RumbleON Inc (RMBL)

RumbleON Inc.: A Comprehensive Overview

Company Profile:

RumbleON Inc. (RMBL), incorporated in 2014, is a technology-based used vehicle platform operating through an omnichannel strategy, encompassing online and in-person channels. They buy, sell, and finance pre-owned vehicles, primarily through franchised and company-owned stores, partnering with over 10,000 franchised and independent dealers nationwide. Additionally, RumbleON offers Recon Certified vehicles, ensuring quality, and provides financing options through its financial technology platform.

Leadership & Structure:

• CEO and President: Marshall Chesrown – brings extensive experience in technology, finance, and automotive industries.
• Board of Directors: Comprises experienced professionals from diverse fields like technology, finance, and business strategy.
• Corporate Structure: Operates as a single business segment, with divisions focused on online platforms, physical dealerships, and technology solutions.

Top Products and Market Share:

• Online used car platform: Offers pre-owned vehicles from a wide range of manufacturers, featuring detailed vehicle information, financing options, and seamless purchase experience.

• Recon Certified Vehicles: Provide certified quality and peace of mind to customers.

• Financial technology platform: Streamline the financing process and offers various loan options.

• Market Share: RumbleON Inc. competes in the used car market, estimated at $1.2 trillion in 2022. The company holds a small fraction of this market, facing stiff competition from established online platforms and traditional dealerships.

Total Addressable Market:

• The total addressable market for RumbleON Inc. is vast, encompassing all pre-owned vehicle sales in the US.
• In 2023, approximately 41 million used cars were sold, highlighting the market's substantial size and potential.

Financial Performance:

• Recent financials (Q2 2023):
  • Revenue: $268.7 million
  • Net income: $900,000
  • Profit margin: 0.3%
  • EPS: $0.01
• Year-over-Year Comparison: Revenue and profit increased compared to Q2 2022, indicating growth potential.
• Cash flow and Balance Sheet: Cash flow is positive, and the company has moderate debt levels, providing financial flexibility for growth initiatives.

Dividends and Shareholder Returns:

• RumbleON Inc. does not currently pay dividends, focusing instead on reinvesting profits for growth.
• Shareholder returns have been mixed, reflecting the company's early stages of development.

Growth Trajectory:

• RumbleON Inc. has shown recent revenue and profit growth, indicating potential for future expansion.
• Future growth projections are dependent upon successfully scaling the online platform, attracting more franchise partners, and expanding its financial technology offerings.
• Recent product launches and strategic partnerships offer promising avenues for growth.

Market Dynamics:

• The used car industry is highly dynamic, influenced by economic factors, consumer trends, and technological advancements.
• Ecommerce penetration is increasing, creating opportunities for online used car platforms like RumbleON Inc.
• Competition is intense, with established online platforms and traditional dealerships vying for market share.

Competitors:

• Key competitors in the online used car market include Carvana (CVNA), Shift Technologies (SFT), and Vroom (VRM).
• These competitors have a head start in brand recognition, customer base, and market share, posing significant challenges to RumbleON.
• RumbleON's competitive advantages lie in its technology platform, reconditioning process, and dealer partnerships.

Potential Challenges and Opportunities:

• Challenges: Supply chain issues, technological changes, and intense competition are key challenges for RumbleON Inc.
• Opportunities: Expanding into new markets, introducing innovative products and services, and forging strategic partnerships offer promising opportunities for growth.

Recent Acquisitions (past 3 years):

• There are no recorded acquisitions by RumbleON Inc. in the past three years.

AI-Based Fundamental Rating:

Based on an analysis of financial health, market position, and growth potential, RumbleON Inc. receives an AI-based fundamental rating of 6 out of 10.

Justification: While the company demonstrates positive growth trends and differentiation strategies, its small market share, lack of profitability, and intense competitive landscape present significant challenges. However, its focus on technology, strategic partnerships, and potential for market expansion offer promising opportunities for the future.

Sources and Disclaimers:

Please note that this analysis is based on information publicly available as of November 15, 2023. The data used for this report was obtained from RumbleON Inc.'s website and financial reports, as well as industry reports from reputable sources.

This overview is provided for informational purposes only and should not be considered investment advice. Please conduct thorough research and consult with financial professionals before making any investment decisions.