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VROOM INC (VRM) Stock Fundamental Analysis

NASDAQ:VRM - Nasdaq - US92918V2088 - Common Stock - Currency: USD

24.643  -6.36 (-20.51%)

Fundamental Rating

1

Overall VRM gets a fundamental rating of 1 out of 10. We evaluated VRM against 120 industry peers in the Specialty Retail industry. VRM has a bad profitability rating. Also its financial health evaluation is rather negative. VRM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

VRM had negative earnings in the past year.
VRM had a negative operating cash flow in the past year.
VRM had negative earnings in each of the past 5 years.
In the past 5 years VRM always reported negative operating cash flow.
VRM Yearly Net Income VS EBIT VS OCF VS FCFVRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 -100M -200M -300M -400M -500M

1.2 Ratios

With a Return On Assets value of -24.02%, VRM is not doing good in the industry: 84.43% of the companies in the same industry are doing better.
The Return On Equity of VRM (-5762.74%) is worse than 82.79% of its industry peers.
Industry RankSector Rank
ROA -24.02%
ROE -5762.74%
ROIC N/A
ROA(3y)-22.79%
ROA(5y)-25.81%
ROE(3y)-144.96%
ROE(5y)-108.63%
ROIC(3y)N/A
ROIC(5y)N/A
VRM Yearly ROA, ROE, ROICVRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 -50 -100 -150 -200 -250

1.3 Margins

VRM has a Gross Margin of 19.04%. This is amonst the worse of the industry: VRM underperforms 81.15% of its industry peers.
In the last couple of years the Gross Margin of VRM has grown nicely.
VRM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 19.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.97%
GM growth 5Y20.6%
VRM Yearly Profit, Operating, Gross MarginsVRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30 -40

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2. Health

2.1 Basic Checks

VRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
VRM has more shares outstanding than it did 1 year ago.
VRM has more shares outstanding than it did 5 years ago.
VRM has a worse debt/assets ratio than last year.
VRM Yearly Shares OutstandingVRM Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 500K 1M 1.5M
VRM Yearly Total Debt VS Total AssetsVRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

VRM has an Altman-Z score of -3.07. This is a bad value and indicates that VRM is not financially healthy and even has some risk of bankruptcy.
VRM has a worse Altman-Z score (-3.07) than 86.07% of its industry peers.
A Debt/Equity ratio of 224.47 is on the high side and indicates that VRM has dependencies on debt financing.
VRM's Debt to Equity ratio of 224.47 is on the low side compared to the rest of the industry. VRM is outperformed by 82.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 224.47
Debt/FCF N/A
Altman-Z -3.07
ROIC/WACCN/A
WACC6.35%
VRM Yearly LT Debt VS Equity VS FCFVRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

2.3 Liquidity

A Current Ratio of 0.19 indicates that VRM may have some problems paying its short term obligations.
VRM has a Current ratio of 0.19. This is amonst the worse of the industry: VRM underperforms 99.18% of its industry peers.
A Quick Ratio of 0.19 indicates that VRM may have some problems paying its short term obligations.
The Quick ratio of VRM (0.19) is worse than 88.52% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
VRM Yearly Current Assets VS Current LiabilitesVRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

The earnings per share for VRM have decreased strongly by -32.83% in the last year.
VRM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -55.46%.
Measured over the past years, VRM shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)-32.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.68%
Revenue 1Y (TTM)-55.46%
Revenue growth 3Y-13.03%
Revenue growth 5Y0.87%
Sales Q2Q%-91.44%

3.2 Future

The Earnings Per Share is expected to decrease by -2.45% on average over the next years.
VRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.63% yearly.
EPS Next Y2.7%
EPS Next 2Y-2.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year21.54%
Revenue Next 2Y23.63%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VRM Yearly Revenue VS EstimatesVRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
VRM Yearly EPS VS EstimatesVRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 -50 -100 -150 -200

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4. Valuation

4.1 Price/Earnings Ratio

VRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year VRM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VRM Price Earnings VS Forward Price EarningsVRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VRM Per share dataVRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100

4.3 Compensation for Growth

VRM's earnings are expected to decrease with -2.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.45%
EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for VRM!.
Industry RankSector Rank
Dividend Yield N/A

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VROOM INC

NASDAQ:VRM (2/21/2025, 8:00:01 PM)

24.643

-6.36 (-20.51%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-08 2024-11-08/amc
Earnings (Next)N/A N/A
Inst Owners27.49%
Inst Owner Change-70.83%
Ins Owners452.94%
Ins Owner Change0%
Market Cap44.85M
Analysts45
Price Target81.6 (231.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-86.18%
Min Revenue beat(2)-92.53%
Max Revenue beat(2)-79.83%
Revenue beat(4)1
Avg Revenue beat(4)-66.27%
Min Revenue beat(4)-93.42%
Max Revenue beat(4)0.68%
Revenue beat(8)1
Avg Revenue beat(8)-38.79%
Revenue beat(12)3
Avg Revenue beat(12)-28.76%
Revenue beat(16)6
Avg Revenue beat(16)-19.76%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.14
P/FCF N/A
P/OCF N/A
P/B 9.58
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-151.94
EYN/A
EPS(NY)-188.26
Fwd EYN/A
FCF(TTM)-103.47
FCFYN/A
OCF(TTM)-100.52
OCFYN/A
SpS170.72
BVpS2.57
TBVpS-58.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -24.02%
ROE -5762.74%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 19.04%
FCFM N/A
ROA(3y)-22.79%
ROA(5y)-25.81%
ROE(3y)-144.96%
ROE(5y)-108.63%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.97%
GM growth 5Y20.6%
F-Score1
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 224.47
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 16.24%
Cap/Sales 1.73%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z -3.07
F-Score1
WACC6.35%
ROIC/WACCN/A
Cap/Depr(3y)103.89%
Cap/Depr(5y)122.48%
Cap/Sales(3y)1.26%
Cap/Sales(5y)0.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.68%
EPS Next Y2.7%
EPS Next 2Y-2.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-55.46%
Revenue growth 3Y-13.03%
Revenue growth 5Y0.87%
Sales Q2Q%-91.44%
Revenue Next Year21.54%
Revenue Next 2Y23.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.31%
OCF growth 3YN/A
OCF growth 5YN/A