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TruGolf Holdings (TRUG)
NASDAQ:TRUG
US Market

TruGolf Holdings (TRUG) AI Stock Analysis

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TruGolf Holdings

(NASDAQ:TRUG)

40Underperform
TruGolf Holdings presents a challenging financial outlook with negative equity and profitability issues, which significantly impact its stock score. Technical indicators suggest a bearish trend, and the absence of traditional valuation metrics further highlights financial concerns. Improved cash flow is a positive aspect but insufficient to offset other risks.

TruGolf Holdings (TRUG) vs. S&P 500 (SPY)

TruGolf Holdings Business Overview & Revenue Model

Company DescriptionTruGolf Holdings (TRUG) is a company specializing in the development and manufacturing of state-of-the-art golf simulation technology. Operating within the sports technology sector, TruGolf is renowned for its advanced golf simulators, which are designed to deliver a realistic golfing experience. These simulators are used by golf enthusiasts, professional golfers, and golf instructors around the world, providing them with the tools necessary to improve their game regardless of weather conditions or location.
How the Company Makes MoneyTruGolf Holdings (TRUG) generates revenue primarily through the sale of its golf simulator products. The company's key revenue streams include direct sales to consumers, partnerships with golf training facilities, and collaborations with entertainment venues that incorporate golf simulators as part of their attractions. Additionally, TruGolf may generate income through software licensing, offering a range of virtual golf courses and analytical tools that enhance the user experience. The company’s earnings are also bolstered by after-sales services, maintenance contracts, and potential upgrades that provide ongoing support and enhancements to existing customers.

TruGolf Holdings Financial Statement Overview

Summary
TruGolf Holdings shows signs of revenue growth but faces significant profitability challenges. The company is heavily leveraged with negative equity, posing financial risks. Improved cash flows are a positive sign, but overall stability and profitability need enhancement for long-term viability.
Income Statement
40
Negative
TruGolf Holdings has experienced modest revenue growth of 6.5% from the previous year. However, the company struggles with profitability, reflected in negative EBIT and net income margins. The gross profit margin stands at 59.1% TTM, indicating a strong ability to cover costs of goods sold, but high operating expenses are affecting overall profitability.
Balance Sheet
25
Negative
The company's balance sheet shows a concerning negative equity, leading to a high debt-to-equity ratio. The total liabilities exceed assets, indicating financial instability. The equity ratio is negative, emphasizing a leveraged financial position with potential solvency risks.
Cash Flow
50
Neutral
TruGolf Holdings shows improvement in operating cash flow, which has turned positive TTM compared to previous negative figures. Free cash flow has also improved, indicating better cash management. However, free cash flow to net income remains negative due to substantial net losses.
Breakdown
TTMDec 2023Dec 2022Dec 2021Mar 2021
Income StatementTotal Revenue
21.92M20.58M20.23M21.25M0.00
Gross Profit
12.95M12.05M13.21M15.98M0.00
EBIT
-1.27M-8.66M-2.17M-409.91K-59.40K
EBITDA
-531.17K-8.60M-2.17M-409.91K-59.40K
Net Income Common Stockholders
-3.29M-10.28M-400.23K-414.05K-59.40K
Balance SheetCash, Cash Equivalents and Short-Term Investments
977.20K5.78M9.76M128.64M500.07K
Total Assets
129.12M15.77M9.78M128.95M537.57K
Total Debt
500.00K9.25M1.86M500.00K500.00K
Net Debt
-477.20K5.95M1.27M-377.10K-67.00
Total Liabilities
4.95M19.69M7.22M4.96M546.96K
Stockholders Equity
124.17M-3.92M2.55M123.99M-9.39K
Cash FlowFree Cash Flow
970.99K-6.26M-1.08M-720.86K-50.03K
Operating Cash Flow
2.98M-6.13M-1.04M-697.87K-50.03K
Investing Cash Flow
-2.08M-2.62M120.42M-127.77M0.00
Financing Cash Flow
865.76K4.50M-119.67M128.84M550.10K

TruGolf Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.39
Price Trends
50DMA
0.49
Negative
100DMA
0.52
Negative
200DMA
0.81
Negative
Market Momentum
MACD
-0.03
Positive
RSI
42.93
Neutral
STOCH
41.26
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 0.39 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.49, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 41.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUG.

TruGolf Holdings Risk Analysis

TruGolf Holdings disclosed 87 risk factors in its most recent earnings report. TruGolf Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TruGolf Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$40.53B22.8646.21%10.84%76.07%
70
Outperform
$3.98B19.7326.30%1.29%3.15%15.44%
NKNKE
68
Neutral
$108.83B22.7334.67%2.04%-4.77%-5.99%
64
Neutral
$291.16M-1.53%-45.70%-115.77%
63
Neutral
$13.85B10.479.22%4.23%17.31%-7.79%
VFVFC
58
Neutral
$6.75B-16.13%2.15%-8.42%57.91%
40
Underperform
$10.81M32.18%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRUG
TruGolf Holdings
0.39
-1.04
-72.73%
GOLF
Acushnet Holdings
64.40
3.17
5.18%
LULU
Lululemon Athletica
309.68
-160.33
-34.11%
NKE
Nike
72.64
-25.78
-26.19%
VFC
VF
16.30
2.00
13.99%
MCFT
MasterCraft Boat Holdings
17.17
-3.67
-17.61%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.