Vroom, Inc.
$9.92
-9.2%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -6.5).
Valuation inputs: P/E -6.5, earnings yield N/A, momentum -9.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -6.8%, ROIC -0.1%).
Profitability stack: net margin -7.1%, ROE -6.8%, ROIC -0.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +87.6%, momentum -9.2%, net margin -7.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Vroom, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
Vroom, Inc. Fair Value Envelope
Vroom, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Vroom, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Vroom, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Vroom, Inc. Street Expectations Map
Wall Street analysts project that VRM stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 17.02, with estimates ranging from a low of 1.50 to a high of 51.00.
The consensus 1-year price target stands at 17.02, with estimates ranging from a low of 1.50 to a high of 51.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Vroom, Inc. Insider Positioning
During the last 12 months, insiders have purchased $350K and sold $806 worth of VRM shares, resulting in $350K of net buying activity.
3 Months
0
0.00
60
728.00
-728
-$728
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
3
78.00
-78
-$78
9-12 Months
13.0K
350.45K
0
0.00
+350K
+$350K
Top Buyers
Mudrick Capital Management, L.P.
10 Percent Owner
$350K
Mylod Robert J Jr
Director
$0
Top Sellers
Corrales Anna-Lisa Christina
Officer: Clo, Cco, Secretary
$644
Benzaquen Jacob Shlomo
Officer: Principal Accounting Officer
$162
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $350K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
2 insider buyers and 2 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
vrm Dividend History
Learning Layer
Related Guides
Build conviction on VRM by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.