TruGolf Holdings (TRUG) AI Stock Analysis

• Market Cap: $3.34M
• Dividend Yield: N/A
• Average Volume (3M): 475.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 71
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -4.87
• Shares Outstanding: 2,386,402
• 10 Day Avg. Volume: 621,682
• 30 Day Avg. Volume: 475,823
• PEG Ratio: 1.18
• Price to Book (P/B): -84.16
• Price to Sales (P/S): 17.87
• P/FCF Ratio: -96.86
• Enterprise Value/Market Cap: -1.24
• Enterprise Value/Revenue: -0.20
• Enterprise Value/Gross Profit: -0.32
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -7.56
• Revenue Forecast (FY): $22.59M

• Rating: 38 Underperform
• Price Target: $1.00 ▼(-8.26% Downside)

TruGolf Holdings' stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and cash flow issues. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. The valuation is also concerning, with a negative P/E ratio and no dividend yield, reflecting significant financial distress.

Positive Factors

Business Model Strength

TruGolf's direct sales model and partnerships with golf courses and training facilities provide a strong foundation for market reach and customer base expansion.

Product Offering

Innovative and diverse product offerings enhance user experience and cater to both amateur and professional golfers, supporting long-term demand.

Recurring Revenue

Recurring revenue from subscription services provides a steady income stream, enhancing financial stability and predictability.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining market share and could impact long-term profitability and business sustainability.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests liquidity issues, which can hinder operations and strategic initiatives, posing a threat to long-term viability.

TruGolf Holdings Business Overview & Revenue Model

Company Description

TruGolf Holdings (TRUG) is a leading company in the golf technology sector, specializing in the development and manufacturing of advanced golf simulators and related software. The company focuses on enhancing the golfing experience through innovative products that cater to both amateur and professional golfers. TruGolf's core offerings include high-fidelity golf simulation systems, instructional software, and performance analysis tools, all designed to provide users with an immersive and accurate golfing experience.

How the Company Makes Money

TruGolf Holdings generates revenue primarily through the sale of its golf simulators and software products. The company operates on a direct sales model, selling its products through its website and authorized distributors. Additionally, TruGolf has established partnerships with golf courses and training facilities, which further expands its market reach and customer base. Subscription services for software updates and performance analytics also contribute to recurring revenue. Moreover, TruGolf engages in B2B collaborations with golf equipment manufacturers and retailers, enhancing its product offerings and driving additional sales through bundled packages and promotions.

TruGolf Holdings Financial Statement Overview

Summary

TruGolf Holdings faces significant financial challenges. The income statement shows declining revenue and persistent losses, while the balance sheet reveals high leverage and negative equity in past periods. Cash flow issues further exacerbate the company's financial instability. Despite a decent gross profit margin, the overall financial health is weak, with substantial risks due to high debt and ongoing losses.

Income Statement

TruGolf Holdings' income statement reveals significant challenges. The company has experienced a decline in revenue growth, with a negative growth rate of -9.4% in the TTM. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating ongoing losses. The gross profit margin remains relatively strong at 64.1%, suggesting some efficiency in production or service delivery, but overall profitability is severely impacted by high operating expenses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.93, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio is not available, limiting a full assessment of asset financing. The company's financial stability is compromised by high leverage and negative equity in previous periods.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, with a declining free cash flow growth rate of -11.9% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges in covering net losses. Despite a positive free cash flow to net income ratio, the overall cash flow situation is concerning, reflecting liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.54M	21.86M	20.58M	20.23M	21.25M	0.00
Gross Profit	13.07M	14.59M	12.05M	13.21M	15.47M	0.00
EBITDA	-10.19M	-1.22M	-8.60M	858.58K	6.38M	-59.40K
Net Income	-19.13M	-8.80M	-10.28M	-956.84K	6.19M	-59.40K
Balance Sheet
Total Assets	22.98M	17.14M	15.77M	14.59M	14.89M	537.57K
Cash, Cash Equivalents and Short-Term Investments	11.44M	10.88M	5.78M	9.66M	10.71M	500.07K
Total Debt	5.85M	9.12M	9.25M	4.34M	3.60M	500.00K
Total Liabilities	16.73M	21.78M	19.69M	18.02M	18.04M	546.96K
Stockholders Equity	6.26M	-4.64M	-3.92M	-3.43M	-3.16M	-9.39K
Cash Flow
Free Cash Flow	-10.75M	-5.73M	-6.26M	750.45K	4.50M	-50.03K
Operating Cash Flow	-9.05M	-4.00M	-6.13M	791.88K	4.52M	-50.03K
Investing Cash Flow	215.08K	741.14K	-2.62M	-41.43K	-23.00K	0.00
Financing Cash Flow	14.91M	8.74M	4.50M	-1.80M	-810.45K	550.10K

TruGolf Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUG, the sentiment is Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 2.03, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUG.

TruGolf Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MSGM	55 Neutral	$15.54M	29.24	44.93%	―	11.38%	-94.39%
GAME	46 Neutral	$46.26M	―	-52.37%	―	―	―
TRUG	38 Underperform	$3.34M	―	―	―	―	―
BHAT	37 Underperform	$9.42M	-0.08	―	―	-74.59%	86.00%