ReposiTrak, Inc. (NYSE: TRAK)

Sector: Technology Industry: Software - Application CIK: 0000050471
Market Cap 179.87 Mn
P/B 16.24
P/E -81.69
P/S 15.32
ROIC (Qtr) 10.58
Div Yield % 0.19
Rev 1y % (Qtr) 9.75
Total Debt (Qtr) 457,304.00
Debt/Equity (Qtr) 0.01

About

ReposiTrak, Inc., a Nevada-based company with the stock symbol of "RPT," operates in the software-as-a-service (SaaS) industry, providing a business-to-business (B2B) e-commerce, compliance, and supply chain management platform. ReposiTrak's services aim to assist retailers, wholesalers, and product suppliers in streamlining their supply chain operations, reducing costs, and enhancing food safety. ReposiTrak's main business activities revolve around providing supplier discovery and B2B e-commerce solutions, compliance and food safety solutions,...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 8.09M provides robust 17.69x coverage of total debt 457304, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 28.79M provide 123.96x coverage of short-term debt 232296, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 34.66M provides 75.79x coverage of total debt 457304, indicating robust asset backing and low credit risk.
  • Operating cash flow of 8.09M provides exceptional 162.36x coverage of interest expenses 49826, showing strong debt service capability.
  • Operating cash flow of 8.09M provides strong 22.80x coverage of stock compensation 354806, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 8.09M barely covers its investment activities of (54276), with a coverage ratio of -149.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 8.09M provides thin coverage of dividend payments of (1.64M) with a -4.94 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 8.06M represents just -30.82x of debt issuance (261566), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 8.09M is outpaced by equity issuance of (132927) (-60.86 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 34.66M provide limited backing for working capital of 28.90M, which is 1.20x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 234.56 Bn 28.15 5.46 10.73 Bn
2 CRM Salesforce, Inc. 204.28 Bn 32.96 5.39 11.14 Bn
3 SHOP Shopify Inc. 169.36 Bn 95.09 15.83 1.12 Bn
4 UBER Uber Technologies, Inc 167.13 Bn 10.04 3.37 12.19 Bn
5 INTU Intuit Inc. 140.92 Bn 175.06 33.55 6.78 Bn
6 ADBE Adobe Inc. 124.98 Bn 17.53 5.26 6.65 Bn
7 NOW ServiceNow, Inc. 121.03 Bn 69.24 9.11 2.40 Bn
8 ADP Automatic Data Processing Inc 100.13 Bn 23.64 4.72 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.19 2.50
EV to Cash from Ops. EV/CFO -110.54 12.27
EV to Debt EV to Debt 387.94 50.31
EV to EBIT EV/EBIT -125.01 10.96
EV to EBITDA EV/EBITDA -330.73 16.84
EV to Free Cash Flow [EV/FCF] EV/FCF -84.00 14.08
EV to Market Cap EV to Market Cap 0.99 -118.20
EV to Revenue EV/Rev 15.11 4.45
Price to Book Value [P/B] P/B 16.24 4.27
Price to Earnings [P/E] P/E -81.69 -133.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.50 -3.97
Dividend Payout Ratio % Div Payout % (Qtr) 20.60 4.25
Dividend per Basic Share Div per Share (Qtr) 0.08 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 17.23 2.54
Interest Coverage Int. cover (Qtr) 163.73 -51.80
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 62.20 -210.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.65 9,906.83
Dividend Growth (1y) % Div 1y % (Qtr) 15.15 1.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.37 -265.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.11 55.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 21.75 -227.83
EBT Growth (1y) % EBT 1y % (Qtr) 21.58 -88.00
EPS Growth (1y) % EPS 1y % (Qtr) 15.62 121.91
FCF Growth (1y) % FCF 1y % (Qtr) 11.37 -40.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.32 92.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.21 0.02
Cash Ratio Cash Ratio (Qtr) 5.52 3.77
Current Ratio Curr Ratio (Qtr) 6.54 8.19
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.16
Interest Cover Ratio Int Coverage (Qtr) 163.73 -51.80
Times Interest Earned Times Interest Earned (Qtr) 163.73 -51.80
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 40.70 -105.77
EBIT Margin % EBIT Margin % (Qtr) 35.26 -131.65
EBT Margin % EBT Margin % (Qtr) 35.05 -122.72
Gross Margin % Gross Margin % (Qtr) 84.10 58.14
Net Profit Margin % Net Margin % (Qtr) 29.50 -127.70