✏️ Stock Research ‼️

Vroom Inc.

Ticker: $VRM
Sector: 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
🔸requested by @steelcitystocks

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