Vroom Inc Stock Performance
| VRM Stock | USD 5.32 0.04 0.75% |
The entity has a beta of 0.65, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Vroom's returns are expected to increase less than the market. However, during the bear market, the loss of holding Vroom is expected to be smaller as well. At this point, Vroom Inc has a negative expected return of -0.52%. Please make sure to validate Vroom's treynor ratio, accumulation distribution, as well as the relationship between the Accumulation Distribution and price action indicator , to decide if Vroom Inc performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Over the last 90 days Vroom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors. ...more
Actual Historical Performance (%)
One Day Return (2.44) | Five Day Return (4.77) | Year To Date Return (89.40) | Ten Year Return (99.86) | All Time Return (99.86) |
Last Split Factor 1:80 | Last Split Date 2024-02-14 |
1 | Vroom unveils strategic plan to lower costs | 09/23/2024 |
2 | White Tuques Qualys Experts Team Exhibiting at QSC Americas 2024 Partner Pavilion | 10/08/2024 |
3 | Vroom Inc Reports Q3 2024 Net Loss of 37.7 Million Amid Debt Restructuring Efforts | 11/12/2024 |
4 | Houston online car dealer Vroom files for Ch. 11 bankruptcy, plans to restructure debt | 11/14/2024 |
5 | Vroom Market Cap 9.9 Mil - GuruFocus.com | 11/20/2024 |
| Begin Period Cash Flow | 472 M |
Vroom |
Vroom Relative Risk vs. Return Landscape
If you would invest 886.00 in Vroom Inc on August 27, 2024 and sell it today you would lose (354.00) from holding Vroom Inc or give up 39.95% of portfolio value over 90 days. Vroom Inc is generating negative expected returns assuming volatility of 7.4228% on return distribution over 90 days investment horizon. In other words, 66% of stocks are less volatile than Vroom, and above 99% of all equities are expected to generate higher returns over the next 90 days. Expected Return |
| Risk |
Vroom Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Vroom's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Vroom Inc, and traders can use it to determine the average amount a Vroom's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0704
| Best Portfolio | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | VRM |
Estimated Market Risk
| 7.42 actual daily | 66 66% of assets are less volatile |
Expected Return
| -0.52 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.07 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Vroom is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Vroom by adding Vroom to a well-diversified portfolio.
Vroom Fundamentals Growth
Vroom Stock prices reflect investors' perceptions of the future prospects and financial health of Vroom, and Vroom fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Vroom Stock performance.
| Return On Equity | -2.75 | ||||
| Return On Asset | -0.0875 | ||||
| Profit Margin | (0.42) % | ||||
| Operating Margin | (0.66) % | ||||
| Current Valuation | 1.02 B | ||||
| Shares Outstanding | 1.82 M | ||||
| Price To Book | 2.07 X | ||||
| Price To Sales | 0.02 X | ||||
| Revenue | 893.2 M | ||||
| Gross Profit | 244.79 M | ||||
| EBITDA | (274.2 M) | ||||
| Net Income | (365.54 M) | ||||
| Cash And Equivalents | 546.07 M | ||||
| Cash Per Share | 3.95 X | ||||
| Total Debt | 1.23 B | ||||
| Debt To Equity | 2.90 % | ||||
| Current Ratio | 1.76 X | ||||
| Book Value Per Share | 2.59 X | ||||
| Cash Flow From Operations | (533.68 M) | ||||
| Earnings Per Share | (232.92) X | ||||
| Market Capitalization | 9.69 M | ||||
| Total Asset | 1.48 B | ||||
| Retained Earnings | (1.97 B) | ||||
| Working Capital | 95.83 M | ||||
About Vroom Performance
By examining Vroom's fundamental ratios, stakeholders can obtain critical insights into Vroom's financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that Vroom is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
| Last Reported | Projected for Next Year | ||
| Days Of Inventory On Hand | 81.48 | 63.82 | |
| Return On Tangible Assets | (0.27) | (0.29) | |
| Return On Capital Employed | (0.44) | (0.46) | |
| Return On Assets | (0.25) | (0.26) | |
| Return On Equity | (2.99) | (2.84) |
Things to note about Vroom Inc performance evaluation
Checking the ongoing alerts about Vroom for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Vroom Inc help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Vroom Inc generated a negative expected return over the last 90 days | |
| Vroom Inc has high historical volatility and very poor performance | |
| Vroom Inc has a very high chance of going through financial distress in the upcoming 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 | |
| Latest headline from news.google.com: Vroom Market Cap 9.9 Mil - GuruFocus.com |
- Analyzing Vroom's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Vroom's stock is overvalued or undervalued compared to its peers.
- Examining Vroom's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Vroom's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Vroom's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Vroom's stock. These opinions can provide insight into Vroom's potential for growth and whether the stock is currently undervalued or overvalued.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vroom Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vroom. If investors know Vroom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vroom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (232.92) | Revenue Per Share 356.465 | Quarterly Revenue Growth (0.90) | Return On Assets (0.09) | Return On Equity (2.75) |
The market value of Vroom Inc is measured differently than its book value, which is the value of Vroom that is recorded on the company's balance sheet. Investors also form their own opinion of Vroom's value that differs from its market value or its book value, called intrinsic value, which is Vroom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vroom's market value can be influenced by many factors that don't directly affect Vroom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vroom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vroom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vroom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.