Trustpilot Group Plc (TRST) AI Stock Analysis

• Market Cap: £882.53M
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 1087.0
• Beta (1Y): 1.63
• Revenue Growth: 18.75%
• EPS Growth: -93.75%
• Country: UK
• Employees: 988
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 406,587,040
• 10 Day Avg. Volume: 2,161,729
• 30 Day Avg. Volume: 2,325,314
• PEG Ratio: -21.78
• Price to Book (P/B): 38.59
• Price to Sales (P/S): 7.58
• P/FCF Ratio: 80.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £315.17
• Price Target Upside: 47.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: 241.00p ▲(13.04% Upside)

Trustpilot Group Plc's overall stock score is primarily driven by its strong financial performance, with significant revenue growth and improving profitability. However, the high P/E ratio suggests overvaluation, and the technical analysis indicates mixed signals with short-term bullish momentum but longer-term bearish trends. The absence of dividend yield further impacts the valuation negatively.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates successful market penetration and increasing demand for its services, supporting long-term business expansion.

Cash Flow Generation

Efficient cash conversion and positive free cash flow growth enhance Trustpilot's ability to invest in growth opportunities and manage debt, ensuring financial stability.

Operational Efficiency

Improving operational efficiency, as evidenced by better EBIT and EBITDA margins, suggests effective cost management, enhancing profitability prospects.

Negative Factors

Net Profit Margin

A moderate net profit margin indicates that while revenue is growing, the company needs to optimize costs further to enhance overall profitability.

Equity Position

A decrease in stockholders' equity can weaken the company's financial foundation, potentially limiting its ability to raise capital or absorb losses.

Earnings Per Share

The significant decline in earnings per share growth reflects challenges in translating revenue growth into shareholder value, which may affect investor confidence.

Trustpilot Group Plc Business Overview & Revenue Model

Company Description

Trustpilot Group Plc (TRST) is a leading global review platform that connects businesses and consumers through authentic customer feedback. Operating primarily within the technology and internet services sector, Trustpilot provides an open and accessible platform for consumers to share reviews and for businesses to harness the power of these reviews to build trust and improve their services. The company offers tools and services that help businesses collect, manage, and showcase reviews across various digital platforms.

How the Company Makes Money

Trustpilot makes money primarily through subscription packages offered to businesses. These packages provide businesses with access to advanced features, such as analytics, review collection tools, and the ability to respond to reviews, all aimed at leveraging customer feedback to enhance business reputation and performance. Additionally, Trustpilot generates revenue from additional services, including advertising and partnerships that allow businesses to gain greater visibility and access to a broader audience. The company may also benefit from strategic partnerships with other digital platforms to enhance its service offerings and expand its market reach.

Trustpilot Group Plc Financial Statement Overview

Summary

Trustpilot Group Plc is showing significant improvement in financial performance, marked by strong revenue growth and improving profitability metrics. The balance sheet remains stable with manageable leverage, and cash flow generation is strong, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	233.80M	210.75M	176.36M	148.93M	131.44M	101.98M
Gross Profit	191.46M	171.63M	145.45M	122.00M	106.79M	83.92M
EBITDA	22.57M	17.70M	8.92M	-6.67M	-16.16M	-5.42M
Net Income	1.08M	6.23M	7.11M	-14.64M	-25.89M	-12.28M
Balance Sheet
Total Assets	148.37M	144.52M	156.37M	124.78M	129.04M	85.23M
Cash, Cash Equivalents and Short-Term Investments	67.67M	68.94M	91.52M	73.46M	93.18M	50.39M
Total Debt	20.18M	20.11M	22.86M	24.68M	13.06M	29.55M
Total Liabilities	117.35M	103.13M	93.26M	78.95M	69.59M	78.23M
Stockholders Equity	31.01M	41.39M	63.11M	45.84M	59.45M	7.00M
Cash Flow
Free Cash Flow	29.24M	19.74M	17.32M	-10.10M	-9.66M	2.13M
Operating Cash Flow	38.86M	29.36M	20.88M	-2.70M	-5.44M	7.18M
Investing Cash Flow	-9.98M	-9.62M	-3.56M	-7.40M	-4.22M	-4.98M
Financing Cash Flow	-42.26M	-40.77M	-2.95M	-1.90M	56.39M	9.14M

Trustpilot Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 213.20
• 50DMA: Negative
• 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 Negative. The current price of 213.2 is below the 20-day moving average (MA) of 220.97, below the 50-day MA of 219.10, and below the 200-day MA of 253.14, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TRST.

Trustpilot Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBG	66 Neutral	£616.63M	73.90	1.40%	1.75%	1.94%	―
TRST	63 Neutral	£882.53M	1,087.00	2.53%	―	18.75%	-93.75%
PBEE	62 Neutral	£378.26M	―	-20.10%	―	29.58%	17.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BIG	61 Neutral	£244.02M	97.88	-27.80%	―	-10.70%	-341.47%
ATG	60 Neutral	£380.94M	19.94	3.69%	―	1.69%	88.69%
NCC	59 Neutral	£442.54M	―	-10.60%	2.08%	―	―