TrueCar Stock Analysis (NASDAQ:TRUE)

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$15.45 $0.21 (1.38%) TRUE stock closing price Mar 27, 2017 (Closing)
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TrueCar
Updated on : Mar 27, 2017
previous close
TRUE 15.5 (0%)
NASDAQ 5840.4 (0%)
Closing Price On: Mar 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-14%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Cash Flow
Operating cash flow:
$5.4M
Net Income:
-$8M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
TRUE PS :
4.8
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-17%
Return on Equity:
-18.5%
Free Cash Flow Margin:
2.2%
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TrueCar Analysis Video

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View TrueCar stock analysis video. This is our TRUE analyst opinion covering the buy and sell arguments for TRUE stock.

TrueCar Inc. Stock Rating (1.8/5)

Our TrueCar stock opinion is based on fundamentals of the company. This TrueCar stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy TRUE stock?

  • TrueCar sales grew by 16.5% year on year in 2016 Q4.

Should you sell TRUE stock?

  • TrueCar registered a negative operating margin of -14% (average) over the Trailing Twelve Months (TTM).
  • TrueCar posted an average Net loss of -15% in the last twelve months.
  • The lack of profits renders the PE ratio useless for TRUE stock.
  • The company is trading at a price to sales multiple of 4.8, which is higher in comparison to the Internet Services industry average of 2.6, making TRUE stock expensive.
  • TrueCar's negative ROIC of -17% indicates operational inefficiency.
  • A negative ROE of -18.5% indicates that the company is not able to generate profits with the money shareholders have invested.

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