Cazoo Group (NYSE:CZOO) - Share price, News & Analysis

CZOO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

CZOO Stock Overview

Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe.

Rewards

Revenue is forecast to grow 50.54% per year

Revenue grew by 311.7% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Cazoo Group Competitors

Betterware de MéxicoP.I. de

NasdaqCM:BWMX

US$381.8m

Cango

NYSE:CANG

US$321.9m

1-800-FLOWERS.COM

NasdaqGS:FLWS

US$619.1m

CarParts.com

NasdaqGS:PRTS

US$373.9m

Price History & Performance

Summary of all time highs, changes and price drops for Cazoo Group
Historical stock prices
Current Share Price	US$0.74
52 Week High	US$10.13
52 Week Low	US$0.68
Beta	0
1 Month Change	-43.32%
3 Month Change	-75.27%
1 Year Change	-92.60%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-93.48%

Recent News & Updates

Apr 11

Cazoo: Bullish Earnings Close Out A Record Year

Cazoo's fiscal 2021 earnings results capped off the strong year. Revenue for the year increased by 312% to reach a new record. The stock price is down nearly 70% from its 52-week high as growth stocks continue to falter in the new investing environment.

Shareholder Returns

	CZOO	US Online Retail	US Market
7D	-18.1%	-2.7%	-2.2%
1Y	-92.6%	-42.6%	-19.1%

Return vs Industry: CZOO underperformed the US Online Retail industry which returned -42.7% over the past year.

Return vs Market: CZOO underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is CZOO's price volatile compared to industry and market?
CZOO volatility
CZOO Average Weekly Movement	14.8%
Online Retail Industry Average Movement	13.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.3%

Stable Share Price: CZOO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: CZOO's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2018	3,822	Alex Chesterman	https://www.cazoo.co.uk

Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe. It allows consumers to purchase, finance, and subscribe to a car through online for delivery or collection. The company was founded in 2018 and is headquartered in London, the United Kingdom.

Cazoo Group Fundamentals Summary

How do Cazoo Group's earnings and revenue compare to its market cap?
CZOO fundamental statistics
Market Cap	UK£462.86m
Earnings (TTM)	-UK£543.51m
Revenue (TTM)	UK£667.81m

0.7x

P/S Ratio

-0.9x

P/E Ratio

Is CZOO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CZOO income statement (TTM)
Revenue	UK£667.81m
Cost of Revenue	UK£642.92m
Gross Profit	UK£24.90m
Other Expenses	UK£568.41m
Earnings	-UK£543.51m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.71
Gross Margin	3.73%
Net Profit Margin	-81.39%
Debt/Equity Ratio	35.0%

How did CZOO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CZOO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CZOO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CZOO. This is calculated by dividing CZOO's market cap by their current preferred multiple.
What is CZOO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£462.86m

CZOO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	-2.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CZOO's PS Ratio compare to its peers?

CZOO PS Ratio vs Peers

The above table shows the PS ratio for CZOO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.6x
BWMX Betterware de MéxicoP.I. de	0.9x	14.8%	US$381.8m
CANG Cango	0.6x	21.5%	US$321.9m
FLWS 1-800-FLOWERS.COM	0.3x	5.6%	US$619.1m
PRTS CarParts.com	0.6x	17.6%	US$373.9m
CZOO Cazoo Group	0.7x	50.5%	US$560.7m

Forward PS

Price-To-Sales vs Peers: CZOO is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does CZOO's PE Ratio compare vs other companies in the US Online Retail Industry?

Price-To-Sales vs Industry: CZOO is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Online Retail industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

What is CZOO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CZOO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	2.3x

Price-To-Sales vs Fair Ratio: CZOO is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

Share Price vs Fair Value

What is the Fair Price of CZOO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate CZOO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CZOO's fair value for valuation analysis.

Price to Earnings Growth Ratio

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

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Future Growth

How is Cazoo Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CZOO's revenue (50.5% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: CZOO's revenue (50.5% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Cazoo Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-449.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: CZOO is currently unprofitable.

Growing Profit Margin: CZOO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CZOO's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: CZOO is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-18.3%).

Return on Equity

High ROE: CZOO has a negative Return on Equity (-76.48%), as it is currently unprofitable.

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Financial Health

How is Cazoo Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CZOO's short term assets (£635.1M) exceed its short term liabilities (£278.7M).

Long Term Liabilities: CZOO's short term assets (£635.1M) exceed its long term liabilities (£190.5M).

Debt to Equity History and Analysis

Debt Level: CZOO's net debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CZOO'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: CZOO has sufficient cash runway for 4 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: CZOO is forecast to have sufficient cash runway for 7 months based on free cash flow estimates, but has since raised additional capital.

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Dividend

What is Cazoo Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CZOO has not reported any payouts.

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Management

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

3.2yrs

Average management tenure

CEO

Alex Chesterman (52 yo)

4.5yrs

Tenure

Mr. Alexander Edward Chesterman, also known as Alex, OBE, Founded Cazoo Group Ltd in 2018 and serves as its Chief Executive Officer and Director in 2018. He serves as Chairman at Cazoo Group Ltd. since Aug...

Leadership Team

Experienced Management: CZOO's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: CZOO's board of directors are not considered experienced ( 0.9 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: CZOO insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31