Trustpilot Group Plc (TRST) AI Stock Analysis

• Market Cap: £734.56M
• Dividend Yield: N/A
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 932.0
• Beta (1Y): 1.83
• 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: 394,078,370
• 10 Day Avg. Volume: 2,349,160
• 30 Day Avg. Volume: 2,357,596
• 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: £311.67
• Price Target Upside: 97.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 186.00p ▲(18.10% Upside)

Trustpilot Group Plc's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high valuation. The company's robust revenue growth and improving profitability metrics are positive, but the stock's current technical setup and high P/E ratio suggest caution. Investors should monitor for improvements in technical trends and valuation metrics.

Positive Factors

Revenue Growth

The strong revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitiveness.

Cash Flow Generation

Efficient cash conversion and positive free cash flow growth enhance financial flexibility, enabling investment in growth opportunities and debt servicing.

Profitability Improvement

Improving EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Negative Factors

Net Profit Margin

A moderate net profit margin indicates potential challenges in cost management or pricing power, which could impact long-term profitability.

Equity Position

A decrease in stockholders' equity may limit financial flexibility and affect the company's ability to leverage equity for growth initiatives.

EPS Growth

A significant decline in EPS growth suggests challenges in profit generation, which could hinder investor confidence and impact future capital raising.

Trustpilot Group Plc Business Overview & Revenue Model

Company Description

Trustpilot 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 Money

Trustpilot generates revenue primarily through a subscription-based model, offering different tiers of services to businesses that wish to manage their online reputation effectively. Key revenue streams include premium subscription plans that provide enhanced features such as review analytics, response capabilities, and customized branding options. Additionally, Trustpilot earns revenue from advertising services and partnerships with various companies that integrate Trustpilot reviews into their platforms or services. The company benefits from a growing demand for online reviews as a critical component of consumer decision-making, coupled with strategic partnerships that expand its reach and enhance its service offerings.

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. Continued focus on profitability and debt management will be key to sustaining this positive trajectory.

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: Neutral
• Last Price: 157.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 157.5 is below the 20-day moving average (MA) of 166.13, below the 50-day MA of 175.77, and below the 200-day MA of 214.23, indicating a neutral trend. The MACD of 1.21 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 96.27 is Negative, 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
GBG	70 Outperform	£586.02M	68.94	1.56%	1.73%	-0.18%	11.49%
BIG	68 Neutral	£225.43M	-7.40	-27.80%	―	-10.70%	-341.47%
PBEE	67 Neutral	£392.55M	-86.39	-20.10%	―	29.58%	17.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TRST	54 Neutral	£734.56M	932.00	2.53%	―	18.75%	-93.75%
NCC	54 Neutral	£427.54M	25.03	―	2.16%	―	―
ATG	52 Neutral	£397.17M	-3.73	-23.77%	―	5.83%	-663.14%