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SFT

Shift TechnologiesNasdaqCM:SFT Stock Report

Market Cap

US$374.8m

7D

-2.9%

1Y

-47.0%

Updated

01 Dec, 2021

Data

Company Financials +
SFT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SFT Stock Overview

Shift Technologies, Inc. provides end-to-end auto ecommerce platform for buying and selling of used cars.

Shift Technologies Competitors

Carvana

NYSE:CVNA

US$50.5b

CarMax

NYSE:KMX

US$22.9b

Lithia Motors

NYSE:LAD

US$8.8b

AutoNation

NYSE:AN

US$8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Shift Technologies
Historical stock prices
Current Share PriceUS$4.61
52 Week HighUS$10.90
52 Week LowUS$4.45
Beta0.44
1 Month Change-32.50%
3 Month Change-41.05%
1 Year Change-47.01%
3 Year Changen/a
5 Year Changen/a
Change since IPO-53.20%

Recent News & Updates

Nov 30

What Happened To Shift Technologies

Shift Technologies reported strong Q3 earnings results. Yet, sellers have taken the stock down 30% post-earnings. The most likely cause of the severe weakness appears to be overhang from an expired lock-up period and the prospect of absorbing a massive percentage of outstanding shares.

Oct 17

Shift Technologies: Significantly Undervalued

The DCF model indicates intrinsic value of $17.9. The company enjoys quite high consumer satisfaction level. The management is successfully improving margins and is expected to generate positive earnings in upcoming years.

Jul 29

Shift: Shifts Gears Fast But Let's Connect The Dots First

The company's digital and inventory health remain strong, with a large room for improvement. Undoubtedly, growth and operational scale are the catalysts for improving margins and positive cash flow generation. Despite the unpredictability of cash flows and the reliance on external parties for financing, the overall market's and company's outlook are optimistic. SFT is the cheapest 'vehicle' to profit from the used car market boom. The company maintains attractive valuation metrics, considerably lower than its two leading competitors.

Shareholder Returns

SFTUS Specialty RetailUS Market
7D-2.9%-5.0%-2.8%
1Y-47.0%25.9%20.0%

Return vs Industry: SFT underperformed the US Specialty Retail industry which returned 25.9% over the past year.

Return vs Market: SFT underperformed the US Market which returned 20% over the past year.

Price Volatility

Is SFT's price volatile compared to industry and market?
SFT volatility
SFT Average Weekly Movement6.2%
Specialty Retail Industry Average Movement6.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: SFT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SFT's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013908George Arisonhttps://shift.com

Shift Technologies, Inc. provides end-to-end auto ecommerce platform for buying and selling of used cars. The company operates through two segments, Retail and Wholesale. It engages in the retail sale of used vehicles through its platform that enables mobile digital transaction, such as car searching, scheduling an on-demand test drive, and purchasing at home or at the preferred site of a test drive, as well as provides financing and services.

Shift Technologies Fundamentals Summary

How do Shift Technologies's earnings and revenue compare to its market cap?
SFT fundamental statistics
Market CapUS$374.83m
Earnings (TTM)-US$116.31m
Revenue (TTM)US$514.06m

0.7x

P/S Ratio

-3.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFT income statement (TTM)
RevenueUS$514.06m
Cost of RevenueUS$475.88m
Gross ProfitUS$38.19m
ExpensesUS$154.49m
Earnings-US$116.31m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.43
Gross Margin7.43%
Net Profit Margin-22.63%
Debt/Equity Ratio166.3%

How did SFT perform over the long term?

See historical performance and comparison

Valuation

Is Shift Technologies undervalued compared to its fair value and its price relative to the market?

3.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SFT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SFT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SFT is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: SFT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SFT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFT is overvalued based on its PB Ratio (3.2x) compared to the US Specialty Retail industry average (2.9x).


Future Growth

How is Shift Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SFT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SFT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SFT's revenue (44% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: SFT's revenue (44% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SFT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Shift Technologies performed over the past 5 years?

-27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFT is currently unprofitable.

Growing Profit Margin: SFT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SFT is unprofitable, and losses have increased over the past 5 years at a rate of 27.8% per year.

Accelerating Growth: Unable to compare SFT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SFT is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (144.8%).


Return on Equity

High ROE: SFT has a negative Return on Equity (-99.55%), as it is currently unprofitable.


Financial Health

How is Shift Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SFT's short term assets ($354.5M) exceed its short term liabilities ($101.2M).

Long Term Liabilities: SFT's short term assets ($354.5M) exceed its long term liabilities ($154.8M).


Debt to Equity History and Analysis

Debt Level: SFT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SFT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SFT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SFT has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 45% each year.


Dividend

What is Shift Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SFT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

George Arison (43 yo)

no data

Tenure

US$2,122,400

Compensation

Mr. George Arison serves as Co-Chief Executive Officer and Chairman at Shift Technologies, Inc. and has been its Director since October 2020. He is Director of Belong Acquisition Corp. since July 27, 2021....


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD2.12M) is about average for companies of similar size in the US market ($USD1.75M).

Compensation vs Earnings: George's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SFT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: SFT's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shift Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Shift Technologies, Inc.
  • Ticker: SFT
  • Exchange: NasdaqCM
  • Founded: 2013
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$374.828m
  • Shares outstanding: 81.31m
  • Website: https://shift.com

Number of Employees


Location

  • Shift Technologies, Inc.
  • 2525 16th Street
  • Suite 316
  • San Francisco
  • California
  • 94103-4234
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:11
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.