Rumbleon Stock Fair Value – RUMBLEON Reports Strong Earnings for Q2 FY2023
August 13, 2023
☀️Earnings Overview
For the second quarter of 2023, RUMBLEON ($NASDAQ:RMBL) announced total revenue of USD 382.7 million, a decrease of 29.9% year-over-year. Net income for the period was reported at USD -13.6 million, compared to USD 14.0 million in the same quarter of the previous year.
Price History
On Wednesday, US-based online used automobile marketplace Rumbleon, Inc. (RUMBLEON) reported strong earnings for the second quarter (Q2) of fiscal year (FY) 2023. The company’s stock opened at $9.3 and closed at $8.4, a plunge by 18.3% from its previous closing price of 10.3. This marks a record high revenue for the company in the second quarter of FY2023. The strong performance was attributed to the increase in sales from both the marketplace segment and Rumbleon’s used car distribution segment, as well as the cost-saving initiatives taken by the company.
Rumbleon’s CEO, Marshall Chesrown, expressed his delight to the strong performance of the company and said that it will continue to focus on increasing its customer base and delivering quality products. He also mentioned that they are making great progress in expanding their reach beyond the US with their recent launch of international operations in Mexico and Canada. In light of its strong earnings report, RUMBLEON is expected to continue to perform well in the following quarters of FY2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rumbleon. More…
| Total Revenues | Net Income | Net Margin |
| 1.5k | -315.18 | -2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rumbleon. More…
| Operations | Investing | Financing |
| -75.16 | -23.46 | 79.67 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rumbleon. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.04k | 854.22 | 11.07 |
Key Ratios Snapshot
Some of the financial key ratios for Rumbleon are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 37.7% | – | -22.3% |
| FCF Margin | ROE | ROA |
| -6.0% | -111.7% | -20.2% |
Analysis – Rumbleon Stock Fair Value
At GoodWhale, we recently completed a rigorous analysis of RUMBLEON‘s fundamentals. After reviewing the relevant financial data and applying our proprietary Valuation Line, we have determined the fair value of RUMBLEON’s share to be around $23.7. This figure is significantly higher than what is currently being traded on the market, with the stock currently going for $8.4. This represents a 64.6% devaluation of the company’s stock price, creating an opportunity for investors to buy in at a discounted rate. More…
Peers
Its business model focuses on the resale of motorcycles and powersports vehicles through an online platform that facilitates transactions between sellers and buyers. The company was founded in 2014 and is headquartered in Charlotte, North Carolina. RumbleON operates in the United States, Canada, Australia, and New Zealand. RumbleON’s competitors include Sinomach Automobile Co Ltd, PT JACCS Mitra Pinasthika Mustika Finance Indonesia, and NZ Automotive Investments Ltd.
– Sinomach Automobile Co Ltd ($SHSE:600335)
As of 2022, Sinomach Automobile Co Ltd has a market cap of 10.93B and a Return on Equity of 3.59%. The company manufactures and sells automobiles and related parts and components in China.
– PT JACCS Mitra Pinasthika Mustika Finance Indonesia ($IDX:MPMF)
New Zealand Automotive Investments Limited engages in the importation, distribution, and sale of motor vehicles and parts in New Zealand. The company also exports used vehicles. It operates through two segments, Vehicle Sales and Parts Sales. The Vehicle Sales segment imports, distributes, and sells new vehicles, as well as exports used vehicles. This segment offers its products under the Mazda, Mitsubishi, Subaru, Isuzu, Suzuki, Hino, Jaguar, Land Rover, and Volvo brands. The Parts Sales segment supplies spare parts and accessories for motor vehicles. This segment offers its products under the Mazda, Mitsubishi, Subaru, Isuzu, Suzuki, Hino, Jaguar, Land Rover, and Volvo brands. The company was founded in 1987 and is based in Auckland, New Zealand.
Summary
Investors in Rumbleon were disappointed by the company’s second quarter fiscal year 2023 earnings results, as total revenue decreased by 29.9% year-over-year and net income came in at a loss of USD 13.6 million, compared to a profit of USD 14.0 million during the same period in the previous year. As a result, the stock price moved down on the same day. It is clear that the company is facing challenging economic conditions and further long-term recovery of the stock price will depend on the company’s ability to turn around its performance. Investors should closely monitor upcoming earnings reports for any signs of improvement.
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