Is Vroom Stock a Good Investment?

Vroom Investment Advice

VRM

To provide specific investment advice or recommendations on Vroom Inc stock, we recommend investors consider the following general factors when evaluating Vroom Inc. This will help you to make an informed decision on whether to include Vroom in one of your diversified portfolios:

Examine Vroom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Vroom's leadership team and their track record. Good management can help Vroom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Automotive Retail space and any emerging trends that could impact Vroom's business and its evolving consumer preferences.
Compare Vroom's performance and market position to its competitors. Analyze how Vroom is positioned in terms of product offerings, innovation, and market share.
Check if Vroom pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Vroom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Vroom Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Vroom Inc is a good investment.

Sell

Buy

Strong Sell

We provide advice to complement the current expert consensus on Vroom. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Vroom Inc is not overpriced, please validate all Vroom fundamentals, including its current ratio, and the relationship between the ebitda and target price . Given that Vroom Inc has a number of shares shorted of 230.62 K, we advise you to double-check Vroom Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very risky	Details
Hype Condition	Over hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	High	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Frail	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Vroom Stock

Researching Vroom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 41.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 0.38. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Vroom Inc has Price/Earnings To Growth (PEG) ratio of 0.02. The entity recorded a loss per share of 231.97. The firm had not issued any dividends in recent years. Vroom had 1:80 split on the 14th of February 2024.

To determine if Vroom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Vroom's research are outlined below:

	Vroom Inc is way too risky over 90 days horizon
	Vroom Inc appears to be risky and price may revert if volatility continues
	Vroom Inc has high likelihood to experience some financial distress in the next 2 years
	The company reported the last year's revenue of 893.2 M. Reported Net Loss for the year was (365.54 M) with profit before taxes, overhead, and interest of 244.79 M.
	Vroom Inc has about 546.07 M in cash with (533.68 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.95.
	Vroom Inc has a frail financial position based on the latest SEC disclosures

Vroom Quarterly Cash And Short Term Investments

111.6 Million

Vroom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Vroom Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Vroom's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	27th of February 2024 Upcoming Quarterly Report	View
	14th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	27th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Vroom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Vroom's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2021-03-03	2020-12-31	-0.39	-0.44	-0.05	12
2023-08-08	2023-06-30	-0.57	-0.51	0.06	10
2020-11-11	2020-09-30	-0.37	-0.31	0.06	16
2023-02-28	2022-12-31	-0.69	-0.61	0.08	11
2023-11-07	2023-09-30	-0.45	-0.59	-0.14	31
2022-02-28	2021-12-31	-0.77	-0.94	-0.17	22
2022-05-09	2022-03-31	-1.01	-0.71	0.3	29
2020-08-12	2020-06-30	-0.7	-0.34	0.36	51

Know Vroom's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Vroom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Vroom Inc backward and forwards among themselves. Vroom's institutional investor refers to the entity that pools money to purchase Vroom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Silverback Aset Management Llc	2024-06-30	3.1 K
Ubs Group Ag	2024-06-30	2.8 K
Tower Research Capital Llc	2024-06-30	2.7 K
Bank Of America Corp	2024-06-30	2.6 K
Public Employees Retirement System Of Ohio	2024-06-30	771
Barclays Plc	2024-06-30	447
Advisor Group Holdings, Inc.	2024-06-30	317
Fmr Inc	2024-06-30	190
International Assets Investment Management, Llc	2024-09-30	150
Catterton Management Company, L.l.c	2024-06-30	318.2 K
Charles Schwab Investment Management Inc	2024-06-30	109.9 K

Note, although Vroom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Vroom's market capitalization trends

The company currently falls under 'Micro-Cap' category with a total capitalization of 16.26 M.

Market Cap

79.82 Million

Vroom's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.27)	(0.29)
Return On Capital Employed	(0.35)	(0.36)
Return On Assets	(0.25)	(0.26)
Return On Equity	(2.99)	(2.84)

The company has Net Profit Margin of (0.35) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 0.04 %, which entails that for every 100 dollars of revenue, it generated $0.04 of operating income.

Determining Vroom's profitability involves analyzing its financial statements and using various financial metrics to determine if Vroom is a good buy. For example, gross profit margin measures Vroom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Vroom's profitability and make more informed investment decisions.

Evaluate Vroom's management efficiency

Vroom Inc has Return on Asset of (0.0998) % which means that on every $100 spent on assets, it lost $0.0998. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (2.1312) %, meaning that it generated no profit with money invested by stockholders. Vroom's management efficiency ratios could be used to measure how well Vroom manages its routine affairs as well as how well it operates its assets and liabilities. As of the 12th of November 2024, Return On Tangible Assets is likely to drop to -0.29. In addition to that, Return On Capital Employed is likely to drop to -0.36. At this time, Vroom's Total Assets are very stable compared to the past year. As of the 12th of November 2024, Other Assets is likely to grow to about 200.7 M, while Non Current Assets Total are likely to drop about 276.1 M.

	Last Reported	Projected for Next Year
Book Value Per Share	70.08	73.58
Tangible Book Value Per Share	(5.59)	(5.87)
Enterprise Value Over EBITDA	(6.54)	(6.86)
Price Book Value Ratio	0.69	0.39
Enterprise Value Multiple	(6.54)	(6.86)
Price Fair Value	0.69	0.39
Enterprise Value	1.1 B	1.2 B

The strategic initiatives led by Vroom's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.

Beta

1.893

Basic technical analysis of Vroom Stock

As of the 12th of November 2024, Vroom has the Risk Adjusted Performance of 0.1101, coefficient of variation of 752.55, and Semi Deviation of 3.77. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Vroom Inc, as well as the relationship between them. Please validate Vroom Inc variance and potential upside to decide if Vroom is priced more or less accurately, providing market reflects its prevalent price of 8.87 per share. Given that Vroom Inc has jensen alpha of 0.7332, we advise you to double-check Vroom Inc's current market performance to make sure the company can sustain itself at a future point.

Vroom's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Vroom insiders, such as employees or executives, is commonly permitted as long as it does not rely on Vroom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Vroom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Hennessy Paul J. over three months ago Disposition of 50000 shares by Hennessy Paul J. of Vroom at 3. subject to Rule 16b-3
		Cgp2 Lone Star, L.p. over six months ago Disposition of 6994354 shares by Cgp2 Lone Star, L.p. of Vroom subject to Rule 16b-3
		Carol Stott over six months ago Disposition of tradable shares by Carol Stott of Vroom at 12.2347 subject to Rule 16b-3
		Carol Stott over six months ago Acquisition by Carol Stott of 22500 shares of Vroom at 4.21 subject to Rule 16b-3
		Thomas Shortt over six months ago Acquisition by Thomas Shortt of 2250 shares of Vroom subject to Rule 16b-3
		Thomas Shortt over six months ago Sale by Thomas Shortt of 47030 shares of Vroom
		Agnieszka Zakowicz over a year ago Sale by Agnieszka Zakowicz of 152 shares of Vroom
		Mark Roszkowski over a year ago Vroom exotic insider transaction detected
		Mylod Robert J Jr over a year ago Acquisition by Mylod Robert J Jr of 97656 shares of Vroom subject to Rule 16b-3
		Agnieszka Zakowicz over a year ago Sale by Agnieszka Zakowicz of 6131 shares of Vroom
		Thomas Shortt over a year ago Acquisition by Thomas Shortt of 1800000 shares of Vroom subject to Rule 16b-3
		Agnieszka Zakowicz over a year ago Sale by Agnieszka Zakowicz of 360 shares of Vroom

Vroom's Outstanding Corporate Bonds

Vroom issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Vroom Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Vroom bonds can be classified according to their maturity, which is the date when Vroom Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	VMC 715 30 NOV 37 Corp Bond US929160AG40	View
	VULCAN MATLS 45 Corp Bond US929160AV17	View
	VULCAN MATLS 39 Corp Bond US929160AT60	View
	VULCAN MATLS 45 Corp Bond US929160AS87	View
	VULCAN MATLS 47 Corp Bond US929160AY55	View

View All Vroom Corporate Bonds

Understand Vroom's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Vroom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1101
	Market Risk Adjusted Performance	0.8536
	Mean Deviation	4.67
	Semi Deviation	3.77
	Downside Deviation	4.33
	Coefficient Of Variation	752.55
	Standard Deviation	6.95
	Variance	48.32
	Information Ratio	0.1075
	Jensen Alpha	0.7332
	Total Risk Alpha	(0.61)
	Sortino Ratio	0.1724
	Treynor Ratio	0.8436
	Maximum Drawdown	45.62
	Value At Risk	(5.58)
	Potential Upside	10.35
	Downside Variance	18.77
	Semi Variance	14.21
	Expected Short fall	(5.78)
	Skewness	2.24
	Kurtosis	8.48

	Risk Adjusted Performance	0.1101
	Market Risk Adjusted Performance	0.8536
	Mean Deviation	4.67
	Semi Deviation	3.77
	Downside Deviation	4.33
	Coefficient Of Variation	752.55
	Standard Deviation	6.95
	Variance	48.32
	Information Ratio	0.1075
	Jensen Alpha	0.7332
	Total Risk Alpha	(0.61)
	Sortino Ratio	0.1724
	Treynor Ratio	0.8436
	Maximum Drawdown	45.62
	Value At Risk	(5.58)
	Potential Upside	10.35
	Downside Variance	18.77
	Semi Variance	14.21
	Expected Short fall	(5.78)
	Skewness	2.24
	Kurtosis	8.48

Consider Vroom's intraday indicators

Vroom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Vroom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	2878.18
	Daily Balance Of Power	(0.10)
	Rate Of Daily Change	0.99
	Day Median Price	8.96
	Day Typical Price	8.93
	Price Action Indicator	(0.12)
	Period Momentum Indicator	(0.06)
	Relative Strength Index	45.39

Vroom Corporate Filings

8K	23rd of September 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F3	30th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify
10Q	10th of May 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
F4	5th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify

Vroom time-series forecasting models is one of many Vroom's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Vroom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Vroom Stock media impact

Far too much social signal, news, headlines, and media speculation about Vroom that are available to investors today. That information is available publicly through Vroom media outlets and privately through word of mouth or via Vroom internal channels. However, regardless of the origin, that massive amount of Vroom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Vroom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Vroom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Vroom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Vroom alpha.

Vroom Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Vroom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Vroom Corporate Management

Mark Roszkowski	Consultant	Profile
Robert Krakowiak	CFO Treasurer	Profile
Allen Miller	Investor Officer	Profile
AnnaLisa Corrales	Chief Officer	Profile
Liam Harrington	Vice Relations	Profile
John Caine	Chief Officer	Profile
Agnieszka Zakowicz	Senior Officer	Profile

When determining whether Vroom Inc is a strong investment it is important to analyze Vroom's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vroom's future performance. For an informed investment choice regarding Vroom Stock, refer to the following important reports: