What Should You know About TrueCar (TRUE) Before Investing?

TrueCar logged a 7.25% change today, and is now trading at a price of $2.15 per share. The S&P 500 index moved 1.65% and the Nasdaq posted a 2.3% change.

TrueCar shares moved -38.89% over the last 52 weeks, with a high of $4.08 and a low of $1.3. During this time, the stock lagged the S&P 500 index by -29.35%. As of January 2022, the company's 50-day average price is $2.78. TrueCar, Inc. is an Internet-based information, technology and communication services company in the United States. The small-cap Technology company is based in Santa Monica, CA. TrueCar has not offered any dividends in the last year.

The Company Has Irregular Cash Flows and Declining Revenues:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $353,880 $280,076 $233,465 $164,964
Revenue Growth n/a -20.86% -16.64% -29.34%
Gross Margins 15.03% 15.66% 9.7% -39.3%
Gross Margins Growth n/a 4.19% -38.06% -505.15%
Operating Margins -17.2% -6.61% -14.34% -76.2%
Operating Margins Growth n/a 61.57% -116.94% -431.38%
Earnings Per Share -$0.51 $0.77 -$0.4 -$1.34
EPS Growth n/a 250.98% -151.95% -235.0%
Diluted Shares (MM) 107 100 96 88
Free Cash Flow (k) $9,060 $28,840 $3,505 -$40,817
FCF Growth n/a 218.32% -87.85% -1264.54%
Capital Expenditures (k) $11,284 $10,277 $10,689 $11,680

TrueCar has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. Its forward P/E isn't meaningful either because its guidance EPS is -0.16.

On the other hand, TrueCar is possibly undervalued in terms of its net assets because its P/B ratio is 1.061 compared to its sector average of 6.23.

4 analysts are following TrueCar and have set target prices ranging from $2.75 to $5.0 per share. On average, they have given the company a rating of hold. At the current price of $2.15, TRUE is trading -44.72% away from its average analyst target price of $3.88 per share, implying an analyst consensus of strong upside potential for the stock.

The company has no information on the number of shares sold short since 2% of the company's shares are tied to short positions. Institutions own 92% of TrueCar's shares, while the insider ownership rate stands at 17%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.