
Stock Research

Vroom Inc.
Ticker:
$VRMSector: Consumer Cyclical
Current Price: $49.79
Market Cap: $5.72B

e-commerce platform for buying and selling of used vehicles and also offers financing solutions; formerly known as Auto America, Inc.
[Thread]

Financial Metrics

P/S Ratio: 7.64

Prev. 5Y Growth: N/A

Proj. 5Y Growth: 55%

Net Income Growth: 8.96%

FCF Growth: 29.70%

Current Ratio: 1.74

[cont.]

News

Vroom’s IPO was June 9th
The 2019 Digital Commerce 360 Online Vehicle Shopper survey noted that 49% of respondents were willing to buy a vehicle entirely online
A 2019 Automotive E-commerce Report revealed digital sales from 2015-2019 had a CAGR of 7.61%
[cont.]

Conclusion


The online used-car buying space is beginning to get crowded w/ Carvana, CarMax, and other dealers beginning to shift to e-commerce

Frost & Sullivan research firm forecasts a $400B addressable market in 10 years

Balance sheet is solid - low debt
[cont.]

Q1 YoY Revenue growth of 59.86%

YoY has not been able to replicate Carvana’s growth rate - however Carvana is highly leveraged

Net Promoter Score (NPS) of 52 trails Carvana’s NPS of 82

Profit margin of 4.64% is very low, but did grow 66.25% YoY (Q1)
[cont.]

Avg monthly users jumped 130%, 148% in units sold, and 72% in listings YoY Q1

E-commerce penetration for the $841B used-car market was estimated to be only 0.9% in 2019

The pandemic has a chance to accelerate growth for this market - Q2 earnings coming up will be vital

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@steelcitystocksDisclaimer: I am not a financial advisor. This information is for educational purposes.
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