Trakopolis Is Accelerating Its Growth – How Does It Stack Up?

With yesterday’s (May 3rd) news that Honeywell and Trakopolis have closed their first major enterprise sale of the ConneXt Lone Worker, future growth indicators are starting to line up, which is beneficial to any investor thinking about what company to buy in a particular sector. The new four year-year deal is worth a minimum of $4.79 million (USD) and carries a tidy recurring revenue stream for TRAK. While those numbers are important, it’s not be to missed that this was the first material deal with its partner, Honeywell, which is THE global leader in this area.

To summarize:
Based on recently reported financial results from various companies in the IoT (Internet of Things) space, we constructed a comparable chart to see how Trakopolis stacks up against its peers on the TSX Venture exchange.

TrackX BeWhere Blackline Trakopolis
Stock Price $0.44 $0.26 $3.55 $1.14
Shares Outstanding 55.6 million 50.2 million 28.8 million 23 million
Market Cap $24.5 million $13 million $102.2 million $26.6 million
Revenue

(Trailing based on last reported quarter)
$6.5 million $351,000 $10 million $5.8 million
Multiple of revenue 3.8 X Revenue 37 X Revenue 10.2 X Revenue 4.5 X Revenue
Profitability No No No No
Cash On Hand $1.4 million $1.8 million $1.4 million $3.2 million
Major Distributing Partner Unnamed partners Small resellers Small resellers Honeywell just starting

As you can see, revenue multiples vary widely, which suggests investors have different expectations about future growth potential. However, apples to apples, Trakopolis has a tighter share structure, one of the lowest revenue multiples and has the most cash on hand amongst the peer group. These facts in combination with Trakopolis’ news on the first Honeywell deal as well as the company’s fundamental results suggest that Trakopolis is well positioned and should stand out amongst its peers.

TRAK has only been trading since last November.