Market Cap
US$4.8b
Last Updated
2021/01/22 00:45 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: VRM's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-3.9%
VRM
-0.5%
US Specialty Retail
1.4%
US Market
1 Year Return
n/a
VRM
34.1%
US Specialty Retail
22.6%
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
| VRM | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | -0.5% | 1.4% |
| 30 Day | -15.9% | 6.1% | 4.9% |
| 90 Day | -20.3% | 15.5% | 14.6% |
| 1 Year | n/a | 35.3%34.1% | 25.4%22.6% |
| 3 Year | n/a | 74.3%67.0% | 46.8%37.0% |
| 5 Year | n/a | 118.9%102.6% | 132.0%106.1% |
Long-Term 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
2 weeks ago | Simply Wall St
Is Vroom (NASDAQ:VRM) Weighed On By Its Debt Load?2 months ago | Simply Wall St
How Many Vroom, Inc. (NASDAQ:VRM) Shares Do Institutions Own?4 months 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?
3.74x
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 (3.7x) compared to the US Specialty Retail industry average (2.9x).
Next Steps
Future Growth
How is Vroom forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
22.5%
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 (37.2% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: VRM's revenue (37.2% 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?
10.1%
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: Insufficient data to determine if VRM's year-on-year earnings growth rate was positive over the past 5 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 (15.3%).
Return on Equity
High ROE: VRM has a negative Return on Equity (-14.47%), 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 ($1.5B) exceed its short term liabilities ($364.5M).
Long Term Liabilities: VRM's short term assets ($1.5B) exceed its long term liabilities ($12.6M).
Debt to Equity History and Analysis
Debt Level: VRM's debt to equity ratio (19.5%) 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 more than 3 years if free cash flow continues to reduce at historical rates of 40.3% 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?
2.1yrs
Average management tenure
CEO
Paul Hennessy (55 yo)
4.58yrs
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 ($USD5.00M).
Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.58yrs | US$814.08k | 0.19% $ 9.1m | |
| Chief Financial Officer | 2.17yrs | US$1.55m | 0.028% $ 1.4m | |
| Chief Legal Officer & Secretary | 2yrs | US$848.18k | 0% $ 0 | |
| Chief People & Culture Officer | no data | US$527.31k | 0.0091% $ 436.9k | |
| Chief Revenue Officer | 1.92yrs | US$1.04m | 0% $ 0 | |
| Investor Relations Officer | no data | no data | no data | |
| Chief Marketing Officer | no data | no data | no data | |
| Chief Supply Chain Officer | no data | no data | no data | |
| Chief Conversion Officer | no data | no data | no data |
2.1yrs
Average Tenure
52yo
Average Age
Experienced Management: VRM's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.58yrs | US$814.08k | 0.19% $ 9.1m | |
| Independent Director | 5.08yrs | no data | no data | |
| Independent Chairperson of the Board | 4.58yrs | US$421.00k | 0.33% $ 15.9m | |
| Independent Director | 5.5yrs | no data | no data | |
| Independent Director | 0.67yr | no data | no data | |
| Independent Director | 5.5yrs | no data | no data | |
| Independent Director | 0.67yr | no data | no data |
4.6yrs
Average Tenure
55yo
Average Age
Experienced Board: VRM's board of directors are considered experienced (4.6 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$4.785b
- Shares outstanding: 130.24m
- Website: https://www.vroom.com
Number of Employees
Location
- Vroom, Inc.
- 1375 Broadway
- 11th Floor
- New York
- New York
- 10018
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VRM | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 2020 |
| VRM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 00:45 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.