Vroom Stock Intrinsic Value – Vroom Files Preliminary Proxy Statement for Upcoming Reverse Stock Split
December 23, 2023
🌥️Trending News
Vroom ($NASDAQ:VRM) has submitted its initial proxy statement concerning a proposed reverse stock split. Vroom is an automotive e-commerce company that offers the convenience of buying and selling used cars online. It allows customers to browse, finance, purchase, and have their car delivered, all through its online platform. The proposed reverse stock split is structured to reduce the number of existing shares and increase the price of the company’s common stock. The company believes that the proposed reverse stock split would enable it to meet the continued listing requirements of the Nasdaq Capital Markets, as well as improve its liquidity and marketability.
If approved, every ten shares of Vroom common stock will be converted into one share of the company’s common stock. This will allow Vroom to maintain a more consistent value for its stock and increase investor confidence. The proxy statement will provide shareholders with all the necessary information regarding the reverse stock split, as well as provide voting instructions on how to vote on the proposal. Shareholders are urged to review the proxy statement carefully and vote as soon as possible.
Share Price
The stock opened at $0.7 and closed at $0.7, representing a 1.8% decrease from the prior closing price of $0.7. This move is seen as a sign that the company is seeking to increase the price of its shares through the reverse split. If approved, the reverse split would reduce the number of VROOM shares outstanding, thus increasing the value of each remaining share and bringing it closer to the company’s target price. This move could be beneficial to both existing and prospective investors, since a higher stock price could increase the likelihood that more individuals will purchase VROOM stock. 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 Stock Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of VROOM‘s financials. According to our proprietary Valuation Line, the intrinsic value of VROOM share is around $3.2. This is lower than the current price of $0.7, indicating that the stock is undervalued by 78.2%. We believe this represents an attractive opportunity for investors to capitalize on VROOM’s potential at a discount. We recommend that investors carefully consider VROOM as part of their portfolio and take advantage of the current undervaluation. More…
Peers
Vroom Inc. is an online retailer of used cars, headquartered in New York City. The company was founded in 2013, and competes with other online used car retailers such as G A Holdings Ltd, Marshall Motor Holdings PLC, and Grand Baoxin Auto Group Ltd.
– G A Holdings Ltd ($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
VROOM Inc recently filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) for a proposed reverse stock split. This would involve the company reducing the number of its outstanding shares while also increasing the share price. If approved by shareholders, this move could make the stock more attractive to investors. It could also potentially increase trading liquidity in the stock.
However, it should also be noted that the reverse split could cause some existing shareholders to incur a capital loss, and investors should be aware of the potential risks before making any decisions. Therefore, it is important for investors to conduct their own analysis before investing in VROOM.
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