Trustpilot Group Plc (TRST) AI Stock Analysis

• Market Cap: £952.89M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 210.7
• Beta (1Y): 1.85
• Revenue Growth: 16.23%
• EPS Growth: -17.91%
• Country: UK
• Employees: 988
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 411,083,680
• 10 Day Avg. Volume: 2,212,863
• 30 Day Avg. Volume: 1,768,311
• PEG Ratio: 0.72
• Price to Book (P/B): 10.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.95
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: £337.75
• Price Target Upside: 45.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: 230.00p ▼(-0.78%Downside)

The overall stock score is driven primarily by strong financial performance, but technical analysis indicates bearish trends, and valuation is concerning due to an extremely high P/E ratio without a dividend yield. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Bookings Growth

North America drives bookings growth acceleration, with bookings growth coming in at +26%.

Financial Performance

Total revenue is expected to be at around $211m in FY24, up approximately 18%, which is about 1% above MS and consensus expectations.

Negative Factors

Guidance

Full year guidance on topline growth maintained but adj. EBITDA guidance raised.

Trustpilot Group Plc Business Overview & Revenue Model

Company Description

Trustpilot Group Plc (TRST) is a leading global online review platform that connects businesses and consumers. It operates in the technology and marketing sectors, providing a platform for consumers to share their experiences and for businesses to engage with their customers. Trustpilot's core service is its review platform, which allows users to rate and review businesses across various industries, thereby helping consumers make informed purchasing decisions and enabling businesses to build trust and improve their products and services.

How the Company Makes Money

Trustpilot makes money primarily through subscription services offered to businesses. Companies pay for access to Trustpilot's business tools, which include features such as analytics, review collection and management, and the ability to display Trustpilot ratings and reviews on their own websites. These subscriptions are tiered and provide varying levels of functionality based on business needs. Additionally, Trustpilot may generate revenue through advertising services, where businesses can enhance their visibility on the platform. Significant partnerships, such as integrations with e-commerce platforms and CRM systems, also play a role in expanding Trustpilot's reach and enhancing its value proposition to businesses, which in turn supports revenue growth.

Trustpilot Group Plc Financial Statement Overview

Summary

Trustpilot Group Plc shows strong revenue growth and improving profitability metrics. The balance sheet is stable with manageable leverage, and cash flow generation is robust, supporting ongoing operations and future growth.

Income Statement

Trustpilot Group Plc demonstrates strong revenue growth with a 19.48% increase from 2023 to 2024. Gross profit margin is robust, indicating effective cost control. However, net profit margin is moderate at 2.96%, suggesting room for improvement in profitability. The positive trend in EBIT and EBITDA margins from negative values in prior years shows improving operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.49 indicates a moderate level of leverage, which is manageable. Stockholders' equity has decreased, impacting the equity ratio. Return on equity is modest at 15.07%, reflecting steady use of equity capital. Overall, the balance sheet shows stability with a healthy cash position.

Cash Flow

Operating cash flow to net income ratio is strong, indicating efficient cash conversion. Free cash flow growth rate is positive, reflecting improved cash management and operational efficiency. The company is generating healthy free cash flow relative to net income, supporting future investments and debt servicing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
210.75M	176.36M	148.93M	131.44M	101.98M
	Gross Profit
171.63M	145.45M	122.00M	106.79M	83.92M
	EBIT
3.81M	-618.00K	-15.99M	-24.15M	-9.08M
	EBITDA
17.70M	8.92M	-6.67M	-16.16M	-5.42M
	Net Income Common Stockholders
6.23M	7.11M	-14.64M	-25.89M	-12.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.94M	91.52M	73.46M	93.18M	50.39M
	Total Assets
144.52M	156.37M	124.78M	129.04M	85.23M
	Total Debt
20.11M	22.86M	24.68M	13.06M	29.55M
	Net Debt
-48.84M	-68.60M	-48.77M	-80.12M	-20.84M
	Total Liabilities
103.13M	93.26M	78.95M	69.59M	78.23M
	Stockholders Equity
41.39M	63.11M	45.84M	59.45M	7.00M
Cash Flow		Free Cash Flow
19.74M	17.32M	-10.10M	-9.66M	2.13M
	Operating Cash Flow
29.36M	20.88M	-2.70M	-5.44M	7.18M
	Investing Cash Flow
-9.62M	-3.56M	-7.40M	-4.22M	-4.98M
	Financing Cash Flow
-40.77M	-2.95M	-1.90M	56.39M	9.14M

Trustpilot Group Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 231.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRST, the sentiment is Neutral. The current price of 231.8 is below the 20-day moving average (MA) of 235.28, above the 50-day MA of 225.45, and below the 200-day MA of 262.48, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 67.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TRST.

Trustpilot Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBEE	69 Neutral	£383.80M	―	-12.67%	―	39.41%	70.19%
ATG	67 Neutral	£546.68M	28.55	3.69%	―	1.61%	11.43%
NCC	67 Neutral	£519.03M	―	-10.60%	1.82%	―	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
GBG	57 Neutral	£589.12M	69.65	1.40%	1.77%	1.63%	―
TRST	56 Neutral	£952.89M	210.73	12.00%	―	16.23%	-17.91%