Deep Value: cash covers more than 100% of the stock price

This company holds roughly $8M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Track Group

TRCK

Hardware, Equipment & Parts · Technology

Price

$0.64

+0.05 (+8.47%)

Market Cap

$7.6M

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Mixed

Stability

Weak

Valuation

Good

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Share count falling — buybacks

−1.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 12.0M (2021) → 11.9M (2025)

Winston Score History

The full picture

Track Group makes electronic monitoring equipment used to track people on parole, probation, or house arrest. Their main product is an ankle bracelet that uses GPS to report a person's location to authorities in real time. Their customers are government agencies — mainly state and county corrections departments across the United States.

The company earns money by charging governments a daily or monthly fee per monitored individual, which creates a recurring, subscription-like revenue stream. Track Group operates primarily in the United States but also has some international contracts. Its moat comes from long-term government contracts and the high cost of switching vendors once a monitoring program is set up. The main risk is that the business depends heavily on government budgets and policy decisions — if lawmakers shift away from electronic monitoring as an alternative to incarceration, demand for Track Group's services could shrink.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+475.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$3M/ year

→ Flat (+2% vs prior year)

8.0% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

62.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$8M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Track Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

44.6%

Healthy — 44.6% gross margin

Profit after running costs

Operating Margin

2.8%

Thin — 2.8% operating margin

Return on the money invested

ROCE

4.4%

Weak — 4.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+1.1%

Nearly flat sales (+1.1% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

27%

Weak — only 27% of profit becomes cash

Spare cash per sale

FCF Margin

12.0%

Converts sales into free cash efficiently (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

1.09

Elevated debt (1.09)

Covers its interest

Interest Cover

0.56x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

1.1x

Attractive valuation — P/E 1.1

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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