Trainline: a cheap cash machine for investors

Trainline’s shares have slumped owing to concerns about growth, but the sell-off seems overdone

Trainline App As Company Announces £75 million Share Buyback
(Image credit: Chris J. Ratcliffe/Bloomberg via Getty Images)

When Trainline (LSE: TRN) published its full-year results on 7 May, the market’s reaction was visceral. The shares plunged nearly 10% on the day, taking losses over the past year to 25%. The performance year-to-date is far worse. Since the shares hit a multi-year high of 415p in December, the stock has plunged by more than 40%. Investors, it seems, are really worried about two things.

Firstly, international growth, which has flatlined over the past year, and a potential government competitor in the firm’s largest market, the UK.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.