- CarLotz presents itself as a consignment store for used vehicles.
- LOTZ will most likely suffer a decrease in EBITDA margins until the price of new cars increases.
- The company is that cheap because investors believe that wholesale prices could increase even more.
- In 2021, there has been no significant increase in the number of vehicles for sale, which, in my opinion, indicates that the management is not that optimistic about the future.
- LOTZ trades close to 8.8x 2023 EBITDA.
For further details see:
Inflation May Push CarLotz Down To Lower Than 1.9x Cash Per Share