Is TrueCar Stock a Good Investment?

TrueCar Investment Advice

TRUE

To provide specific investment advice or recommendations on TrueCar stock, we recommend investors consider the following general factors when evaluating TrueCar. This will help you to make an informed decision on whether to include TrueCar in one of your diversified portfolios:

Examine TrueCar's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research TrueCar's leadership team and their track record. Good management can help TrueCar navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact TrueCar's business and its evolving consumer preferences.
Compare TrueCar's performance and market position to its competitors. Analyze how TrueCar is positioned in terms of product offerings, innovation, and market share.
Check if TrueCar pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about TrueCar's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in TrueCar stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if TrueCar is a good investment.

Sell

Buy

Strong Sell

We provide advice to complement the current expert consensus on TrueCar. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure TrueCar is not overpriced, please validate all TrueCar fundamentals, including its ebitda, earnings per share, current liabilities, as well as the relationship between the debt to equity and market capitalization . Please also confirm TrueCar price to earning to double-check your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

Market Performance	Very Weak	Details
Volatility	Risky	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine TrueCar Stock

Researching TrueCar's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.68. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. TrueCar recorded a loss per share of 0.55. The entity last dividend was issued on the May 6, 2009.

To determine if TrueCar is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding TrueCar's research are outlined below:

	TrueCar generated a negative expected return over the last 90 days
	TrueCar has high historical volatility and very poor performance
	The company reported the previous year's revenue of 158.71 M. Net Loss for the year was (49.77 M) with profit before overhead, payroll, taxes, and interest of 145.32 M.
	TrueCar currently holds about 199.68 M in cash with (22.41 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.2.
	Over 89.0% of the company shares are owned by institutional investors
	Latest headline from gurufocus.com: TrueCar Inc Earnings Call Transcript Highlights Strategic Growth and ...

TrueCar uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in TrueCar. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to TrueCar's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	28th of February 2024 Upcoming Quarterly Report	View
	13th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	28th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact TrueCar's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises TrueCar's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2017-08-08	2017-06-30	0.0028	0.01	0.0072	257
2018-11-06	2018-09-30	0.05	0.04	-0.01	20
2017-11-06	2017-09-30	0.01	0.02	0.01	100
2017-05-09	2017-03-31	-0.02	-0.01	0.01	50
2014-08-07	2014-06-30	-0.03	-0.02	0.01	33
2019-08-08	2019-06-30	-0.0028	-0.02	-0.0172	614
2024-02-20	2023-12-31	-0.03	-0.01	0.02	66
2022-11-07	2022-09-30	-0.11	-0.13	-0.02	18

Know TrueCar's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as TrueCar is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading TrueCar backward and forwards among themselves. TrueCar's institutional investor refers to the entity that pools money to purchase TrueCar's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Acuitas Investments, Llc	2023-12-31	1.3 M
D. E. Shaw & Co Lp	2023-09-30	1.1 M
Morgan Stanley - Brokerage Accounts	2023-12-31	995.6 K
Springbok Capital Management, Llc	2023-12-31	937.8 K
Fuller & Thaler Asset Management Inc	2023-12-31	775.5 K
Whetstone Capital Advisors, Llc	2023-12-31	766.6 K
Northern Trust Corp	2023-12-31	740.3 K
Jacobs Levy Equity Management, Inc.	2023-09-30	561.7 K
J. Goldman & Co Lp	2023-12-31	436.3 K
Caledonia (private) Investments Pty Ltd	2023-12-31	18.4 M
Cannell Capital Llc	2023-12-31	8.2 M

Note, although TrueCar's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

TrueCar's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 263.73 M. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate TrueCar's market, we take the total number of its shares issued and multiply it by TrueCar's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

250.78 Million

TrueCar's profitablity analysis

TrueCar's profitability indicators refer to fundamental financial ratios that showcase TrueCar's ability to generate income relative to its revenue or operating costs. If, let's say, TrueCar is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, TrueCar's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of TrueCar's profitability requires more research than a typical breakdown of TrueCar's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.25)	(0.26)
Return On Capital Employed	(0.32)	(0.30)
Return On Assets	(0.24)	(0.25)
Return On Equity	(0.31)	(0.33)

The company has Profit Margin (PM) of (0.22) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.15) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.15.

Determining TrueCar's profitability involves analyzing its financial statements and using various financial metrics to determine if TrueCar is a good buy. For example, gross profit margin measures TrueCar's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of TrueCar's profitability and make more informed investment decisions.

The data published in TrueCar's official financial statements usually reflect TrueCar's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of TrueCar. For example, before you start analyzing numbers published by TrueCar accountants, it's critical to develop an understanding of what TrueCar's liquidity, profitability, and earnings quality are in the context of the Interactive Media & Services space in which it operates.

Please note, the presentation of TrueCar's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, TrueCar's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in TrueCar's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of TrueCar. Please utilize our Beneish M Score to check the likelihood of TrueCar's management manipulating its earnings.

Evaluate TrueCar's management efficiency

TrueCar has return on total asset (ROA) of (0.0939) % which means that it has lost $0.0939 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.2135) %, meaning that it created substantial loss on money invested by shareholders. TrueCar's management efficiency ratios could be used to measure how well TrueCar manages its routine affairs as well as how well it operates its assets and liabilities. As of May 4, 2024, Return On Tangible Assets is expected to decline to -0.26. The current year's Return On Capital Employed is expected to grow to -0.3. At present, TrueCar's Non Currrent Assets Other are projected to decrease significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 8 M, whereas Other Current Assets are forecasted to decline to about 4 M.

	Last Reported	Projected for Next Year
Book Value Per Share	1.78	2.21
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	1.69	1.57
Enterprise Value Over EBITDA	(5.18)	(5.43)
Price Book Value Ratio	1.94	3.62
Enterprise Value Multiple	(5.18)	(5.43)
Price Fair Value	1.94	3.62
Enterprise Value	88.6 M	84.2 M

The analysis of TrueCar's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze TrueCar's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of TrueCar Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

1.662

Basic technical analysis of TrueCar Stock

As of the 4th of May, TrueCar has the Coefficient Of Variation of (1,281), variance of 14.51, and Risk Adjusted Performance of (0.04). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TrueCar, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to break down and analyze data for thirteen technical drivers for TrueCar, which can be compared to its competition. Please validate TrueCar market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if TrueCar is priced more or less accurately, providing market reflects its prevalent price of 2.85 per share. Please also confirm TrueCar jensen alpha, which is currently at (0.45) to double-check the company can sustain itself at a future point.

TrueCar's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific TrueCar insiders, such as employees or executives, is commonly permitted as long as it does not rely on TrueCar's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases TrueCar insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Jantoon Reigersman over a month ago Disposition of 11267 shares by Jantoon Reigersman of TrueCar at 3.35 subject to Rule 16b-3
		Swart Jeff over two months ago Disposition of 15000 shares by Swart Jeff of TrueCar at 3.4546 subject to Rule 16b-3
		Ion Yadigaroglu over six months ago TrueCar exotic insider transaction detected

Understand TrueCar's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing TrueCar's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.09)
	Mean Deviation	2.98
	Coefficient Of Variation	(1,281)
	Standard Deviation	3.81
	Variance	14.51
	Information Ratio	(0.09)
	Jensen Alpha	(0.45)
	Total Risk Alpha	(0.57)
	Treynor Ratio	(0.1)
	Maximum Drawdown	18.11
	Value At Risk	(6.75)
	Potential Upside	5.38
	Skewness	(0.78)
	Kurtosis	1.22

	Risk Adjusted Performance	(0.04)
	Market Risk Adjusted Performance	(0.09)
	Mean Deviation	2.98
	Coefficient Of Variation	(1,281)
	Standard Deviation	3.81
	Variance	14.51
	Information Ratio	(0.09)
	Jensen Alpha	(0.45)
	Total Risk Alpha	(0.57)
	Treynor Ratio	(0.1)
	Maximum Drawdown	18.11
	Value At Risk	(6.75)
	Potential Upside	5.38
	Skewness	(0.78)
	Kurtosis	1.22

Consider TrueCar's intraday indicators

TrueCar intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of TrueCar stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Daily Balance Of Power	(9,223,372,036,855)
	Rate Of Daily Change	0.99
	Day Median Price	2.85
	Day Typical Price	2.85
	Price Action Indicator	(0.01)
	Period Momentum Indicator	(0.03)
	Relative Strength Index	41.86

TrueCar Corporate Filings

8K	29th of April 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F4	15th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
	8th of April 2024 Other Reports	View Verify
10K	22nd of February 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance	View Verify

TrueCar time-series forecasting models is one of many TrueCar's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary TrueCar's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

TrueCar Stock media impact

Far too much social signal, news, headlines, and media speculation about TrueCar that are available to investors today. That information is available publicly through TrueCar media outlets and privately through word of mouth or via TrueCar internal channels. However, regardless of the origin, that massive amount of TrueCar data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of TrueCar news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of TrueCar relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to TrueCar's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive TrueCar alpha.

TrueCar Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards TrueCar can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Be your own money manager

Our tools can tell you how much better you can do entering a position in TrueCar without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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TrueCar Corporate Directors

TrueCar corporate directors refer to members of a TrueCar board of directors. The board of directors generally takes responsibility for the TrueCar's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of TrueCar's board members must vote for the resolution. The TrueCar board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

Todd Bradley	Independent Director	Profile
John Krafcik	Pres and Director	Profile
Abhishek Agrawal	Independent Director	Profile
Erin Lantz	Director	Profile

How to buy TrueCar Stock?

Examine TrueCar's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research TrueCar's leadership team and their track record. Good management can help TrueCar navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact TrueCar's business and its evolving consumer preferences.
Compare TrueCar's performance and market position to its competitors. Analyze how TrueCar is positioned in terms of product offerings, innovation, and market share.
Check if TrueCar pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about TrueCar's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in TrueCar?

The danger of trading TrueCar is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of TrueCar is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than TrueCar. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile TrueCar is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether TrueCar is a strong investment it is important to analyze TrueCar's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact TrueCar's future performance. For an informed investment choice regarding TrueCar Stock, refer to the following important reports: