ACV Auctions (NasdaqGS:ACVA) - Share price, News & Analysis

ACVA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

ACVA Stock Overview

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles.

Rewards

Trading at 84.6% below our estimate of its fair value

Revenue is forecast to grow 26.31% per year

Revenue grew by 66.8% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

ACV Auctions Competitors

Copart

NasdaqGS:CPRT

US$26.2b

IAA

NYSE:IAA

US$4.9b

KAR Auction Services

NYSE:KAR

US$1.8b

LKQ

NasdaqGS:LKQ

US$14.4b

Price History & Performance

Summary of all time highs, changes and price drops for ACV Auctions
Historical stock prices
Current Share Price	US$8.40
52 Week High	US$28.66
52 Week Low	US$7.52
Beta	0
1 Month Change	-40.00%
3 Month Change	-24.46%
1 Year Change	-68.89%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-73.12%

Recent News & Updates

May 10

ACV Auctions Doubles Down On Market Share Growth For 2022

ACV Auctions went public in March 2021, raising $414 million in gross proceeds. The firm provides a car auction and services platform to U.S.-based car dealerships. ACVA has grown revenue but is generating higher operating losses, a negative in the current market environment. I'm on Hold for ACVA for the near term as it plans to continue its elevated spending to compete for market share.

Shareholder Returns

	ACVA	US Commercial Services	US Market
7D	-5.4%	2.3%	2.7%
1Y	-68.9%	-3.2%	-8.1%

Return vs Industry: ACVA underperformed the US Commercial Services industry which returned -5.5% over the past year.

Return vs Market: ACVA underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is ACVA's price volatile compared to industry and market?
ACVA volatility
ACVA Average Weekly Movement	9.6%
Commercial Services Industry Average Movement	7.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: ACVA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ACVA's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2014	n/a	George Chamoun	https://www.acvauctions.com

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

ACV Auctions Fundamentals Summary

How do ACV Auctions's earnings and revenue compare to its market cap?
ACVA fundamental statistics
Market Cap	US$1.33b
Earnings (TTM)	-US$90.30m
Revenue (TTM)	US$392.41m

3.4x

P/S Ratio

-14.6x

P/E Ratio

Is ACVA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACVA income statement (TTM)
Revenue	US$392.41m
Cost of Revenue	US$339.04m
Gross Profit	US$53.37m
Other Expenses	US$143.68m
Earnings	-US$90.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.57
Gross Margin	13.60%
Net Profit Margin	-23.01%
Debt/Equity Ratio	11.3%

How did ACVA perform over the long term?

See historical performance and comparison

Valuation

Is ACV Auctions undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ACVA ($8.4) is trading below our estimate of fair value ($54.41)

Significantly Below Fair Value: ACVA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ACVA is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: ACVA is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACVA's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: ACVA is overvalued based on its PB Ratio (2.5x) compared to the US Commercial Services industry average (1.8x).

Future Growth

How is ACV Auctions forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

64.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACVA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ACVA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ACVA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ACVA's revenue (26.3% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ACVA's revenue (26.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ACVA is forecast to be unprofitable in 3 years.

Past Performance

How has ACV Auctions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-192.5%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: ACVA is currently unprofitable.

Growing Profit Margin: ACVA is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ACVA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare ACVA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACVA is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (34.3%).

Return on Equity

High ROE: ACVA has a negative Return on Equity (-16.92%), as it is currently unprofitable.

Financial Health

How is ACV Auctions's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ACVA's short term assets ($872.5M) exceed its short term liabilities ($422.1M).

Long Term Liabilities: ACVA's short term assets ($872.5M) exceed its long term liabilities ($63.6M).

Debt to Equity History and Analysis

Debt Level: ACVA has more cash than its total debt.

Reducing Debt: Insufficient data to determine if ACVA's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ACVA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ACVA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is ACV Auctions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACVA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACVA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACVA has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Commercial Services industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

George Chamoun (46 yo)

5.67yrs

Tenure

US$16,988,089

Compensation

Mr. George G. Chamoun has been Chief Executive Officer and Director at ACV Auctions Inc. since September 2016. Prior to departing Synacor, Inc. in September 2016, Mr. Chamoun served as its President of Ser...

CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD16.99M) is above average for companies of similar size in the US market ($USD5.45M).

Compensation vs Earnings: George's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: ACVA's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: ACVA's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31