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RumbleON (RMBL)
NASDAQ:RMBL
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RumbleON
(NASDAQ:RMBL)
43Neutral
Positive Factors
Business Model
RumbleOn is the only omni-channel platform in the powersports market.
Cash Flow
The company has generated positive operating cash flow this year, with $69M generated year-to-date versus a cash outflow of $19M during the year-ago period.
Financial Performance
Management's cost containment efforts are expected to drive a meaningful portion of the projected AEBITDA increase for 2025.
Negative Factors
Leadership Stability
RumbleOn has had four CEOs in the past year and a half, indicating instability in leadership.
Sales Performance
Total Powersports vehicle unit sales of 15,348 missed the estimate of 15,796 units and represented a year-over-year decline of about 13%.
Stock Valuation
Equity dilution from the transaction and a slightly lower AEBITDA target multiple contribute to the lowering of the price target from $7 to $6.
RumbleON (RMBL) vs. S&P 500 (SPY)
Market Cap
$106.56M
Dividend YieldN/A
Average Volume (3M)108.29K
Price to Earnings (P/E)―
Beta (1Y)2.56
Revenue Growth-12.27%
EPS Growth79.29%
CountryUS
Employees1,928
SectorConsumer Cyclical
Sector Strength54
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-2.21
Shares Outstanding37,737,800
10 Day Avg. Volume117,586
30 Day Avg. Volume108,291
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.10
Price to Cash Flow (P/CF)1.00
P/FCF Ratio0.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside79.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
RumbleON Business Overview & Revenue Model
Company DescriptionRumbleON, Inc. (RMBL) operates as an innovative e-commerce platform facilitating the buying and selling of vehicles, primarily focusing on motorcycles and other powersports. The company leverages technology to streamline the process of purchasing, financing, and trading vehicles online, connecting consumers and dealers across the United States. RumbleON aims to simplify the vehicle transaction process, offering a seamless experience for users seeking to sell or acquire vehicles with minimal hassle.
How the Company Makes MoneyRumbleON generates revenue primarily through the resale of vehicles purchased from consumers and dealers. The company buys vehicles directly from sellers, often at a lower price, and then resells them at a higher price through its online platform, capturing the margin between the purchase and sale price. Additionally, RumbleON offers financing, warranty, and insurance products, which provide supplementary income streams. The company's partnerships with dealerships and financial institutions also play a critical role in expanding its reach and enhancing its service offerings.
RumbleON Financial Statement Overview
Summary
RumbleON is experiencing significant financial challenges, with declining revenues and consistent net losses. The company has high leverage and low equity, though it has shown some improvement in cash flow. Overall, the financial stability is under pressure, requiring focus on revenue growth and profitability.Income Statement
RumbleON has faced challenges in maintaining revenue growth, with a significant decline in revenues from 2022 to 2024. The gross profit margin has remained relatively healthy, but the company has struggled with profitability, as indicated by persistent net losses and negative EBIT and EBITDA margins. Despite some improvement in reducing losses from 2023 to 2024, the overall trajectory indicates difficulty in achieving sustainable profitability.35
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a potential risk. Stockholders' equity has diminished considerably over the years, and the equity ratio is weak. While the company has managed to reduce total debt and net debt recently, the financial stability remains under pressure due to limited equity and high liabilities.45
Neutral
Cash Flow
RumbleON's cash flow has shown improvement, with a positive operating cash flow and free cash flow in 2024, marking a turnaround from previous negative figures. The free cash flow to net income ratio is favorable, suggesting efficient cash management relative to net losses. However, the company must sustain positive cash flows to ensure long-term financial health.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.21B | 1.37B | 1.79B | 934.73M | 416.43M | Gross Profit |
| 314.30M | 359.90M | 452.66M | 158.18M | 31.63M | EBIT |
| -14.70M | -69.50M | 67.52M | -12.95M | -24.17M | EBITDA |
| -400.00K | -55.90M | -230.40M | -8.88M | -16.22M | Net Income Common Stockholders |
| -78.60M | -215.50M | -261.51M | -9.72M | -31.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 85.30M | 58.90M | 48.58M | 48.97M | 1.47M | Total Assets |
| 755.20M | 926.30M | 1.03B | 1.05B | 76.98M | Total Debt |
| 378.80M | 771.60M | 730.15M | 522.39M | 58.20M | Net Debt |
| 293.50M | 712.70M | 681.58M | 473.42M | 56.73M | Total Liabilities |
| 718.50M | 820.70M | 821.20M | 614.03M | 72.41M | Stockholders Equity |
| 36.70M | 105.60M | 206.01M | 431.29M | 4.57M |
| Cash Flow | Free Cash Flow | |||
| 97.40M | -54.70M | -31.51M | -45.58M | 14.82M | Operating Cash Flow |
| 99.40M | -35.50M | -18.89M | -35.99M | 17.14M | Investing Cash Flow |
| -2.00M | -19.10M | -82.20M | -376.56M | -2.28M | Financing Cash Flow |
| -80.60M | 99.50M | 107.70M | 461.00M | -18.07M |
RumbleON Technical Analysis
Negative
2.78
Price Trends
3.95
Negative
4.78
Negative
4.60
Negative
Market Momentum
-0.34
Positive
27.96
Positive
9.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMBL, the sentiment is Negative. The current price of 2.78 is below the 20-day moving average (MA) of 3.45, below the 50-day MA of 3.95, and below the 200-day MA of 4.60, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 27.96 is Positive, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMBL.
RumbleON Risk Analysis
RumbleON disclosed 35 risk factors in its most recent earnings report. RumbleON reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RumbleON Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $55.27B | 38.60 | 19.28% | ― | 11.00% | 6.53% | |
73 Outperform | $719.56M | 15.90 | 9.60% | ― | 4.35% | -58.76% | |
70 Outperform | $45.38B | 143.94 | 27.94% | ― | 26.94% | -57.88% | |
62 Neutral | $2.06B | 44.14 | 4.80% | ― | 6.47% | ― | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
49 Neutral | $148.34M | ― | -22.31% | ― | 10.64% | 38.48% | |
43 Neutral | $106.56M | ― | -110.47% | ― | -12.27% | 79.29% |
* Consumer Cyclical Sector Average
Performance Comparison
RMBL
RumbleON
2.78
-3.28
-54.13%
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Copart
57.47
0.10
0.17%
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OPENLANE
20.20
2.84
16.36%
TRUE
TrueCar
1.69
-1.72
-50.44%
CVNA
Carvana Co
226.32
143.92
174.66%
CARS
Cars
11.64
-5.44
-31.85%
RumbleON Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -26.84% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging environment with significant revenue declines and pressures on margins. However, the company has made notable progress in inventory reduction and improving EBITDA. Concerns about tariffs and consumer confidence remain, but actions taken have strengthened the company's financial foundation.Highlights
Exceeded Inventory Reduction Goal
RumbleOn exceeded their goal of reducing new inventories by $50 million, achieving a reduction of over $80 million, positioning them better for 2025.
Improved Adjusted EBITDA
Adjusted EBITDA for Q4 was $2.2 million, marking an improvement from a slight loss in the same quarter last year.
Repaid Convertible Notes
Shortly after fiscal 2024, RumbleOn repaid $38.8 million of convertible notes, strengthening their financial position.
Increased Transportation Services Revenue
Wholesale Express revenue increased by 3.1% in Q4 compared to the prior year, driven by more vehicles transported.
Lowlights
Revenue Decline
Q4 revenue was $269.6 million, representing a 13.4% year-over-year decline, attributed to lower major unit volume.
Challenges in Powersports Dealership Group
Retail of Powersports units fell by 9.3% in Q4, with new unit sales dropping 9.5% and pre-owned unit sales down 8.8%.
Decreased Gross Margins
New unit gross margins dropped from 13.2% to 10.8%, while pre-owned margins were 9.8%, affected by overstocking and exiting non-core product lines.
Tariff and Consumer Confidence Concerns
Potential tariffs and declining consumer confidence pose risks, affecting affordability and demand for products.
Company Guidance
During the RumbleOn, Inc. fourth quarter and full-year 2024 earnings call, the company provided several key metrics and insights into its financial performance and strategic initiatives. RumbleOn reported a Q4 revenue of $269.6 million, a 13.4% decrease year-over-year, and an adjusted EBITDA of $2.2 million, marking an improvement from a slight loss in the same quarter last year. The company successfully reduced new inventories by over $80 million, exceeding its initial goal of a $50 million reduction for the year. The Powersports Dealership Group retailed approximately 14,100 major units in Q4, reflecting a 9.3% decline from the previous year, with new and pre-owned unit sales down 9.5% and 8.8%, respectively. Gross margins for new units decreased to 10.8% from 13.2%, while pre-owned gross margins improved to 9.8% from a negative 10.3% due to prior inventory write-downs. The asset light vehicle transportation segment, Wholesale Express, saw a 3.1% increase in revenue despite a 2.9% decline in gross profit. For the full year, the company reported revenue of approximately $1.2 billion and adjusted EBITDA of $32.9 million, down from $1.4 billion and $37.4 million, respectively, in the prior year. The balance sheet ended with $96.7 million in total cash and $182.1 million in non-vehicle debt, with total available liquidity of $242.9 million. The call also addressed strategic shifts, including a commitment to discontinue reference to the Vision 2026 plan and focus on driving profitability and shareholder value, amidst macroeconomic challenges and tariff uncertainties.RumbleON Corporate Events
Executive/Board Changes
RumbleON Announces Leadership Changes with CFO Departure
Negative
Apr 2, 2025
On March 31, 2025, RumbleOn, Inc. announced the termination of its Chief Financial Officer, Tiffany Kice, and Chief Legal Counsel, Brandy Treadway, effective April 2, 2025. Michael Quartieri, the Chairman and CEO, will temporarily assume the role of CFO until a successor is appointed. The company plans to enter into separation agreements with both executives, reflecting a significant leadership change.
Executive/Board ChangesBusiness Operations and Strategy
RumbleON Appoints Rachel Richards as New Director
Positive
Mar 18, 2025
On March 17, 2025, RumbleOn, Inc. appointed Rachel Richards as a director to fill the vacancy left by Michael Kennedy’s resignation. Richards, who has extensive experience in the automotive industry, was also appointed to the Nominating & Corporate Governance Committee and will stand for re-election at the 2025 annual meeting. Her appointment is expected to strengthen the company’s governance and strategic direction.
Executive/Board ChangesBusiness Operations and Strategy
RumbleON Leadership Changes Amidst Listing Challenges
Neutral
Jan 16, 2025
On January 13, 2025, RumbleOn, Inc. announced a series of leadership changes following the departure of its CEO, Michael Kennedy. Michael Quartieri has been appointed as the new CEO, bringing a wealth of financial and strategic planning experience from his previous roles. Cameron Tkach has been promoted to Executive Vice President and Chief Operating Officer, leveraging his extensive background in the powersports industry. Becca Polak has been named Vice Chairman and Lead Independent Director. These changes aim to enhance RumbleOn’s growth and operational efficiency in the powersports market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.