TrueCar Stock Analysis (NASDAQ:TRUE)

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$15.26 $0.06 (0.39%) TRUE stock closing price Apr 21, 2017 (Closing)
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TrueCar
Updated on : Apr 21, 2017
previous close
TRUE 15.3 (0%)
NASDAQ 5910.5 (0%)
Closing Price On: Apr 21, 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:
5.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
28.8M
Debt/Equity Ratio:
 0.13
Compared to the industry
Cash Flow
Operating cash flow:
$5.4M
Net Income:
-$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 :
4.7
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 (1.9/5)

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's revenue growth came in at 16.5% in 2016 Q4.
  • 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 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 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 4.7, which is higher in comparison to the Internet Services industry average of 2.6, making TRUE stock expensive.
  • TrueCar has a negative ROIC (Return on Invested Capital) of -17%.
  • TrueCar has a negative return on equity of -18.5%. This indicates that the firm is inefficient at generating profits.
  • The company has an anaemic Free Cash Flow (FCF) margin of 2.2%.

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