| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 42.00 | 295 |
| Intrinsic value (DCF) | 9.45 | -11 |
| Graham-Dodd Method | 2.12 | -80 |
| Graham Formula | 6.98 | -34 |
ReposiTrak, Inc. (NYSE: TRAK) is a leading software-as-a-service (SaaS) provider specializing in supply chain compliance, food safety, and B2B e-commerce solutions for the grocery, convenience store, and specialty retail industries. Headquartered in Murray, Utah, the company offers a suite of proprietary tools, including ReposiTrak MarketPlace for supplier discovery, Compliance and Food Safety solutions for regulatory risk mitigation, and Supply Chain solutions for inventory and supplier relationship management. ReposiTrak serves multi-store retail chains, wholesalers, distributors, and their suppliers, helping them optimize operations, reduce compliance risks, and enhance supply chain transparency. With a strong focus on the North American market, ReposiTrak leverages its SaaS model to deliver scalable, subscription-based solutions that improve efficiency and traceability in complex retail supply chains. The company, formerly known as Park City Group, rebranded in December 2023 to better reflect its core business focus.
ReposiTrak presents an attractive investment opportunity due to its niche focus on supply chain compliance and food safety—a growing concern for retailers and regulators. The company’s SaaS model generates recurring revenue with high margins (net income of $5.96M in FY2023) and strong operating cash flow ($6.96M). Its low beta (0.558) suggests relative stability compared to broader tech stocks. However, the company operates in a competitive SaaS landscape with larger players, and its revenue base ($20.45M) remains small, posing scalability risks. The lack of significant debt ($481K) and a healthy cash position ($25.15M) provide financial flexibility, but dividend payouts (0.0693/share) may limit reinvestment potential. Investors should weigh its specialized market positioning against growth execution risks.
ReposiTrak’s competitive advantage lies in its specialized focus on compliance and food safety—a critical pain point for grocery and retail supply chains. Unlike generic SaaS providers, its solutions (e.g., ScoreTracker, Audit Management) are tailored to regulatory requirements like FSMA, creating high switching costs for clients. The integration of B2B e-commerce (MarketPlace) with compliance tools differentiates it from standalone inventory management systems. However, the company faces competition from broader supply chain SaaS platforms (e.g., Blue Yonder, SAP) that offer deeper ERP integrations and global scalability. ReposiTrak’s smaller scale limits R&D resources compared to giants like Oracle, but its vertical expertise allows for targeted innovation. Its partnerships with retailers and suppliers provide a network effect, though adoption barriers persist in legacy systems. The rebranding to ReposiTrak sharpens its market positioning but requires continued investment in customer education to compete with established players.