ReposiTrak, Inc. (TRAK) stock analysis

P/E below its 5-year median

ReposiTrak's P/E of 18.3 is below its own 5-year median of 34.8.

P/E below the industry

ReposiTrak's P/E of 18.3 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

ReposiTrak's EV/EBITDA of 12.2 is below its 5-year median of 22.9.

P/B below the industry

ReposiTrak's price-to-book of 2.49 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $7.15 is below our fair value estimate of $10.54.

Margin of safety over 20%

The price is 32.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 13.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.5% over the last twelve months, against a 5-year average of 13.0% a year.

Growing slower than the industry

Revenue grew 3.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 85.8% over the last twelve months, against 83.7% a year earlier.

Return on equity under 15%

Return on equity was 14.9% over the last twelve months and averaged 12.8% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 26.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

ReposiTrak's return on equity of 14.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 13.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 32.5% over the last twelve months, against a 5-year average of 28.8%.

Net margin above the industry

ReposiTrak's net margin of 32.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Low debt

Debt is 0.6% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 0.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 2794% of total debt.

Interest well covered

Operating income covers interest expense 203.8 times.

Short-term assets cover short-term debts

Current assets are 3.85 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 10.24; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

ReposiTrak paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; ReposiTrak yields 1.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 21.6% of net income.

Covered by free cash flow

Dividends take 19.9% of free cash flow.