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VROOM INC (VRM) Stock Fundamental Analysis

NASDAQ:VRM - Nasdaq - US92918V2088 - Common Stock - Currency: USD

24.5  +0.25 (+1.03%)

Fundamental Rating

1

Taking everything into account, VRM scores 1 out of 10 in our fundamental rating. VRM was compared to 121 industry peers in the Specialty Retail industry. VRM may be in some trouble as it scores bad on both profitability and health. VRM is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

VRM had negative earnings in the past year.
In the past year VRM has reported a negative cash flow from operations.
VRM had negative earnings in each of the past 5 years.
In the past 5 years VRM always reported negative operating cash flow.
VRM Yearly Net Income VS EBIT VS OCF VS FCFVRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 -100M -200M -300M -400M -500M

1.2 Ratios

The Return On Assets of VRM (-24.02%) is worse than 88.43% of its industry peers.
Looking at the Return On Equity, with a value of -5762.74%, VRM is doing worse than 82.64% of the companies in the same industry.
Industry RankSector Rank
ROA -24.02%
ROE -5762.74%
ROIC N/A
ROA(3y)-22.79%
ROA(5y)-25.81%
ROE(3y)-144.96%
ROE(5y)-108.63%
ROIC(3y)N/A
ROIC(5y)N/A
VRM Yearly ROA, ROE, ROICVRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 -50 -100 -150 -200 -250

1.3 Margins

VRM's Gross Margin of 19.04% is on the low side compared to the rest of the industry. VRM is outperformed by 82.64% of its industry peers.
VRM's Gross Margin has improved in the last couple of years.
VRM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 19.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.97%
GM growth 5Y20.6%
VRM Yearly Profit, Operating, Gross MarginsVRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30 -40

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0

2. Health

2.1 Basic Checks

VRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
VRM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRM has more shares outstanding
The debt/assets ratio for VRM is higher compared to a year ago.
VRM Yearly Shares OutstandingVRM Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 500K 1M 1.5M
VRM Yearly Total Debt VS Total AssetsVRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of -3.01, we must say that VRM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -3.01, VRM is not doing good in the industry: 91.74% of the companies in the same industry are doing better.
VRM has a Debt/Equity ratio of 224.47. This is a high value indicating a heavy dependency on external financing.
VRM has a Debt to Equity ratio of 224.47. This is amonst the worse of the industry: VRM underperforms 82.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 224.47
Debt/FCF N/A
Altman-Z -3.01
ROIC/WACCN/A
WACC7.65%
VRM Yearly LT Debt VS Equity VS FCFVRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

2.3 Liquidity

A Current Ratio of 0.19 indicates that VRM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.19, VRM is doing worse than 99.17% of the companies in the same industry.
A Quick Ratio of 0.19 indicates that VRM may have some problems paying its short term obligations.
With a Quick ratio value of 0.19, VRM is not doing good in the industry: 91.74% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
VRM Yearly Current Assets VS Current LiabilitesVRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

The earnings per share for VRM have decreased strongly by -32.83% in the last year.
The Revenue for VRM has decreased by -55.46% in the past year. This is quite bad
Measured over the past years, VRM shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)-32.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.68%
Revenue 1Y (TTM)-55.46%
Revenue growth 3Y-13.03%
Revenue growth 5Y0.87%
Sales Q2Q%-91.44%

3.2 Future

Based on estimates for the next years, VRM will show a decrease in Earnings Per Share. The EPS will decrease by -2.45% on average per year.
The Revenue is expected to grow by 23.61% on average over the next years. This is a very strong growth
EPS Next Y2.7%
EPS Next 2Y-2.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year21.55%
Revenue Next 2Y23.61%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
VRM Yearly Revenue VS EstimatesVRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
VRM Yearly EPS VS EstimatesVRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 -50 -100 -150 -200

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0

4. Valuation

4.1 Price/Earnings Ratio

VRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year VRM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VRM Price Earnings VS Forward Price EarningsVRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VRM Per share dataVRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 -100 -150

4.3 Compensation for Growth

VRM's earnings are expected to decrease with -2.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.45%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

VRM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VROOM INC

NASDAQ:VRM (5/23/2025, 9:02:32 PM)

24.5

+0.25 (+1.03%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-07 2025-05-07
Earnings (Next)08-06 2025-08-06
Inst Owners2.24%
Inst Owner Change3243.11%
Ins Owners0.95%
Ins Owner Change5.03%
Market Cap126.42M
Analysts40
Price Target81.6 (233.06%)
Short Float %0.3%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-86.45%
Min Revenue beat(2)-92.67%
Max Revenue beat(2)-80.22%
Revenue beat(4)0
Avg Revenue beat(4)-66.93%
Min Revenue beat(4)-93.55%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-39.98%
Revenue beat(12)2
Avg Revenue beat(12)-30.14%
Revenue beat(16)4
Avg Revenue beat(16)-21.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.99%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.41
P/FCF N/A
P/OCF N/A
P/B 27
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-151.94
EYN/A
EPS(NY)-191.99
Fwd EYN/A
FCF(TTM)-36.49
FCFYN/A
OCF(TTM)-35.46
OCFYN/A
SpS60.22
BVpS0.91
TBVpS-20.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -24.02%
ROE -5762.74%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 19.04%
FCFM N/A
ROA(3y)-22.79%
ROA(5y)-25.81%
ROE(3y)-144.96%
ROE(5y)-108.63%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.97%
GM growth 5Y20.6%
F-Score1
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 224.47
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 16.24%
Cap/Sales 1.73%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z -3.01
F-Score1
WACC7.65%
ROIC/WACCN/A
Cap/Depr(3y)103.89%
Cap/Depr(5y)122.48%
Cap/Sales(3y)1.26%
Cap/Sales(5y)0.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.68%
EPS Next Y2.7%
EPS Next 2Y-2.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-55.46%
Revenue growth 3Y-13.03%
Revenue growth 5Y0.87%
Sales Q2Q%-91.44%
Revenue Next Year21.55%
Revenue Next 2Y23.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.31%
OCF growth 3YN/A
OCF growth 5YN/A