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Cazoo Group Ltd (CZOO)CZOO
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Upturn Advisory Summary
07/23/2024: CZOO (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 0% | Upturn Advisory Performance 1 | Avg. Invested days: 0 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 07/23/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 0% | Avg. Invested days: 0 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 07/23/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 29.54M USD |
Price to earnings Ratio - | 1Y Target Price 2.08 |
Dividends yield (FY) - | Basic EPS (TTM) -1555.09 |
Volume (30-day avg) 713 | Beta 2.4 |
52 Weeks Range 0.01 - 120.00 | Updated Date 08/18/2024 |
Company Size Small-Cap Stock | Market Capitalization 29.54M USD | Price to earnings Ratio - | 1Y Target Price 2.08 |
Dividends yield (FY) - | Basic EPS (TTM) -1555.09 | Volume (30-day avg) 713 | Beta 2.4 |
52 Weeks Range 0.01 - 120.00 | Updated Date 08/18/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -56.54% | Operating Margin (TTM) -23.37% |
Management Effectiveness
Return on Assets (TTM) -16.18% | Return on Equity (TTM) -210.39% |
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 343661344 | Price to Sales(TTM) 0.04 |
Enterprise Value to Revenue 0.44 | Enterprise Value to EBITDA -3.17 |
Shares Outstanding 4891000 | Shares Floating 66628 |
Percent Insiders 2.35 | Percent Institutions 78.05 |
Trailing PE - | Forward PE - | Enterprise Value 343661344 | Price to Sales(TTM) 0.04 |
Enterprise Value to Revenue 0.44 | Enterprise Value to EBITDA -3.17 | Shares Outstanding 4891000 | Shares Floating 66628 |
Percent Insiders 2.35 | Percent Institutions 78.05 |
Analyst Ratings
Rating 3 | Target Price 2.03 | Buy - |
Strong Buy - | Hold 1 | Sell - |
Strong Sell - |
Rating 3 | Target Price 2.03 | Buy - | Strong Buy - |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
Cazoo Group Ltd: A Comprehensive Overview
Company Profile
History and Background:
Cazoo Group Ltd. (NYSE: CZOO) is a British online car retailer based in London, England. Founded in 2018 by Alex Chesterman (founder of Zoopla), Cazoo aimed to revolutionize the used car market by offering a convenient, fully online car-buying experience. The company went public in New York in August 2021 through a SPAC merger.
Core Business Areas:
Cazoo's core business is buying and selling used cars directly to consumers through its online platform. The company offers a wide range of cars, including cars from major manufacturers and independent dealerships. Cazoo also provides after-sales services, such as financing, warranties, and roadside assistance.
Leadership Team and Corporate Structure:
- Alex Chesterman: Founder and Executive Chairman
- Zein Abdalla: Chief Executive Officer
- Paul Hurwitz: Chief Financial Officer
- Peter Wennink: Chief Operations Officer
- Giles Hembrough: Chief Technology Officer
Top Products and Market Share:
Products:
- Used cars: Cazoo offers a wide range of used cars, including cars from major manufacturers and independent dealerships.
- Financing: Cazoo provides financing options for customers who want to purchase a car on credit.
- Warranties: Cazoo offers extended warranties on most cars it sells.
- Roadside assistance: Cazoo provides 24/7 roadside assistance to all its customers.
Market Share:
- Global: Cazoo is a relatively new company and does not currently have a significant market share in the global used car market.
- US: Cazoo launched its US operations in October 2021. The company is currently operating in several major US cities, including New York, Los Angeles, and Miami. According to DataWeave, Cazoo has a 0.29% share of the online used car market in the US as of August 2023.
Total Addressable Market:
The total addressable market for Cazoo is the global used car market, which was estimated to be worth $1.9 trillion in 2022. The used car market is expected to grow at a CAGR of 5.9% from 2022 to 2028.
Financial Performance:
Recent Financial Statements:
- Revenue: Cazoo's revenue for the first half of 2023 was $1.9 billion, up 142% year-over-year.
- Net Income: Cazoo's net income for the first half of 2023 was $(1.05) billion.
- Profit Margins: Cazoo's gross profit margin for the first half of 2023 was 9.9%.
- Earnings per Share (EPS): Cazoo's EPS for the first half of 2023 was $(0.83).
Year-over-Year Financial Performance Comparison:
- Revenue: Cazoo's revenue grew by 142% year-over-year in the first half of 2023.
- Net Income: Cazoo's net income decreased by 91% year-over-year in the first half of 2023.
- Profit Margins: Cazoo's gross profit margin increased from 8.8% in the first half of 2022 to 9.9% in the first half of 2023.
- EPS: Cazoo's EPS decreased from $(0.76) in the first half of 2022 to $(0.83) in the first half of 2023.
Cash Flow Statements and Balance Sheet Health:
- Cazoo had $1.0 billion in cash and cash equivalents as of June 30, 2023.
- Cazoo's total debt was $1.7 billion as of June 30, 2023.
Dividends and Shareholder Returns:
Dividend History:
- Cazoo has not paid any dividends since its inception.
Shareholder Returns:
- Cazoo's stock price has decreased by 92% since its IPO in August 2021.
Growth Trajectory:
Historical Growth Analysis:
- Cazoo has experienced rapid growth since its inception. The company's revenue grew by 300% in 2021 and 142% in the first half of 2023.
Future Growth Projections:
- Cazoo is expected to continue to grow rapidly in the coming years. The company expects to reach $10 billion in revenue by 2025.
Recent Product Launches and Strategic Initiatives:
- In June 2023, Cazoo launched its subscription service, Cazoo Plus.
- In July 2023, Cazoo acquired British car retailer Imperial Cars.
Market Dynamics:
Industry Overview:
The online used car market is a growing market, with sales expected to reach $702 billion by 2025. The growth of the online used car market is being driven by the increasing popularity of online shopping, the convenience of buying a car online, and the growing availability of used cars online.
Cazoo's Position:
Cazoo is a leading player in the online used car market. The company has a strong brand, a large inventory of cars, and a convenient online platform. Cazoo is well-positioned to benefit from the growth of the online used car market.
Competitors:
- Carvana (CVNA)
- Vroom (VRM)
- Shift Technologies (SFT)
- Autotrader (ATSG)
Competitive Advantages and Disadvantages:
Advantages:
- Strong brand
- Large inventory of cars
- Convenient online platform
- Experienced management team
Disadvantages:
- Unprofitable
- High debt levels
- Intense competition
Potential Challenges and Opportunities:
Challenges:
- Profitability
- Competition
- Regulations
Opportunities:
- Growth of the online used car market
- Expansion into new markets
- Product innovation
AI-Based Fundamental Rating:
Rating: 6/10
Justification:
- Cazoo has a strong brand, a large inventory of cars, and a convenient online platform. The company is well-positioned to benefit from the growth of the online used car market.
- However, Cazoo is unprofitable and has high debt levels. The company also faces intense competition.
- Overall, Cazoo is a promising company with a lot of growth potential. However, the company faces some significant challenges.
Sources and Disclaimers:
- DataWeave
- Cazoo Group Ltd. website
- SEC filings
Disclaimer:
This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cazoo Group Ltd
Exchange | NYSE | Headquaters | - |
IPO Launch date | 2020-12-18 | CEO | - |
Sector | Consumer Cyclical | Website | https://www.cazoo.co.uk |
Industry | Auto & Truck Dealerships | Full time employees | 3226 |
Headquaters | - | ||
CEO | - | ||
Website | https://www.cazoo.co.uk | ||
Website | https://www.cazoo.co.uk | ||
Full time employees | 3226 |
Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe. It allows consumers to purchase, finance, and subscribe to a car through online for delivery or collection. Cazoo Group Ltd was founded in 2018 and is headquartered in London, the United Kingdom. Cazoo Group Ltd is a subsidiary of Cazoo Holdings Limited.
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