NasdaqGS:VRM

Stock Analysis Report

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Executive Summary

Vroom, Inc. operates an e-commerce platform for buying, selling, and trading of new and used cars in the United States. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

How has Vroom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.5%

VRM

-6.3%

US Specialty Retail

-4.1%

US Market


1 Year Return

n/a

VRM

15.3%

US Specialty Retail

12.0%

US Market

Return vs Industry: Insufficient data to determine how VRM performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how VRM performed against the US Market.


Shareholder returns

VRMIndustryMarket
7 Day-12.5%-6.3%-4.1%
30 Day-22.1%-2.5%-0.2%
90 Day-31.8%6.1%2.8%
1 Yearn/a16.4%15.3%14.6%12.0%
3 Yearn/a77.4%69.6%35.8%26.8%
5 Yearn/a56.1%44.0%75.2%55.6%

Price Volatility Vs. Market

How volatile is Vroom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

Is Vroom (NASDAQ:VRM) Using Too Much Debt?

Valuation

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

6.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: VRM 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 VRM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRM is overvalued based on its PB Ratio (6.5x) compared to the US Specialty Retail industry average (1.8x).


Next Steps

Future Growth

How is Vroom forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: VRM's revenue (39.2% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: VRM's revenue (39.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Vroom performed over the past 5 years?

-47.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: VRM is currently unprofitable.

Growing Profit Margin: VRM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if VRM's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: VRM is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (6%).


Return on Equity

High ROE: VRM has a negative Return on Equity (-25.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vroom's financial position?


Financial Position Analysis

Short Term Liabilities: VRM's short term assets ($847.0M) exceed its short term liabilities ($204.1M).

Long Term Liabilities: VRM's short term assets ($847.0M) exceed its long term liabilities ($13.7M).


Debt to Equity History and Analysis

Debt Level: VRM's debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VRM'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: VRM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: VRM has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of 36.1% each year.


Next Steps

Dividend

What is Vroom current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VRM'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 VRM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRM'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 VRM'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?

1.8yrs

Average management tenure


CEO

Paul Hennessy (55 yo)

4.33yrs

Tenure

US$814,077

Compensation

Mr. Paul J. Hennessy has been Chief Executive Officer of Vroom, Inc. since June 8, 2016 and its Director since June 2016. Mr. Hennessy served as the Chief Executive Officer of Priceline.Com at The Pricelin ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD814.08K) is below average for companies of similar size in the US market ($USD7.41M).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Hennessy
CEO & Director4.33yrsUS$814.08k0.19%
$ 10.0m
David Jones
Chief Financial Officer1.92yrsUS$1.55m0%
$ 0
Patricia Moran
Chief Legal Officer & Secretary1.75yrsUS$848.18k0%
$ 0
Carol Stott
Chief People & Culture Officerno dataUS$527.31k0.0091%
$ 479.5k
Mark Roszkowski
Chief Revenue Officer1.58yrsUS$1.04m0%
$ 0
Allen Miller
Investor Relations Officerno datano datano data
Peter Scherr
Chief Marketing Officerno datano datano data
Dennis Looney
Chief Supply Chain Officerno datano datano data
John Caine
Chief Conversion Officerno datano datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: VRM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Hennessy
CEO & Director4.33yrsUS$814.08k0.19%
$ 10.0m
Adam Valkin
Independent Director4.83yrsno datano data
Robert Mylod
Independent Chairperson of the Board4.33yrsUS$421.00k0.33%
$ 17.5m
Scott Dahnke
Independent Director5.25yrsno datano data
Laura Lang
Independent Director0.42yrno datano data
Michael Farello
Independent Director5.25yrsno datano data
Laura O'Shaughnessy
Independent Director0.42yrno datano data

4.3yrs

Average Tenure

55yo

Average Age

Experienced Board: VRM's board of directors are considered experienced (4.3 years average tenure).


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: VRM only recently listed within the past 12 months.


Top Shareholders

Company Information

Vroom, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vroom, Inc.
  • Ticker: VRM
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$5.252b
  • Shares outstanding: 130.14m
  • Website: https://www.vroom.com

Number of Employees


Location

  • Vroom, Inc.
  • 1375 Broadway
  • 11th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2020
VRM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2020

Biography

Vroom, Inc. operates an e-commerce platform for buying, selling, and trading of new and used cars in the United States. It also offers financing solutions. The company was formerly known as Auto America, I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:30
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.