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TRUECAR INC (TRUE) Stock Fundamental Analysis

NASDAQ:TRUE - Nasdaq - US89785L1070 - Common Stock - Currency: USD

2.5  -0.17 (-6.37%)

After market: 2.5 0 (0%)

Fundamental Rating

3

TRUE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. No worries on liquidiy or solvency for TRUE as it has an excellent financial health rating, but there are worries on the profitability. TRUE does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year TRUE has reported negative net income.
TRUE had a negative operating cash flow in the past year.
In the past 5 years TRUE reported 4 times negative net income.
In multiple years TRUE reported negative operating cash flow during the last 5 years.
TRUE Yearly Net Income VS EBIT VS OCF VS FCFTRUE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -16.18%, TRUE is doing worse than 62.12% of the companies in the same industry.
TRUE's Return On Equity of -21.17% is in line compared to the rest of the industry. TRUE outperforms 50.00% of its industry peers.
Industry RankSector Rank
ROA -16.18%
ROE -21.17%
ROIC N/A
ROA(3y)-27.14%
ROA(5y)-15.55%
ROE(3y)-34.28%
ROE(5y)-19.93%
ROIC(3y)N/A
ROIC(5y)N/A
TRUE Yearly ROA, ROE, ROICTRUE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60

1.3 Margins

TRUE has a better Gross Margin (87.26%) than 84.85% of its industry peers.
TRUE's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for TRUE so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 87.26%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.88%
GM growth 5Y-0.48%
TRUE Yearly Profit, Operating, Gross MarginsTRUE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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7

2. Health

2.1 Basic Checks

TRUE does not have a ROIC to compare to the WACC, probably because it is not profitable.
TRUE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TRUE Yearly Shares OutstandingTRUE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
TRUE Yearly Total Debt VS Total AssetsTRUE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

2.2 Solvency

Based on the Altman-Z score of -0.24, we must say that TRUE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.24, TRUE is doing worse than 68.18% of the companies in the same industry.
There is no outstanding debt for TRUE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -0.24
ROIC/WACCN/A
WACC9.14%
TRUE Yearly LT Debt VS Equity VS FCFTRUE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 4.69 indicates that TRUE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.69, TRUE belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Quick Ratio of 4.69 indicates that TRUE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.69, TRUE belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.69
Quick Ratio 4.69
TRUE Yearly Current Assets VS Current LiabilitesTRUE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 44.03% over the past year.
EPS 1Y (TTM)44.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-400%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.92%

3.2 Future

TRUE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.91% yearly.
Based on estimates for the next years, TRUE will show a quite strong growth in Revenue. The Revenue will grow by 14.33% on average per year.
EPS Next Y-8.8%
EPS Next 2Y27.51%
EPS Next 3Y21.55%
EPS Next 5Y26.91%
Revenue Next Year20.01%
Revenue Next 2Y18.49%
Revenue Next 3Y15.28%
Revenue Next 5Y14.33%

3.3 Evolution

TRUE Yearly Revenue VS EstimatesTRUE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100M 200M 300M
TRUE Yearly EPS VS EstimatesTRUE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 -0.2 -0.4

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1

4. Valuation

4.1 Price/Earnings Ratio

TRUE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TRUE. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TRUE Price Earnings VS Forward Price EarningsTRUE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TRUE Per share dataTRUE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5

4.3 Compensation for Growth

TRUE's earnings are expected to grow with 21.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.51%
EPS Next 3Y21.55%

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0

5. Dividend

5.1 Amount

TRUE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TRUECAR INC

NASDAQ:TRUE (2/21/2025, 4:30:01 PM)

After market: 2.5 0 (0%)

2.5

-0.17 (-6.37%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-18 2025-02-18/amc
Earnings (Next)04-28 2025-04-28
Inst Owners79.21%
Inst Owner Change-1.84%
Ins Owners2.52%
Ins Owner Change-0.27%
Market Cap217.40M
Analysts80
Price Target4.85 (94%)
Short Float %1.1%
Short Ratio3.77
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.96%
Max EPS beat(2)1.96%
EPS beat(4)4
Avg EPS beat(4)27.29%
Min EPS beat(4)1.96%
Max EPS beat(4)70.59%
EPS beat(8)7
Avg EPS beat(8)26.19%
EPS beat(12)8
Avg EPS beat(12)-0.57%
EPS beat(16)12
Avg EPS beat(16)17.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-7.43%
Max Revenue beat(2)1.73%
Revenue beat(4)1
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)1.73%
Revenue beat(8)1
Avg Revenue beat(8)-3.87%
Revenue beat(12)1
Avg Revenue beat(12)-5.77%
Revenue beat(16)3
Avg Revenue beat(16)-4.36%
PT rev (1m)0%
PT rev (3m)15.62%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-12%
EPS NY rev (1m)0.6%
EPS NY rev (3m)-4.37%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.27
P/FCF N/A
P/OCF N/A
P/B 1.7
P/tB 1.75
EV/EBITDA N/A
EPS(TTM)-0.15
EYN/A
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS1.96
BVpS1.47
TBVpS1.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -16.18%
ROE -21.17%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 87.26%
FCFM N/A
ROA(3y)-27.14%
ROA(5y)-15.55%
ROE(3y)-34.28%
ROE(5y)-19.93%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.88%
GM growth 5Y-0.48%
F-Score5
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 46.66%
Cap/Sales 4.97%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.69
Quick Ratio 4.69
Altman-Z -0.24
F-Score5
WACC9.14%
ROIC/WACCN/A
Cap/Depr(3y)67.7%
Cap/Depr(5y)59.52%
Cap/Sales(3y)6.43%
Cap/Sales(5y)5.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-400%
EPS Next Y-8.8%
EPS Next 2Y27.51%
EPS Next 3Y21.55%
EPS Next 5Y26.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.92%
Revenue Next Year20.01%
Revenue Next 2Y18.49%
Revenue Next 3Y15.28%
Revenue Next 5Y14.33%
EBIT growth 1Y53.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year106.79%
EBIT Next 3Y39.59%
EBIT Next 5Y22.36%
FCF growth 1Y62.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y82.07%
OCF growth 3YN/A
OCF growth 5YN/A