TrueCar Stock Analysis (NASDAQ:TRUE)

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$19.99 $0.03 (0.15%) TRUE stock closing price Jul 24, 2017 (Closing)
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TrueCar
Updated on : Jul 24, 2017
previous close
TRUE 20 (0%)
NASDAQ 6410.8 (0%)
Closing Price On: Jul 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-11.7%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
29M
Debt/Equity Ratio:
 0.13
Compared to the industry
Cash Flow
Operating cash flow:
$5M
Net Income:
-$6.8M
PROS      CONS
Recent Growth
Low Debt Burden
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
TRUE PS :
6
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-14.8%
Return on Equity:
-16.4%
Free Cash Flow Margin:
-0.6%
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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 (2/5)

Our TrueCar stock opinion is based on fundamentals of the company. This TrueCar stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy TRUE stock?

  • The Year Over Year (YoY) revenue growth for TrueCar was 22.5% in 2017 Q1.
  • With its debt/equity ratio of  0.13, TrueCar has a lower debt burden when compared to the Computer and Technology average.

Should you sell TRUE stock?

  • TrueCar reported an average operating margin of -11.7% over the Last Twelve Months (LTM).
  • Over the last 12 months, TrueCar had an average Net loss of -12.6%.
  • The company does not have profits. Hence the PE ratio is meaningless for TRUE stock.
  • The company is trading at a price to sales multiple of 6, which is overvalued in comparison to the Internet Services industry average multiple of 2.8.
  • TrueCar has a negative ROIC (Return on Invested Capital) of -14.8%.
  • A negative ROE of -16.4% indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -0.6%.

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