TrueCar (TRUE) AI Stock Analysis

• Market Cap: $171.85M
• Dividend Yield: N/A
• Average Volume (3M): 224.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 10.18%
• EPS Growth: 1.47%
• Country: US
• Employees: 348
• Sector: Communication Services
• Sector Strength: 73
• Industry: Internet Content & Information
• EPS (TTM): -0.08
• Shares Outstanding: 87,676,370
• 10 Day Avg. Volume: 163,727
• 30 Day Avg. Volume: 224,555
• PEG Ratio: <0.01
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.78
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.55
• Enterprise Value/Ebitda: -1.47
• 1Y Price Target: $2.13
• Price Target Upside: 8.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $2.00 ▲(2.04%Upside)

TrueCar's stock score reflects a mix of financial challenges and moderate technical momentum. The financial performance is the most significant factor, with liquidity issues and negative cash flow trends weighing heavily. The earnings call provides a more optimistic view with revenue growth and strategic initiatives, but valuation challenges and market uncertainties remain.

Positive Factors

Dealer Revenue

Dealer revenue grew 13% year-over-year in Q1, driven by increases in franchise dealer revenue and growth from TrueCar Wholesale Solutions.

Digital Retail Platform

TRUE announced their continued progress in 4Q on digital retail platform TrueCar+, focusing on expanding the TC+ purchasing experience, integrating AI-powered fraud prevention tools, and deepening integration with dealer management systems.

Unit Sales Growth

New unit sales volume saw a significant increase of 23% year-over-year, substantially outpacing the industry’s 7% growth in new vehicle retail sales.

Negative Factors

Market Uncertainty

Uncertainty in the US auto market has led to a pullback on growth plans for TrueCar.

Revenue and Profitability

TRUE’s 4Q24 results were a miss on revenue and EBITDA, with the top-line miss driven across both segments, including Dealer marketplace and OEM Incentives.

Tariffs Impact

The company is withdrawing its outlook for accelerated growth and margin expansion due to uncertainty from newly implemented automotive sector tariffs.

TrueCar Business Overview & Revenue Model

Company Description

TrueCar, Inc. is a digital automotive marketplace that connects consumers with certified dealers for new and used car purchases. The company operates in the technology and automotive sectors, providing an online platform where buyers can research pricing information and access a network of dealerships offering transparent pricing. TrueCar aims to empower car buyers by offering data-driven insights into vehicle pricing and facilitating a streamlined car purchasing experience.

How the Company Makes Money

TrueCar generates revenue primarily through fees paid by participating dealers within its network. These dealers pay TrueCar for every vehicle sold to a customer who was introduced through TrueCar's platform. Additionally, TrueCar offers subscription services to dealers for enhanced visibility and lead generation on its platform. The company may also earn revenue from advertising and data analytics services provided to automotive manufacturers and other industry stakeholders. TrueCar's strategic partnerships with organizations such as insurance companies and financial institutions further extend its reach and enhance its market presence, contributing to its revenue streams.

TrueCar Financial Statement Overview

Summary

TrueCar's financial performance shows challenges with ongoing losses despite slight revenue growth. The balance sheet indicates low leverage and financial flexibility, but negative cash flow trends point to operational inefficiencies and liquidity constraints.

Income Statement

TrueCar's TTM data shows a slight revenue increase to $179M but remains unprofitable with a net loss of $35M, reflecting a challenging margin environment. The TTM gross profit margin is strong at 85.3%, but negative EBIT and EBITDA margins indicate significant operational challenges. Revenue growth over the past year is modest at 2.1%, showing slight recovery but not enough to offset persistent losses.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.10, indicating low leverage and financial flexibility. The equity ratio of 76.6% suggests a strong capital structure. However, declining stockholders' equity and total assets over recent years pose potential risks to long-term stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow in TTM, indicating liquidity issues. Free cash flow declined significantly, and the company faces challenges in converting operational performance into cash. The free cash flow to net income ratio is negative, reflecting difficulties in generating cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.60M	158.71M	161.52M	231.70M	278.68M
Gross Profit	149.21M	142.85M	145.31M	209.46M	257.13M
EBITDA	-18.17M	-35.79M	-45.46M	-17.59M	6.11M
Net Income	-31.05M	-49.77M	-118.69M	-38.37M	-19.84M
Balance Sheet
Total Assets	159.69M	204.32M	251.53M	387.67M	458.06M
Cash, Cash Equivalents and Short-Term Investments	111.83M	136.96M	175.52M	245.22M	273.31M
Total Debt	11.28M	14.41M	23.01M	31.55M	36.74M
Total Liabilities	41.55M	44.10M	54.26M	57.88M	74.13M
Stockholders Equity	118.14M	160.22M	197.27M	329.79M	383.93M
Cash Flow
Free Cash Flow	-159.00K	-34.22M	-40.82M	3.50M	28.84M
Operating Cash Flow	7.70M	-22.41M	-29.14M	14.19M	39.12M
Investing Cash Flow	-7.86M	-11.81M	-8.03M	-4.21M	101.90M
Financing Cash Flow	-24.97M	-4.33M	-32.53M	-38.09M	-49.24M

TrueCar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUE, the sentiment is Positive. The current price of 1.96 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.72, and below the 200-day MA of 2.67, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRUE.

TrueCar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	75 Outperform	$929.58M	24.98	32.17%	―	113.43%	―
OPRA	73 Outperform	$1.54B	23.33	9.18%	4.53%	26.71%	-23.67%
ATHM	72 Outperform	$3.47B	15.50	6.55%	0.24%	-5.77%	-15.07%
GENI	69 Neutral	$2.71B	―	-7.25%	―	22.90%	49.04%
CARG	67 Neutral	$3.31B	94.02	7.98%	―	0.63%	15.34%
Sector *	62 Neutral	$42.09B	-1.57	-12.06%	2.81%	2.10%	-71.01%
TRUE	55 Neutral	$171.85M	―	-26.46%	―	10.18%	1.47%

TrueCar Corporate Events

TrueCar Elects New Director at Annual Meeting

On May 22, 2025, TrueCar held its 2025 Annual Meeting of Stockholders, where proxies representing approximately 79% of the shares entitled to vote were present. During the meeting, Faye M. Iosotaluno was elected as a Class II director, PricewaterhouseCoopers LLP was ratified as the independent public accounting firm for 2025, and the executive officer compensation was approved.

The most recent analyst rating on (TRUE) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on TrueCar stock, see the TRUE Stock Forecast page.