Trustpilot Group Plc (TRST) AI Stock Analysis

• Market Cap: £932.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 1145.0
• Beta (1Y): 1.62
• Revenue Growth: 18.75%
• EPS Growth: -93.75%
• Country: UK
• Employees: 988
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 407,267,100
• 10 Day Avg. Volume: 2,402,129
• 30 Day Avg. Volume: 1,732,719
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £330.80
• Price Target Upside: 44.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: 246.00p ▲(7.42% Upside)

Trustpilot Group Plc's overall stock score is primarily driven by its strong financial performance, which is offset by technical indicators suggesting potential consolidation and a high P/E ratio indicating overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and customer base, which is crucial for long-term business sustainability and competitive positioning.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and future investments, providing financial flexibility and stability in the long term.

Balance Sheet Stability

A stable balance sheet with manageable leverage ensures financial health, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Net Profit Margin

A moderate net profit margin indicates potential challenges in cost management or pricing power, which could impact long-term profitability and shareholder returns.

Earnings Growth

Negative earnings growth reflects challenges in achieving profitability, which could hinder the company's ability to reinvest in business expansion and innovation.

Equity Position

A decrease in stockholders' equity can weaken financial stability and reduce the company's ability to fund growth initiatives through equity financing.

Trustpilot Group Plc Business Overview & Revenue Model

Company Description

Trustpilot Group plc operates an online review platform for businesses and consumers in the United Kingdom, North America, Europe, and internationally. Its online review platform enables consumers to make purchasing decisions, as well as provides consumers with the opportunity to recommend businesses, products, services, and locations based on their experiences; and businesses to showcase their trustscore. The company also offers software modules for businesses on a software-as-a-service (SaaS) basis. Trustpilot Group plc was founded in 2007 and is based in Copenhagen, Denmark.

How the Company Makes Money

Trustpilot makes money primarily through subscription packages offered to businesses. These packages provide businesses with access to advanced features, such as analytics, review collection tools, and the ability to respond to reviews, all aimed at leveraging customer feedback to enhance business reputation and performance. Additionally, Trustpilot generates revenue from additional services, including advertising and partnerships that allow businesses to gain greater visibility and access to a broader audience. The company may also benefit from strategic partnerships with other digital platforms to enhance its service offerings and expand its market reach.

Trustpilot Group Plc Financial Statement Overview

Summary

Trustpilot Group Plc is showing significant improvement in financial performance with strong revenue growth and improving profitability metrics. The balance sheet is stable with manageable leverage, and cash flow generation is strong, supporting ongoing operations and future growth.

Income Statement

Trustpilot Group Plc demonstrates strong revenue growth with a 19.48% increase from 2023 to 2024. Gross profit margin is robust, indicating effective cost control. However, net profit margin is moderate at 2.96%, suggesting room for improvement in profitability. The positive trend in EBIT and EBITDA margins from negative values in prior years shows improving operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.49 indicates a moderate level of leverage, which is manageable. Stockholders' equity has decreased, impacting the equity ratio. Return on equity is modest at 15.07%, reflecting steady use of equity capital. Overall, the balance sheet shows stability with a healthy cash position.

Cash Flow

Operating cash flow to net income ratio is strong, indicating efficient cash conversion. Free cash flow growth rate is positive, reflecting improved cash management and operational efficiency. The company is generating healthy free cash flow relative to net income, supporting future investments and debt servicing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	210.75M	176.36M	148.93M	131.44M	101.98M
Gross Profit	171.63M	145.45M	122.00M	106.79M	83.92M
EBITDA	17.70M	8.92M	-6.67M	-16.16M	-5.42M
Net Income	6.23M	7.11M	-14.64M	-25.89M	-12.28M
Balance Sheet
Total Assets	144.52M	156.37M	124.78M	129.04M	85.23M
Cash, Cash Equivalents and Short-Term Investments	68.94M	91.52M	73.46M	93.18M	50.39M
Total Debt	20.11M	22.86M	24.68M	13.06M	29.55M
Total Liabilities	103.13M	93.26M	78.95M	69.59M	78.23M
Stockholders Equity	41.39M	63.11M	45.84M	59.45M	7.00M
Cash Flow
Free Cash Flow	19.74M	17.32M	-10.10M	-9.66M	2.13M
Operating Cash Flow	29.36M	20.88M	-2.70M	-5.44M	7.18M
Investing Cash Flow	-9.62M	-3.56M	-7.40M	-4.22M	-4.98M
Financing Cash Flow	-40.77M	-2.95M	-1.90M	56.39M	9.14M

Trustpilot Group Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 229.00
• 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 GB:TRST, the sentiment is Neutral. The current price of 229 is above the 20-day moving average (MA) of 209.13, below the 50-day MA of 230.33, and below the 200-day MA of 258.86, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TRST.

Trustpilot Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATG	67 Neutral	401.51M	21.04	0.00%	―	1.69%	88.69%
GBG	62 Neutral	545.26M	67.16	1.41%	1.98%	1.94%	0.00%
TRST	61 Neutral	£932.64M	1,145.00	2.53%	―	18.75%	-93.75%
BIG	61 Neutral	254.48M	103.06	1.89%	―	-8.90%	-85.97%
NCC	59 Neutral	445.61M	-18.22	0.00%	2.06%	0.00%	0.00%
PBEE	57 Neutral	346.22M	-76.44	-9.13%	―	29.58%	17.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%