Vroom Intrinsic Value Calculator – Vroom Receives Nasdaq Notice of Non-Compliance, Raising Questions About Its Future
December 28, 2023
🌥️Trending News
Vroom ($NASDAQ:VRM), an online used vehicle platform, received a notice of non-compliance from Nasdaq on Wednesday. The notification indicated that Vroom did not meet certain requirements to remain listed on the exchange. This news has raised questions about the future of the company and its stock. Through its website and app, customers can shop for used cars from a large selection of makes and models, as well as apply for financing and schedule delivery.
Although Vroom is working to address the issues outlined in the notification, it remains unclear whether the company will be able to regain compliance with the exchange’s listing requirements. If Vroom fails to do so, its stock could be delisted, resulting in a sharp decline in price. Investors should stay tuned for further updates from Vroom and Nasdaq as the company works to address this issue.
Market Price
On Tuesday, VROOM’s stock opened at $0.7 and closed at $0.6, plunging by 15.0% from its prior closing price of 0.7. This decline was in response to the Nasdaq issuing a Notice of Non-Compliance to VROOM. Expressing concern over the company’s financial standing, investors are uncertain if VROOM will be able to remain listed on the Nasdaq. The coming weeks will be critical for VROOM as investors wait to see what steps the company takes to regain compliance with the Nasdaq’s listing requirements. Vroom_Receives_Nasdaq_Notice_of_Non-Compliance_Raising_Questions_About_Its_Future”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vroom. More…
| Total Revenues | Net Income | Net Margin |
| 866.63 | -199.45 | -35.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vroom. More…
| Operations | Investing | Financing |
| -511.59 | 154.5 | 42.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vroom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.65k | 1.39k | 1.85 |
Key Ratios Snapshot
Some of the financial key ratios for Vroom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -12.8% | – | -17.7% |
| FCF Margin | ROE | ROA |
| -60.9% | -32.1% | -5.8% |
Analysis – Vroom Intrinsic Value Calculator
At GoodWhale, we have conducted an analysis of VROOM’s finances, and have arrived at an intrinsic value of VROOM’s share of around $3.2 using our proprietary Valuation Line. This means that VROOM stock is currently being traded at $0.6, representing an undervaluation of 81.3%. This presents a great opportunity for investors to capitalize on this discrepancy between the intrinsic and market values of the stock. We believe that this discrepancy is caused by the lack of awareness of the company’s potential, and by investing in VROOM now, investors can benefit from future appreciation as the stock’s market value catches up to its intrinsic value. Vroom_Receives_Nasdaq_Notice_of_Non-Compliance_Raising_Questions_About_Its_Future”>More…
Peers
Vroom Inc. is an online retailer of used cars, headquartered in New York City. The company was founded in 2013, and competes with other online used car retailers such as G A Holdings Ltd, Marshall Motor Holdings PLC, and Grand Baoxin Auto Group Ltd.
– G A Holdings Ltd ($SEHK:08126)
A. H. Belo Corporation is a media company that owns and operates newspapers in the United States. The company was founded in 1842 and is headquartered in Dallas, Texas. A. H. Belo operates through two segments: Newspaper and Digital Media. The Newspaper segment publishes The Dallas Morning News, a daily newspaper; and The Providence Journal, a daily newspaper. The Digital Media segment provides digital marketing services, including website design and development, search engine optimization, and social media management; and produces video content, as well as offers digital marketing solutions, such as email marketing, pay-per-click advertising, and display advertising.
– Marshall Motor Holdings PLC ($SEHK:01293)
Grand Baoxin Auto Group Ltd is a Chinese car dealership and manufacturer. The company has a market cap of 1.11 billion as of 2022 and a return on equity of 11.81%. Grand Baoxin Auto Group Ltd is involved in the sales, service, and production of vehicles. The company has over 100 dealerships in China.
Summary
Investing in Vroom can be a risky proposition, as evidenced by recent news that the company has received a notice of non-compliance from the Nasdaq. The stock price reacted negatively to this news, and investors should be aware that there is potential for further drops if the company does not take the necessary corrective actions. It is important for investors to do their research and understand the potential risks associated with investing in Vroom before making a decision.
In addition, any potential investors should monitor the company’s progress for any further developments and adjust their portfolios accordingly. Ultimately, investors should use caution when considering buying shares of Vroom, as the situation is still uncertain.
