ReposiTrak Inc. Common Stock (TRAK)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $4 million in annual free cash flow (3.2% yield on market cap)
• Solid return on equity of 14.9% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 13.2 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($5) with negative 60% margin of safety—limited downside protection

AI Analysis

ReposiTrak Inc. Common Stock is a micro-cap technology company valued at $139 million. The business generates $24 million in annual revenue with a 7.0% net margin and $4 million in free cash flow. From a quality standpoint, ReposiTrak shows Altman Z-Score of 13.2 confirms fortress-level solvency and adequate 15% ROE. On valuation, the stock is reasonably priced at 20.4x earnings, with trades above its Graham Number with a negative 60% margin. Growth dynamics show revenue growing at 6.7% and profit growth of 8.7%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $4 million in annual free cash flow (3.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer