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VROOM INC (VRM) Stock Fundamental Analysis

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

34.08  +1.28 (+3.9%)

Fundamental Rating

1

Overall VRM gets a fundamental rating of 1 out of 10. We evaluated VRM against 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of VRM have multiple concerns. While showing a medium growth rate, VRM is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

VRM had negative earnings in the past year.
VRM had a negative operating cash flow in the past year.
VRM had negative earnings in each of the past 5 years.
VRM had a negative operating cash flow in each of the past 5 years.
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

VRM's Return On Assets of -24.02% is on the low side compared to the rest of the industry. VRM is outperformed by 88.43% of its industry peers.
VRM has a Return On Equity of -5762.74%. This is amonst the worse of the industry: VRM underperforms 83.47% of its industry peers.
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 has a worse Gross Margin (19.04%) than 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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2. Health

2.1 Basic Checks

VRM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VRM has been increased compared to 1 year ago.
VRM has more shares outstanding than it did 5 years ago.
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

VRM has an Altman-Z score of -2.99. This is a bad value and indicates that VRM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VRM (-2.99) is worse than 89.26% of its industry peers.
VRM has a Debt/Equity ratio of 224.47. This is a high value indicating a heavy dependency on external financing.
VRM's Debt to Equity ratio of 224.47 is on the low side compared to the rest of the industry. VRM is outperformed by 82.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 224.47
Debt/FCF N/A
Altman-Z -2.99
ROIC/WACCN/A
WACC8.02%
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.
VRM has a worse Current ratio (0.19) than 99.17% of its industry peers.
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: 90.08% 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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3. Growth

3.1 Past

VRM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.83%.
Looking at the last year, VRM shows a very negative growth in Revenue. The Revenue has decreased by -55.46% in the last year.
VRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.87% yearly.
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

VRM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.45% yearly.
VRM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.61% yearly.
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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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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

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

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

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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 (6/20/2025, 12:32:42 PM)

34.08

+1.28 (+3.9%)

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 Owners0%
Inst Owner Change3243.11%
Ins Owners0.86%
Ins Owner Change4.99%
Market Cap175.85M
Analysts40
Price Target81.6 (139.44%)
Short Float %0.32%
Short Ratio1.92
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 0.57
P/FCF N/A
P/OCF N/A
P/B 37.55
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 -2.99
F-Score1
WACC8.02%
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