Truecar Stock Buy Hold or Sell Recommendation

TRUE Stock  USD 4.14  0.09  2.13%   
Given the investment horizon of 90 days and your typical level of risk aversion, our recommendation regarding TrueCar is 'Strong Buy'. Macroaxis provides TrueCar buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TrueCar positions.
  
Check out TrueCar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade TrueCar Stock refer to our How to Trade TrueCar Stock guide.
Note, we conduct extensive research on individual companies such as TrueCar and provide practical buy, sell, or hold advice based on investors' constraints. TrueCar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.

Execute TrueCar Buy or Sell Advice

The TrueCar recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on TrueCar. Macroaxis does not own or have any residual interests in TrueCar or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute TrueCar's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell TrueCarBuy TrueCar
Strong Buy

Market Performance

GoodDetails

Volatility

Moderately volatileDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon TrueCar has a Risk Adjusted Performance of 0.1832, Jensen Alpha of 0.4316, Total Risk Alpha of 0.2031, Sortino Ratio of 0.2082 and Treynor Ratio of 0.3384
We provide advice to complement the current expert consensus on TrueCar. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure TrueCar is not overpriced, please validate all TrueCar fundamentals, including its ebitda, earnings per share, current liabilities, as well as the relationship between the debt to equity and market capitalization . Given that TrueCar has a price to earning of 3.49 X, we advise you to double-check TrueCar market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

TrueCar Trading Alerts and Improvement Suggestions

The company reported the previous year's revenue of 158.71 M. Net Loss for the year was (49.77 M) with profit before overhead, payroll, taxes, and interest of 145.32 M.
TrueCar currently holds about 199.68 M in cash with (22.41 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.2.
TrueCar has a poor financial position based on the latest SEC disclosures
Over 81.0% of the company shares are owned by institutional investors
Latest headline from prnewswire.com: TRUE Rx HEALTH STRATEGISTS LAUNCHES NEW DIABETES MANAGEMENT PROGRAM FOR EMPLOYERS

TrueCar Returns Distribution Density

The distribution of TrueCar's historical returns is an attempt to chart the uncertainty of TrueCar's future price movements. The chart of the probability distribution of TrueCar daily returns describes the distribution of returns around its average expected value. We use TrueCar price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of TrueCar returns is essential to provide solid investment advice for TrueCar.
Mean Return
0.68
Value At Risk
-3.71
Potential Upside
6.07
Standard Deviation
2.97
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of TrueCar historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

TrueCar Stock Institutional Investors

Shares
Acuitas Investments, Llc2024-09-30
1.1 M
D. E. Shaw & Co Lp2024-09-30
835.1 K
Springbok Capital Management, Llc2024-09-30
785.9 K
Northern Trust Corp2024-09-30
696.9 K
Acadian Asset Management Llc2024-06-30
671.2 K
Bank Of Montreal2024-06-30
416.1 K
Bmo Capital Markets Corp.2024-06-30
416.1 K
Fmr Inc2024-09-30
380.6 K
State Of Wyoming2024-06-30
370.9 K
Caledonia (private) Investments Pty Ltd2024-09-30
17.8 M
United Services Automobile Association2024-06-30
M
Note, although TrueCar's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

TrueCar Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(2.5M)840K(8.7M)(8.5M)(7.6M)(7.2M)
Change In Cash(14.6M)91.8M(28.1M)(69.7M)(38.6M)(36.6M)
Free Cash Flow9.1M28.8M3.5M(40.8M)(34.2M)(32.5M)
Depreciation31.6M25.8M20.6M20.5M20.7M20.5M
Other Non Cash Items4.1M25.1M7.8M59.2M3.0M2.8M
Capital Expenditures11.3M10.3M10.7M11.7M11.8M11.2M
Net Income(54.9M)(19.8M)(38.3M)(118.7M)(49.8M)(52.3M)
End Period Cash Flow181.5M273.3M245.2M175.5M137.0M156.7M
Investments(23.2M)101.9M(4.2M)15.7M(12.8M)(12.2M)
Change Receivables1.4M2.3M15.7M2.2M2.5M2.7M
Change To Netincome42.3M47.4M28.3M74.6M85.7M45.3M

TrueCar Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to TrueCar or Interactive Media & Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that TrueCar's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a TrueCar stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.43
β
Beta against Dow Jones1.98
σ
Overall volatility
2.96
Ir
Information ratio 0.19

TrueCar Volatility Alert

TrueCar currently demonstrates below-average downside deviation. It has Information Ratio of 0.19 and Jensen Alpha of 0.43. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure TrueCar's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact TrueCar's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

TrueCar Fundamentals Vs Peers

Comparing TrueCar's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze TrueCar's direct or indirect competition across all of the common fundamentals between TrueCar and the related equities. This way, we can detect undervalued stocks with similar characteristics as TrueCar or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of TrueCar's fundamental indicators could also be used in its relative valuation, which is a method of valuing TrueCar by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare TrueCar to competition
FundamentalsTrueCarPeer Average
Return On Equity-0.19-0.31
Return On Asset-0.0622-0.14
Profit Margin(0.16) %(1.27) %
Operating Margin(0.16) %(5.51) %
Current Valuation264.87 M16.62 B
Shares Outstanding86.96 M571.82 M
Shares Owned By Insiders10.19 %10.09 %
Shares Owned By Institutions81.33 %39.21 %
Number Of Shares Shorted847.35 K4.71 M
Price To Earning3.49 X28.72 X
Price To Book2.87 X9.51 X
Price To Sales2.16 X11.42 X
Revenue158.71 M9.43 B
Gross Profit145.32 M27.38 B
EBITDA(32.05 M)3.9 B
Net Income(49.77 M)570.98 M
Cash And Equivalents199.68 M2.7 B
Cash Per Share2.20 X5.01 X
Total Debt14.41 M5.32 B
Debt To Equity0.09 %48.70 %
Current Ratio7.20 X2.16 X
Book Value Per Share1.45 X1.93 K
Cash Flow From Operations(22.41 M)971.22 M
Short Ratio2.85 X4.00 X
Earnings Per Share(0.29) X3.12 X
Price To Earnings To Growth14.22 X4.89 X
Target Price4.75
Number Of Employees32418.84 K
Beta1.83-0.15
Market Capitalization367.83 M19.03 B
Total Asset204.32 M29.47 B
Retained Earnings(562.3 M)9.33 B
Working Capital134.1 M1.48 B
Note: Disposition of 1780 shares by Jay Ku of TrueCar at 2.77 subject to Rule 16b-3 [view details]

TrueCar Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as TrueCar . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About TrueCar Buy or Sell Advice

When is the right time to buy or sell TrueCar? Buying financial instruments such as TrueCar Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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When determining whether TrueCar is a strong investment it is important to analyze TrueCar's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact TrueCar's future performance. For an informed investment choice regarding TrueCar Stock, refer to the following important reports:
Check out TrueCar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade TrueCar Stock refer to our How to Trade TrueCar Stock guide.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TrueCar. If investors know TrueCar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TrueCar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.29)
Revenue Per Share
1.874
Quarterly Revenue Growth
0.131
Return On Assets
(0.06)
Return On Equity
(0.19)
The market value of TrueCar is measured differently than its book value, which is the value of TrueCar that is recorded on the company's balance sheet. Investors also form their own opinion of TrueCar's value that differs from its market value or its book value, called intrinsic value, which is TrueCar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TrueCar's market value can be influenced by many factors that don't directly affect TrueCar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TrueCar's value and its price as these two are different measures arrived at by different means. Investors typically determine if TrueCar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TrueCar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.