Vroom, Inc. Fundamental Analysis
Vroom, Inc. (VRM) shows moderate financial fundamentals with a PE ratio of -0.76, profit margin of -1.23%, and ROE of -53.29%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 8.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -117.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRM's fundamental strength across five key dimensions:
Efficiency Score
WeakVRM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVRM trades at attractive valuation levels.
Growth Score
ExcellentVRM delivers strong and consistent growth momentum.
Financial Health Score
WeakVRM carries high financial risk with limited liquidity.
Profitability Score
WeakVRM struggles to sustain strong margins.
Key Financial Metrics
Is VRM Expensive or Cheap?
P/E Ratio
VRM trades at -0.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VRM's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Vroom, Inc. at 0.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 98.36 times EBITDA. This signals the market has high growth expectations.
How Well Does VRM Make Money?
Net Profit Margin
For every $100 in sales, Vroom, Inc. keeps $-1.23 as profit after all expenses.
Operating Margin
Core operations generate -86.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-53.29 in profit for every $100 of shareholder equity.
ROA
Vroom, Inc. generates $-7.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vroom, Inc. generates strong operating cash flow of $77.32M, reflecting robust business health.
Free Cash Flow
Vroom, Inc. generates strong free cash flow of $70.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.48 in free cash annually.
FCF Yield
VRM converts 1.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.53
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How VRM Stacks Against Its Sector Peers
| Metric | VRM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.76 | 23.90 | Better (Cheaper) |
| ROE | -53.29% | 1176.00% | Weak |
| Net Margin | -123.22% | 2549.00% | Weak |
| Debt/Equity | 7.87 | 0.73 | Weak (High Leverage) |
| Current Ratio | 0.91 | 2.83 | Weak Liquidity |
| ROA | -7.01% | -8407.00% (disorted) | Weak |
VRM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vroom, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-98.54%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
99.31%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
103.50%
Industry Style: Cyclical, Growth, Discretionary
High Growth