Tracsis Share Discussion Threads

[fuji99] 06/11/2020 08:17

Are they planning to expand abroad ? This could be one of the huge future potential.

[grahamburn] 04/11/2020 14:17

The results on 26 November may well reverse the trend.

[chasbas] 04/11/2020 09:26

At 510p the share price is very weak...surprising? I suppose the lock down doesn't help

[nchanning] 24/9/2020 10:05

I am very grateful for the fantastic leadership at Tracsis that has grown revenues and generated bucketloads of cash for many years without any need for external financing . My only complaint is how conservatively the balance sheet continues to be used . The Covid crisis has proven how resilient the business is to economic conditions (even with specific issues caused to the business by the pandemic) . There is no need for such a large net cash position . Even if it means paying slightly more for some acquisitions, Running at least a 1 times net debt to Ebitda ratio would dramatically improve returns on shareholder equity . I can only reiterate what a superb job management have done in every other regard . Please just use this lazy balance sheet and this will be the perfect AIM growth company

[rambutan2] 07/12/2019 15:05

Came across this, a bit out of date as from May, but thought it might be of interest:

[its the oxman] 14/11/2019 21:58

Good results today , could climb higher.

[stewy_18] 21/8/2019 13:35

Whatever happened to MPEC (remote condtion monitoring) in the states? Anything going on there?

[xajorkith] 20/8/2019 07:57

So, in summary:

FY Adjusted EBIT of 9.6m
Excellent cash generation with 24m net cash, despite paying 9m for acquisitions
Second half performance particularly pleasing
Pipeline of prospects as strong as ever

Seems far too cheap at 170m mkt cap.

EDIT: good write up from Paul Scott on Stockopedia's SCVR, with an updated FY 07/20 eps forecast of 32.1p - putting it on an ex-cash PE of 16.7 (at 620p).

[xajorkith] 14/8/2019 12:09

Cheap & getting cheaper it seems.

On tiny volumes at least, so hopefully next week's TU can restore confidence & get this moving back north.

Low liquidity can work both ways.

[nchanning] 13/8/2019 14:49

Amortisation of acquired intangibles , expensing R & D immediately , and virtually zero capex are helpfully obscuring what a wonderful cash machine this business is . And when the business has a great record of using that cash to make niche acquisitions at wonderful prices we have a lollapaloooza here !

[xajorkith] 13/8/2019 11:50

Indeed NChanning, with a trading update expected in the next week based on previous years.

Seems very good value given their consistent quality.

[nchanning] 13/8/2019 09:30

With the effect of the new acquisitions being felt in H2 expecting 10m + FCF this year . Great opportunity to pick up a sleepy summer bargain at 150m enterprise value for one of AIM's most reliable quality performers

[edwardt] 22/7/2019 13:55

with the advent of the european 4t railway package which opens up domestic rail passenger services within all EU states - any chance tracsis could suddenly have a new market? i am ignorant to if this could apply to them but reading on the subject led me to pose the question!

[xajorkith] 10/4/2019 09:12

Pretty much as expected after the March trading update, with the full benefit of recent acquisitions & large, five year framework agreement coming through in H2 & beyond.

Clear quality here & a strong LTBH for me.

[xajorkith] 14/2/2019 10:51

Have bought in here recently - comment on the other thread as it has charts.

[xajorkith] 14/2/2019 10:49

Commenting on this thread due the charts in the header.

Have been buying here recently, albeit not too heavy given general market nervousness.

Ticks all the right boxes for me:

Excellent free cash flow, large & rising net cash position, consistently strong operating margins / ROCE & steadily upgraded eps forecasts.

Didn't want to chase it higher but felt the recent pull back was a good opportunity to take a position for the longer term.

[battyliveson] 07/1/2019 08:43

Transition arrangements seems well managed with old CEO available to help the new one bed in. Happy to hold in 2019.

B

[chasbas] 08/11/2018 12:59

Strong results for year to 31st July. Positive outlook. Conservative well-managed company in growth industry. Strong balance sheet with cash of £22m. But this is a growth stock with organic revenue +14%. Adjusted EPS: Historic 25.5p. Forecast from (corporate broker) FinnCap of 26.3p with scope to increase. So at 600p prospective PER is 22.8x.
IMO they will comfortably beat 26.3p which is only +3%, which is a very low starting forecast. Quality company but low profile.

[nchanning] 31/10/2018 18:33

Forward P/e is only an estimate but given the recent ahead of expectations update we can be very confident that Tracsis will hit FinnCap's modestly upgraded expectations of 24.5p a share. Thanks to Tracsis's conservative accounting policies of expensing virtually all of its software development, and the amortisation of acquired intangibles, it has the lovely habit of free cash flow regularly exceeding accounting profits. Given that the recent trading update stated that cash balances are now at £22 million, and FinnCap's (conservatively upgraded) FCF estimate of £9.4 million for 2018, this puts Tracsis on a very modest EV/FCF of 15. A wonderful bargain for a fast growing company with very high quality earnings which has just provided virtual certainty on excellent results next week. Given the obvious momentum in the business further upgrades seem possible for next year

[steverabet] 24/8/2018 12:30

historic p/e - last reported earnings was 13.3p ish. forward p/e is only an estimate, although it seems to be a reasonable assumption that earnings will be ahead of forecasts. my point is, profits are racking up nicely, but so far, still relatively modestly, which makes the shares quite highly rated.

[buffetteer] 24/8/2018 12:08

Not quite sure how you arrive at 54x . The forward PE is 28.3 on earnings of 25.6...and that’s assumi h they do nothing with the £22m cash (unlikely)

[steverabet] 24/8/2018 11:57

this looks like a company that is going places, but i feel that a p/e of 54 is a bit too juicy. yes, the july 18 results look like they should be promising, but growth needs to be exponential rather than impressive to justify this price. unless some major pops up with a knockout bid?