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Trustpilot Group Plc (GB:TRST)
LSE:TRST

Trustpilot Group Plc (TRST) AI Stock Analysis

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Trustpilot Group Plc

(LSE:TRST)

Rating:56Neutral
Price Target:
230.00p
▲(0.70%Upside)
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 (TRST) vs. iShares MSCI United Kingdom ETF (EWC)

Trustpilot Group Plc Business Overview & Revenue Model

Company DescriptionTrustpilot Group plc operates an online review platform for businesses and consumers in the United Kingdom, North America, Europe, and internationally. Its online review platform enables consumers to make purchasing decisions, as well as provides consumers with the opportunity to recommend businesses, products, services, and locations based on their experiences; and businesses to showcase their trustscore. The company also offers software modules for businesses on a software-as-a-service (SaaS) basis. Trustpilot Group plc was founded in 2007 and is based in Copenhagen, Denmark.
How the Company Makes MoneyTrustpilot 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 is showing significant improvement in financial performance, with 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
78
Positive
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
72
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
210.75M176.36M148.93M131.44M101.98M
Gross Profit
171.63M145.45M122.00M106.79M83.92M
EBIT
3.81M-618.00K-15.99M-24.15M-9.08M
EBITDA
17.70M8.92M-6.67M-16.16M-5.42M
Net Income Common Stockholders
6.23M7.11M-14.64M-25.89M-12.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
68.94M91.52M73.46M93.18M50.39M
Total Assets
144.52M156.37M124.78M129.04M85.23M
Total Debt
20.11M22.86M24.68M13.06M29.55M
Net Debt
-48.84M-68.60M-48.77M-80.12M-20.84M
Total Liabilities
103.13M93.26M78.95M69.59M78.23M
Stockholders Equity
41.39M63.11M45.84M59.45M7.00M
Cash FlowFree Cash Flow
19.74M17.32M-10.10M-9.66M2.13M
Operating Cash Flow
29.36M20.88M-2.70M-5.44M7.18M
Investing Cash Flow
-9.62M-3.56M-7.40M-4.22M-4.98M
Financing Cash Flow
-40.77M-2.95M-1.90M56.39M9.14M

Trustpilot Group Plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price228.40
Price Trends
50DMA
225.59
Positive
100DMA
267.79
Negative
200DMA
262.00
Negative
Market Momentum
MACD
-1.05
Positive
RSI
45.78
Neutral
STOCH
52.49
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 228.4 is below the 20-day moving average (MA) of 238.14, above the 50-day MA of 225.59, and below the 200-day MA of 262.00, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 52.49 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBATG
67
Neutral
£575.34M30.033.69%1.61%11.43%
GBNCC
67
Neutral
£503.28M-10.60%2.91%
66
Neutral
£390.91M-12.67%39.41%70.19%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
GBGBG
57
Neutral
£610.21M72.141.40%1.55%1.63%
56
Neutral
£939.26M207.6412.00%16.23%-17.91%
GBBIG
£289.57M117.441.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TRST
Trustpilot Group Plc
228.40
13.90
6.48%
GB:GBG
GB Group plc
246.00
-81.80
-24.95%
GB:NCC
NCC Group plc
163.00
22.41
15.94%
GB:ATG
Auction Technology Group PLC
476.00
-86.00
-15.30%
GB:PBEE
PensionBee Group PLC
163.00
6.00
3.82%
GB:BIG
Big Technologies PLC
102.00
-62.75
-38.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.