Analysts rate RumbleON Inc. (RMBL:NSD) with a Strong Buy rating and a $37 target

STA Research
by: STA Research
RumbleON Inc.

Based on the RumbleON stock forecasts from 5 analysts, the average analyst RumbleON stock price target is USD 37.00 over the next 12 months. RumbleON Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of RMBL stock forecast is Bearish, which is based on 2 positive signals and 8 negative signals. At the last closing, RumbleON stock price was USD 23.66RumbleON stock price has changed by -0.01% over the past week, +6.96% over the past month and -33.30% over the last year.

About RumbleON Inc. (RMBL:NSD):

RumbleON, Inc. operates a technology-based omnichannel platform to aggregate and distribute pre-owned vehicles in North America. It operates through three segments: Powersports, Automotive, and Vehicle Logistics. The Powersports segment distributes motorcycles. The Automotive segment distributes cars and trucks. The Vehicle Logistics segment provides automotive transportation services between dealerships and auctions. Its platform offers ability to buy, sell, trade, and finance new and pre-owned vehicles online or in store for dealers and consumers. The company was formerly known as Smart Server, Inc. and changed its name to RumbleON, Inc. in February 2017. RumbleON, Inc. was incorporated in 2013 and is based in Irving, Texas.

 

What we like:

Underpriced compared to book value:

RumbleON stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive free cash flow:

RumbleON stock had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization:

RumbleON stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility:

The total returns for RumbleON stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

RMBL stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor capital utilization:

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the RMBL stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

RMBL stock had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

RMBL stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

RMBL stock has shown below median earnings growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.