Trucept (TREP) AI Stock Analysis

• Market Cap: $1.32M
• Dividend Yield: N/A
• Average Volume (3M): 54.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 3.03%
• EPS Growth: -186.99%
• Country: US
• Employees: 28
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.01
• Shares Outstanding: 52,762,123
• 10 Day Avg. Volume: 110,200
• 30 Day Avg. Volume: 54,552
• PEG Ratio: -0.08
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 2.12
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: -2.18
• 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: 38 Underperform
• Price Target: $0.01 ▼(-60.00% Downside)

The score is driven primarily by very weak financial performance (TTM losses, sharp margin compression, a large swing to cash burn, and a weakened capital structure). Technicals reinforce the risk with a clear downtrend and negative momentum, while valuation is not supportive given negative earnings and no dividend yield.

Positive Factors

M&A-led holding company model

Trucept's stated strategy to build operating subsidiaries via acquisitions is a durable growth lever: it can diversify revenue, add customer relationships, and scale shared services over months. Successful M&A execution can materially strengthen long-term cash generation and market reach.

Historic multi-year profitability

The company produced solid profitability across multiple prior years, indicating an underlying business model capable of generating positive margins. This track record suggests operational levers exist to restore earnings if revenue stabilizes and cost structure is managed.

Modest absolute debt in dollars

Total debt is modest in absolute terms, providing structural flexibility: lower interest burden and room to access capital or refinance. This affords a longer runway to execute turnarounds or acquisitions without immediate high fixed financing costs.

Negative Factors

TTM net loss and margin compression

A reversal to a TTM net loss and meaningful gross-margin decline is a durable risk: sustained margin compression erodes profitability, limits reinvestment, and damages return metrics. If persistent, it impairs the company's ability to rebuild equity and fund growth organically.

Severe negative operating cash flow

A roughly $17.2M cash burn on a TTM basis is a structural red flag: prolonged negative operating and free cash flow forces reliance on external financing, increases dilution or refinancing risk, and constrains investment in growth or acquisition integration.

Weakened capital structure (rising leverage)

A jump in debt-to-equity from ~0.10 to ~1.47 and a sharp equity decline materially raise financial risk. Higher leverage reduces flexibility, raises cost of capital, and limits strategic optionality for acquisitions or downturns, increasing long-term solvency concerns.

Trucept Business Overview & Revenue Model

Company Description

True solutions, today and tomorrow: Trucept Inc. helps organizations focus on growing their business. With a dedicated suite of powerful tools and services designed to put business owners in charge of running their businesses and increasing efficiency, Trucept tackles a variety of important administrative needs and provides a host of value-added advantages. For more information, call 858-798-1620 or visit https://truceptservices.com/.

How the Company Makes Money

Trucept makes money by offering a variety of business services that are critical to the operational success of its clients. Its revenue model is based on service fees charged to companies for payroll processing, human resource management, and employee benefits administration. Trucept also earns money from consulting services, helping clients improve efficiency and compliance within their operations. Key revenue streams include recurring fees for ongoing services, such as payroll and benefits administration, as well as one-time fees for consulting projects. Additionally, Trucept may have partnerships with other service providers or software companies to enhance their offerings, though specific partnerships are not detailed.

Trucept Financial Statement Overview

Summary

Financials are very weak TTM: profitability reversed to a net loss with significant margin compression, equity declined sharply with debt-to-equity rising to ~1.47, and operating/free cash flow swung to deep negative (~-$17.2M), increasing near-term liquidity and execution risk.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp profitability reversal: revenue is slightly down versus the prior year, gross margin fell meaningfully (from ~64% in 2024 to ~47% TTM), and the company moved from a positive net margin in 2024 (~5.7%) to a net loss TTM (~-6.3%). While the business delivered solid profitability in several prior annual periods (2021–2024), the latest TTM loss and margin compression materially weaken earnings quality and near-term outlook.

Balance Sheet

Leverage looks modest in absolute dollars (TTM total debt is low), but the capital structure weakened significantly in the latest period: equity dropped sharply and debt-to-equity rose to ~1.47 TTM (vs ~0.10 in 2024), alongside a deeply negative return on equity TTM due to losses. Earlier years showed stronger equity cushions and generally low leverage, but the latest step-down in equity and profitability is a clear balance-sheet risk signal.

Cash Flow

Cash generation deteriorated substantially TTM (Trailing-Twelve-Months): operating cash flow and free cash flow are both deeply negative (around -$17.2M), a major swing from positive operating/free cash flow in 2024. The magnitude of cash burn, combined with the shift to net losses, raises near-term funding and liquidity risk if this run-rate persists, even though some earlier years also showed volatility in cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.64M	22.99M	18.32M	18.31M	17.58M	12.29M
Gross Profit	10.65M	14.83M	12.21M	13.75M	9.31M	6.53M
EBITDA	-669.00K	1.76M	1.56M	3.71M	1.81M	-157.73K
Net Income	-1.43M	1.31M	1.56M	1.52M	1.65M	1.08M
Balance Sheet
Total Assets	7.59M	7.98M	43.20M	25.94M	31.37M	29.95M
Cash, Cash Equivalents and Short-Term Investments	139.00K	3.12M	2.29M	123.00K	67.86K	33.47K
Total Debt	196.81K	155.66K	197.41K	0.00	3.70M	4.01M
Total Liabilities	7.45M	6.47M	22.49M	6.94M	14.31M	14.53M
Stockholders Equity	133.85K	1.51M	20.71M	19.00M	17.06M	15.41M
Cash Flow
Free Cash Flow	-17.19M	819.76K	-13.54M	1.98M	2.41M	4.65M
Operating Cash Flow	-17.17M	829.16K	-13.53M	2.01M	2.44M	4.65M
Investing Cash Flow	-25.57K	-1.87K	-644.79K	-31.65K	-27.98K	-158.30K
Financing Cash Flow	17.14M	0.00	16.35M	-1.92M	-2.38M	-4.46M

Trucept Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 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 TREP, the sentiment is Neutral. The current price of 0.03 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 100.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TREP.

Trucept Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	68 Neutral	$152.70M	21.80	11.08%	2.55%	-12.65%	368.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLIK	60 Neutral	$10.83M	―	―	―	―	―
JOB	48 Neutral	$26.42M	-0.75	-51.65%	―	-15.43%	-43.45%
IPDN	44 Neutral	$9.03M	-0.96	-78.12%	―	-7.26%	-1.37%
TREP	38 Underperform	$1.32M	-0.94	-12.86%	―	3.03%	-186.99%