Track Group (TRCK) AI Stock Analysis

• Market Cap: $4.15M
• Dividend Yield: N/A
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 0.27%
• EPS Growth: 65.10%
• Country: US
• Employees: 91
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.12
• Shares Outstanding: 11,863,758
• 10 Day Avg. Volume: 2,975
• 30 Day Avg. Volume: 2,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.04
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 8.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by negative equity and profitability issues. Technical analysis provides some neutral signals, but the negative valuation due to ongoing losses further weighs down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Track Group Business Overview & Revenue Model

Company Description

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices. Its products include ReliAlert XC4, a GPS monitoring device; ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology; and Shadow, an offender tracking device with 3G compliant. The company also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, it offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; InTouch, a smartphone monitoring and supervision application for the criminal justice market; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. It sells its products in the United States, Latin America, and internationally. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.

How the Company Makes Money

Track Group generates revenue through multiple streams, primarily by selling electronic monitoring devices and providing associated software and monitoring services. The company enters into contracts with government agencies, correctional facilities, and private sector clients, which often include ongoing service agreements that provide a steady income. Additionally, Track Group may earn revenue from licensing its technology and software solutions, as well as from maintenance and support services for its products. Partnerships with local and state governments, as well as collaborations with other technology and security firms, further bolster its revenue potential by expanding its market reach and enhancing service offerings.

Track Group Financial Statement Overview

Summary

Track Group faces significant financial challenges characterized by a weak balance sheet with negative equity, volatile income performance with negative profitability, and fluctuating cash flows. The company needs to address its financial instability to improve its overall financial health.

Income Statement

The company has shown some volatility in its income statement. The gross profit margin is relatively strong, but declining revenue and negative net profit margins indicate challenges in profitability. The TTM data suggests a negative EBIT and EBITDA, which are concerning for operational efficiency.

Balance Sheet

The balance sheet presents a weak financial position with negative stockholders' equity, indicating insolvency risk. The total debt is significant, though there is no debt in the latest TTM report. The equity ratio is negative, further reflecting the company's financial instability.

Cash Flow

The company's cash flow statement shows a mixed performance. Operating cash flow remains positive, but free cash flow has fluctuated significantly. The recent improvement in free cash flow is a positive sign, but the overall trend suggests instability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.86M	36.89M	34.48M	36.97M	39.66M	33.88M
Gross Profit	17.90M	16.60M	15.30M	17.35M	21.11M	18.65M
EBITDA	4.74M	2.88M	4.02M	780.13K	10.65M	7.30M
Net Income	-1.40M	-3.08M	-3.39M	-7.39M	3.44M	-118.64K
Balance Sheet
Total Assets	39.96M	37.67M	40.24M	44.68M	53.52M	47.73M
Cash, Cash Equivalents and Short-Term Investments	4.91M	3.57M	4.06M	5.31M	8.42M	6.76M
Total Debt	43.48M	42.95M	43.51M	44.01M	44.14M	31.54M
Total Liabilities	51.11M	49.28M	48.74M	49.74M	51.15M	48.66M
Stockholders Equity	-11.15M	-11.61M	-8.49M	-5.05M	2.37M	-920.62K
Cash Flow
Free Cash Flow	4.34M	3.09M	-687.40K	-2.26M	314.49K	1.78M
Operating Cash Flow	6.42M	4.91M	3.88M	802.96K	4.82M	4.73M
Investing Cash Flow	-3.01M	-3.84M	-4.56M	-3.06M	-4.51M	-2.94M
Financing Cash Flow	-117.04K	-365.07K	-511.47K	-515.50K	1.38M	-1.79M

Track Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRCK, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.25, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 78.03 is Negative, neither overbought nor oversold. The STOCH value of 60.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRCK.

Track Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGL	64 Neutral	36.14M	174.28	―	―	26.84%	-45.92%
WRAP	57 Neutral	120.95M	-11.01	-2350.00%	―	-55.50%	59.81%
GNSS	46 Neutral	116.50M	-4.04	-889.21%	―	8.95%	14.34%
TRCK	44 Neutral	$4.15M	―	26.54%	―	0.27%	65.10%
SVRE	41 Neutral	13.45M	-0.02	-328.67%	―	16.11%	83.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Track Group Corporate Events

Track Group Sells Chilean Business to Enhance Operations

Track Group, Inc. has announced the sale of its Chilean business entity, Track Group Chile, to Inversiones Santa Hortensia for $1 million. This strategic move is part of their plan to enhance their international operations by partnering with local experts, ensuring access to top-tier electronic monitoring technology. The partnership aims to meet future capital needs in Chile and secure procurements, positioning Track Group to better serve the Chilean market with their advanced technology solutions.