NasdaqGS:TRUE

Stock Analysis Report

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Executive Summary

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has TrueCar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRUE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TRUE's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

TRUE

1.0%

US Interactive Media and Services

2.1%

US Market


1 Year Return

-21.5%

TRUE

36.9%

US Interactive Media and Services

19.8%

US Market

Return vs Industry: TRUE underperformed the US Interactive Media and Services industry which returned 36.8% over the past year.

Return vs Market: TRUE underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

TRUEIndustryMarket
7 Day2.0%1.0%2.1%
30 Day-10.4%5.0%8.1%
90 Day-18.2%4.0%6.0%
1 Year-21.5%-21.5%36.9%36.9%22.5%19.8%
3 Year-66.8%-66.8%56.7%56.6%46.5%36.8%
5 Year-45.9%-45.9%124.2%123.7%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is TrueCar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TrueCar undervalued compared to its fair value and its price relative to the market?

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRUE ($4.05) is trading below our estimate of fair value ($6.73)

Significantly Below Fair Value: TRUE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRUE is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: TRUE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRUE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRUE is good value based on its PB Ratio (1.3x) compared to the US Interactive Media and Services industry average (3.2x).


Next Steps

Future Growth

How is TrueCar forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRUE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TRUE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TRUE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TRUE's revenue (0.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TRUE's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRUE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has TrueCar performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRUE is currently unprofitable.

Growing Profit Margin: TRUE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRUE is unprofitable, but has reduced losses over the past 5 years at a rate of 8.7% per year.

Accelerating Growth: Unable to compare TRUE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRUE is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (5%).


Return on Equity

High ROE: TRUE has a negative Return on Equity (-5.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is TrueCar's financial position?


Financial Position Analysis

Short Term Liabilities: TRUE's short term assets ($259.8M) exceed its short term liabilities ($39.8M).

Long Term Liabilities: TRUE's short term assets ($259.8M) exceed its long term liabilities ($35.8M).


Debt to Equity History and Analysis

Debt Level: TRUE is debt free.

Reducing Debt: TRUE currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TRUE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TRUE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 55.7% per year.


Next Steps

Dividend

What is TrueCar current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TRUE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TRUE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TRUE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRUE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRUE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mike Darrow (62 yo)

1.5yrs

Tenure

US$2,012,637

Compensation

Mr. Michael D. Darrow, also known as Mike, has been President and Chief Executive Officer of TrueCar, Inc and serves as its Director since March 9, 2020. He was President at ALG, Inc., since January 15, 20...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.01M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Darrow
President1.5yrsUS$2.01m0.69%
$ 2.9m
Charles Thomas
Principal Financial Officerno dataUS$1.34m0.073%
$ 309.0k
Jeffrey Swart
Executive VP4.83yrsUS$1.48m0.35%
$ 1.5m
Victor Perry
no dataUS$10.29m0.61%
$ 2.6m
Simon Smith
Executive Vice President of Dealer Sales & Service1.83yrsUS$1.82m0.23%
$ 987.9k
Kristin Slanina
Chief Operating Officerno datano datano data
Elias Rokos
Chief Technology Officer0.17yrno datano data
Alison Sternberg
Senior VP of Investor Relationsno datano datano data
Shadee Malekafzali
Senior Director of Public Relationsno datano datano data
John Foster
Executive Vice President of People1.33yrsno datano data
James Menard
Senior Vice President of Dealer Sales4.67yrsno datano data
Paul Edmonds
Senior Vice President of Dealer Marketing & Operations4.5yrsno datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: TRUE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Darrow
President1.5yrsUS$2.01m0.69%
$ 2.9m
Robert Buce
Independent Director15.58yrsUS$225.00k0.32%
$ 1.4m
John Mendel
Independent Director3.5yrsUS$222.50k0.038%
$ 162.3k
Wesley Nichols
Independent Director4yrsUS$225.00k0.050%
$ 208.8k
Christopher Claus
Independent Chairman of the Board4.75yrsUS$247.50k0.12%
$ 523.9k
Philip McKoy
Independent Director2.08yrsUS$210.00k0.035%
$ 148.3k
Erin Lantz
Independent Director4yrsUS$220.00k0.050%
$ 208.8k
Barbara Carbone
Director0.25yrno datano data

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TRUE's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TRUE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TrueCar, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TrueCar, Inc.
  • Ticker: TRUE
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$421.581m
  • Shares outstanding: 104.09m
  • Website: https://www.truecar.com

Number of Employees


Location

  • TrueCar, Inc.
  • 120 Broadway
  • Suite 200
  • Santa Monica
  • California
  • 90401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRUENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2014
5TCDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014

Biography

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its pl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:24
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.