TruFin (TRU) AI Stock Analysis

• Market Cap: £118.39M
• Dividend Yield: N/A
• Average Volume (3M): 195.20K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.51
• Revenue Growth: 203.09%
• EPS Growth: N/A
• Country: UK
• Employees: 188
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 98,661,480
• 10 Day Avg. Volume: 240,804
• 30 Day Avg. Volume: 195,199
• PEG Ratio: -0.11
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 12.62
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 128.00p ▲(7.11% Upside)

TruFin's overall stock score of 73 is driven by strong financial performance and strategic corporate actions, such as share buybacks, which enhance shareholder value. While technical indicators show positive momentum, the high P/E ratio suggests potential overvaluation. The absence of earnings call data limits further insights into future guidance.

Positive Factors

Revenue Growth

The impressive revenue growth rate indicates that TruFin's business model and market strategies are effectively capturing market share and expanding its customer base, which is crucial for long-term sustainability and competitive positioning.

Cash Flow Generation

Strong cash flow generation ensures TruFin can fund its operations, invest in growth opportunities, and maintain financial flexibility, which is vital for enduring business success and resilience against economic fluctuations.

Balance Sheet Health

A strong balance sheet with low leverage provides TruFin with stability and the ability to withstand financial pressures, enabling it to pursue strategic initiatives without the burden of excessive debt.

Negative Factors

Operational Profitability Challenges

While revenue is growing, the lack of EBIT indicates that TruFin may face challenges in achieving operational efficiency, which could hinder long-term profitability and require strategic adjustments.

Dependence on Revenue Growth

The company's reliance on rapid revenue growth to drive profitability may pose risks if market conditions change or growth slows, potentially impacting its ability to sustain financial performance.

Earnings Volatility

While profitability has improved, the recent shift from losses to profits suggests potential earnings volatility, which could affect investor confidence and the company's ability to plan long-term strategies.

TruFin Business Overview & Revenue Model

Company Description

TruFin plc provides financing services in the United Kingdom. The company operates through four segments: Short Term Finance, Payment Services, Publishing, and Other. It engages in distribution of finance products and invoice discounting; publishing of computer and video games; and investment activities. The company also offers early payment services to the public and private sectors; working capital finance and technology solutions to SMEs; and publishing and financing services to the mobile game and console sectors. In addition, it engages in develops, publishes, and sells electronic games; and provides market research information services. The company was incorporated in 2017 and is based in London, the United Kingdom.

How the Company Makes Money

TruFin generates revenue through multiple streams, primarily by offering its financial technology solutions to businesses. The company earns income from transaction fees associated with its payment processing services, interest from loans provided through its lending platforms, and subscription fees for its software solutions. Additionally, strategic partnerships with banks and financial institutions enhance its market reach and allow for co-branded products, contributing to revenue growth. TruFin's emphasis on data analytics also enables the company to provide value-added services, such as risk assessment and financial insights, further diversifying its revenue sources.

TruFin Financial Statement Overview

Summary

TruFin shows a strong financial turnaround with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage, and cash flow generation is strong. However, challenges in core operational profitability remain, as indicated by the zero EBIT.

Income Statement

TruFin demonstrated strong revenue growth with a substantial increase in total revenue from 2023 to 2024, achieving a growth rate of 203.1%. The gross profit margin improved significantly to 27.4%, indicating enhanced operational efficiency. The net profit margin turned positive at 8.8%, marking a notable turnaround from previous losses. However, EBIT remains at zero, suggesting challenges in core operational profitability. EBITDA margin improved to 13.4%, reflecting better operational cash flow generation.

Balance Sheet

The company has a healthy equity base with a debt-to-equity ratio of 0.10, indicating low leverage and reduced financial risk. The return on equity (ROE) is 11.5%, showcasing effective utilization of shareholder capital to generate profits. The equity ratio stands at 59.8%, highlighting a solid financial structure with a high proportion of equity financing. While the balance sheet is strong, the company must maintain its low leverage to ensure ongoing financial stability.

Cash Flow

TruFin's cash flow performance is commendable, with substantial improvement in operating cash flow to net income ratio, reflecting robust cash generation from operations. The free cash flow turned positive in 2024, showing a significant recovery from previous negative figures, with a growth rate of 151.1%. The free cash flow to net income ratio indicates efficient conversion of profits into cash. The strong cash position supports future growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.61M	54.95M	18.13M	16.12M	13.12M	14.83M
Gross Profit	38.33M	15.04M	3.92M	8.56M	5.23M	6.98M
EBITDA	30.67M	7.34M	-4.23M	-5.71M	-6.77M	-7.60M
Net Income	7.38M	4.84M	-6.47M	-6.64M	-7.07M	-10.97M
Balance Sheet
Total Assets	66.49M	70.41M	50.68M	65.49M	50.73M	57.57M
Cash, Cash Equivalents and Short-Term Investments	17.96M	14.87M	10.14M	10.27M	7.61M	17.73M
Total Debt	949.00K	4.17M	7.20M	18.55M	12.98M	10.71M
Total Liabilities	18.69M	26.87M	12.74M	25.39M	18.28M	17.83M
Stockholders Equity	46.84M	42.13M	35.55M	34.23M	31.43M	38.47M
Cash Flow
Free Cash Flow	17.39M	6.97M	-3.70M	-7.98M	-11.10M	-6.93M
Operating Cash Flow	17.41M	13.85M	-3.66M	-4.71M	-9.30M	-4.99M
Investing Cash Flow	-6.21M	-6.89M	-4.71M	-12.50M	-3.27M	11.11M
Financing Cash Flow	-3.72M	-2.20M	12.46M	14.44M	2.40M	4.55M

TruFin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRU, the sentiment is Positive. The current price of 119.5 is above the 20-day moving average (MA) of 119.22, above the 50-day MA of 115.23, and above the 200-day MA of 100.36, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 32.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TRU.

TruFin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£46.72M	8.05	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.71M	4.14	15.17%	3.33%	8.91%	94.32%
TRU	73 Outperform	£118.39M	25.60	―	―	203.09%	―
DFCH	72 Outperform	£90.25M	6.74	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LEND	48 Neutral	£4.30M	3.08	―	―	30.78%	―

TruFin Corporate Events

TruFin Expects Strong Financial Performance Following Successful Game Launch

TruFin announced that its subsidiary, Playstack Limited, has successfully launched the game ‘Unbeatable’, leading to financial performance projections for the year exceeding previous expectations. The company anticipates higher revenues, adjusted EBITDA, and PBT, with a stronger year-end cash position. The Board is committed to strategic capital allocation to maximize shareholder returns and is exploring reinvestment and acquisition opportunities.

The most recent analyst rating on (GB:TRU) stock is a Buy with a £128.00 price target. To see the full list of analyst forecasts on TruFin stock, see the GB:TRU Stock Forecast page.

TruFin Completes £4 Million Share Buyback Programme

TruFin plc announced the acquisition of 556,462 of its own ordinary shares from the market, exceeding 50% of the average daily traded volume on the London Stock Exchange over the past 20 trading days. The company intends to cancel these shares as part of its £4 million Share Buyback Programme, which is now complete. This move impacts the total voting rights, which now stand at 98,661,484 ordinary shares, and provides shareholders with a new denominator for calculating their interests under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:TRU) stock is a Buy with a £132.00 price target. To see the full list of analyst forecasts on TruFin stock, see the GB:TRU Stock Forecast page.

TruFin Acquires and Cancels Over 1 Million Shares

TruFin has announced the acquisition of 1,215,000 of its own Ordinary Shares at an average price of 119.00 pence per share, with plans to cancel these shares. This transaction, which exceeded 50% of the average daily trading volume, reflects the company’s strategic decision to manage its share capital and could impact shareholder calculations under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:TRU) stock is a Buy with a £132.00 price target. To see the full list of analyst forecasts on TruFin stock, see the GB:TRU Stock Forecast page.