReposiTrak reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ReposiTrak Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $409.57M | 67.50 | 14.17% | 0.31% | 9.73% | 22.33% | |
76 Outperform | $445.16M | 34.55 | 6.11% | ― | 7.76% | ― | |
70 Outperform | $554.25M | 134.67 | 1.94% | ― | 3.62% | -53.21% | |
60 Neutral | $11.59B | 10.44 | -7.23% | 2.94% | 7.46% | -10.66% | |
54 Neutral | $410.90M | ― | -64.59% | ― | 5.33% | 58.41% | |
54 Neutral | $595.99M | ― | -46.57% | ― | -2.39% | -2961.26% | |
51 Neutral | $360.63M | ― | 48.46% | ― | -0.61% | -1.61% |
* Technology Sector Average
Performance Comparison
TRAK
ReposiTrak
22.41
5.47
32.29%
MITK
Mitek Systems
9.77
-3.17
-24.50%
DOMO
Domo
8.97
1.52
20.40%
BIGC
BigCommerce Holdings
5.13
-2.87
-35.88%
PUBM
PubMatic
11.42
-12.16
-51.57%
BMBL
Bumble
5.77
-6.44
-52.74%
ReposiTrak Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2025)
| % Change Since: -2.18%|
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and net income growth, successful cross-selling, and a strong cash position. However, increased operating expenses and the FDA's extension of the compliance enforcement deadline were noted as challenges. Despite these challenges, the company remains optimistic about its growth prospects.Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue grew 16% in the third fiscal quarter to $5.9 million. Recurring revenue increased 15% to $5.8 million.
Net Income Growth
Net income grew 27% from $1.6 million to $2 million. GAAP net income to shareholders increased 33% from $1.4 million to $1.9 million.
Deferred Revenue Increase
Deferred revenue increased 70% to $4.2 million, indicating future revenue potential.
Cross-Selling Success
Cross-selling initiatives are gaining momentum, contributing to overall growth across all business lines.
Cash Position
Cash balance is over $28 million as of March 31, 2025, with significant cash generation and plans to return capital to shareholders.
Negative Updates
Operating Expense Increase
Operating expense increased 7% due to ongoing investments, which include marketing, technology, and onboarding costs.
FDA Compliance Deadline Extension
The FDA extended the compliance enforcement deadline by 30 months, which could potentially delay the expected rapid adoption of traceability solutions.
Increased Costs in G&A and Depreciation
G&A increased 8% and depreciation increased 14% due to leased equipment for a new data center.
Company Guidance
During ReposiTrak's fiscal third quarter 2025 earnings call, John Merrill, the CFO, provided guidance on the company's financial performance and strategic direction. The company reported a 16% growth in revenue to $5.9 million, with a significant increase in deferred revenue, indicating future growth. Net income grew by 27%, and the company aims to achieve 10-20% annual revenue growth. Their strategy focuses on expanding traceability and cross-selling their services, leading to increased profitability. Operating expenses increased by 7%, but the company maintains a strong cash position with $28.1 million on hand. ReposiTrak plans to continue returning 50% of its cash from operations to shareholders through dividends and stock buybacks, having already returned $25 million in capital. The company remains debt-free and is investing in growth through automation and customer onboarding.ReposiTrak Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
ReposiTrak Reports 7% Revenue Increase in Q2 2024
Positive
Feb 14, 2025
ReposiTrak announced its financial results for the second fiscal quarter ended December 31, 2024, reporting a 7% increase in total revenue to $5.5 million and a 12% rise in net income to common shareholders. The company highlighted growth across all business lines, driven by increasing demand for food safety and compliance solutions ahead of the FSMA 204 deadline in 2026. The company is well-positioned to capitalize on industry endorsements and partnerships, with a significant increase in deferred revenue signaling continued growth. ReposiTrak ended the quarter with a strong cash position and no bank debt, continuing to invest in traceability solutions and returning capital to shareholders through dividends and share buybacks.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.