CarLotz, Inc. (LOTZ) has gone from $12 to less than $4.5 in less than a year. The company is currently trading highly undervalued and has tons of cash in the balance sheet. More than 55% of the company's market capitalization is represented by cash
CarLotz Is A Buy At 1.15x Forward Sales
Summary
- CarLotz, Inc. runs a vehicle consignment and remarketing business.
- Over the last six months, LOTZ opened a significant number of new hub locations. The number of employees also increased, and major marketing initiatives took place.
- If we assume a share price of $4, close to 66% of the company’s share price is represented by cash or assets that the company can sell.
- If we assume a market capitalization of $450 million, the enterprise value is equal to $230 million. With sales of $200 million, the company’s EV/Sales is 1.15x, which is cheap.
- Many individuals in social media are claiming that the company is highly undervalued.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of LOTZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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