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1. Company Snapshot

1.a. Company Description

Vroom, Inc.operates as an e-commerce used automotive retailer in the United States.It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles.


The company was formerly known as Auto America, Inc.and changed its name to Vroom, Inc.in July 2015.


The company was incorporated in 2012 and is headquartered in New York, New York.

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1.b. Last Insights on VRM

Vroom, Inc.'s recent positive drivers include the successful completion of its recapitalization, emerging debt-free from its prepackaged Chapter 11 case. This recapitalization eliminates long-term debt, providing a clean slate for the company. This development, announced on January 14, 2025, is likely to boost investor confidence. Additionally, the company's focus on its data, AI-powered analytics, and digital services platform supporting the automotive industry may drive growth.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Vroom Announces Third Quarter 2025 Results

Nov -10

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Vroom Delivery Taps Instacart Carrot Ads to Power Retail Media for Convenience Stores Nationwide

Sep -11

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Vroom Announces Second Quarter 2025 Results

Aug -07

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Vroom Warrants will Trade on the OTCQX® under Symbol “VRMMW”

Jul -07

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OTC Markets Group Welcomes Vroom, Inc. to OTCQX

Jul -07

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Vroom Announces First Quarter 2025 Results

May -14

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Vroom Announces Fourth Quarter and Full Year 2024 Results

Mar -11

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Vroom Provides Update on Relisting of Common Stock and Q4 2024 Liquidity

Feb -20

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.07%)

6. Segments

Ecommerce

Expected Growth: 11.53%

Vroom's ecommerce growth of 11.53% is driven by increasing online car buying adoption, strategic partnerships with OEMs, and investments in digital marketing and user experience. Additionally, the company's focus on providing a seamless online-to-offline experience, including at-home test drives and contactless delivery, has contributed to its growth.

Retail Financing

Expected Growth: 10.27%

Vroom's retail financing growth of 10.27% is driven by increasing online car sales, strategic partnerships with lenders, and an expanded financing product suite. Additionally, the company's user-friendly digital platform and competitive interest rates have improved customer adoption, contributing to the segment's growth.

Wholesale

Expected Growth: 9.9%

Vroom's 9.9% wholesale growth is driven by increasing demand for used cars, expansion of e-commerce platform, and strategic partnerships with dealerships and OEMs. Additionally, Vroom's proprietary pricing algorithm and data analytics capabilities enable efficient inventory management, contributing to higher sales volumes and revenue growth.

All Other

Expected Growth: 10.77%

Vroom's 'All Other' segment growth of 10.77% is driven by increasing adoption of its digital platform, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving customer experience, investing in technology, and optimizing operations have contributed to this growth.

7. Detailed Products

Used Cars

Vroom offers a wide selection of certified pre-owned vehicles, thoroughly inspected and reconditioned to ensure quality and reliability.

Vroom Delivery

A convenient delivery service that brings the car to the customer's doorstep, allowing them to inspect and test drive the vehicle before finalizing the purchase.

7-Day Return Policy

A hassle-free return policy that allows customers to return their vehicle within 7 days of delivery, with a full refund or exchange.

Financing Options

Vroom offers financing options through partnerships with leading lenders, making it easier for customers to purchase their desired vehicle.

Trade-In Program

A convenient trade-in program that allows customers to trade in their old vehicle and apply the value towards the purchase of a new car.

8. Vroom, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vroom, Inc. is moderate due to the presence of alternative modes of transportation and the increasing popularity of public transportation.

Bargaining Power Of Customers

The bargaining power of customers is high due to the high demand for transportation services and the availability of alternative options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the large number of suppliers available and the ease of switching between them.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the transportation industry and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors in the market and the need to differentiate oneself through pricing and service offerings.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 90.82%
Debt Cost 3.95%
Equity Weight 9.18%
Equity Cost 13.50%
WACC 4.82%
Leverage 988.75%

11. Quality Control: Vroom, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kingsway Financial Services

A-Score: 4.6/10

Value: 4.6

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Driven Brands

A-Score: 4.5/10

Value: 6.0

Growth: 5.3

Quality: 3.0

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Cars

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Vroom

A-Score: 3.6/10

Value: 8.2

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

Stock-Card
America's Car-Mart

A-Score: 3.6/10

Value: 8.7

Growth: 3.6

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
RumbleON

A-Score: 3.3/10

Value: 8.0

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.96$

Current Price

19.96$

Potential

-0.00%

Expected Cash-Flows