Carvana
Market Cap
US$12.1b
Last Updated
2019/10/20 00:44 UTC
Data Sources
Company Financials +
Executive Summary
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States.
Snowflake
Fundamentals
High growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Carvana's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.2%
CVNA
1.5%
US Specialty Retail
0.4%
US Market
1 Year Return
83.8%
CVNA
8.0%
US Specialty Retail
6.9%
US Market
Return vs Industry: CVNA exceeded the US Specialty Retail industry which returned 8% over the past year.
Return vs Market: CVNA exceeded the US Market which returned 6.9% over the past year.
Shareholder returns
| CVNA | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 1.5% | 0.4% |
| 30 Day | -2.2% | 3.5% | -1.1% |
| 90 Day | 26.3% | 4.5% | -0.5% |
| 1 Year | 83.8%83.8% | 9.8%8.0% | 9.3%6.9% |
| 3 Year | n/a | 42.6%35.3% | 45.8%36.4% |
| 5 Year | n/a | 57.5%43.6% | 62.9%45.1% |
Price Volatility Vs. Market
How volatile is Carvana's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Much Are Carvana Co. (NYSE:CVNA) Insiders Spending On Buying Shares?1 month ago | Simply Wall St
Calculating The Intrinsic Value Of Carvana Co. (NYSE:CVNA)2 months ago | Simply Wall St
Carvana Co. (NYSE:CVNA): When Will It Breakeven?Valuation
Is Carvana undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: CVNA ($73.85) is trading below our estimate of fair value ($182.18)
Significantly Undervalued: CVNA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CVNA is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.
PE vs Market: CVNA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
Low PEG Ratio: Insufficient data to calculate CVNA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CVNA is overvalued based on its PB Ratio (27.5x) compared to the US Specialty Retail industry average (1.4x).
Next Steps
Future Growth
How is Carvana forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
62.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CVNA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).
Earnings vs Market: CVNA is forecast to become profitable over the next 3 year, which is considered above average market growth.
High Growth Earnings: CVNA's loss is forecast to worsen by 0% next year.
Revenue vs Market: CVNA's revenue (33.4% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: CVNA's revenue (33.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: Insufficient data to determine if CVNA's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Carvana performed over the past 5 years?
-20.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CVNA is unprofitable, and losses have increased over the past 5 years at a rate of -20.7% per year.
Accelerating Growth: Unable to compare CVNA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CVNA is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (8.3%).
Return on Equity
High ROE: CVNA has a negative Return on Equity (-75.54%), as it is currently unprofitable.
Return on Assets
ROA vs Industry: CVNA is currently unprofitable, so its Return on Assets is negative.
Return on Capital Employed
ROCE Improving: CVNA is currently unprofitable, so its Return on Capital Employed is negative.
Next Steps
Financial Health
How is Carvana's financial position?
Financial Position Analysis
Short Term Liabilities: CVNA's short term assets ($957.5M) exceeds its short term liabilities ($249.8M)
Long Term Liabilities: CVNA's short term assets (957.5M) exceeds its long term liabilities (830.8M)
Debt to Equity History and Analysis
Debt Level: CVNA's debt to equity ratio (194.6%) is considered high
Reducing Debt: Insufficient data to determine if CVNA's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: CVNA has a high level of physical assets or inventory.
Debt Coverage by Assets: CVNA's debt is covered by short term assets (assets are 1.249490x debt).
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: CVNA has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: CVNA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -42.8% each year
Next Steps
Dividend
What is Carvana's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate CVNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CVNA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if CVNA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CVNA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CVNA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Carvana's salary, the management and board of directors tenure and is there insider trading?
4.9yrs
Average management tenure
CEO
Ernie Garcia (36yo)
7.8yrs
Tenure
US$2,075,726
Compensation
Mr. Ernest C. Garcia, III, also known as Ernie, has been Chief Executive Officer and President at Carvana Group, LLC since 2012 and serves as its Chairman. Mr. Garcia Founded Carvana Co. and has been its C ...
CEO Compensation Analysis
Compensation vs. Market: Insufficient data to establish whether Ernie's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Ernie's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
4.9yrs
Average Tenure
36yo
Average Age
Experienced Management: CVNA's management team is considered experienced (4.9 years average tenure).
Board Age and Tenure
2.4yrs
Average Tenure
60yo
Average Age
Experienced Board: CVNA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 48,750 |
| Max Price | US$68.05 |
| Entity | Company |
| Shares | 100,000 |
| Max Price | US$29.71 |
| Entity | Company |
| Shares | 630,000 |
| Max Price | US$34.52 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 1,000 |
| Max Price | US$43.85 |
| Entity | Company |
| Shares | 17,324 |
| Max Price | US$46.93 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 20,000 |
| Max Price | US$44.46 |
Ownership Breakdown
Management Team
Ryan Keeton (41yo)
Chief Brand Officer
- Tenure: 7.8yrs
- Compensation: US$1.73m
Ernie Garcia (36yo)
Founder
- Tenure: 7.8yrs
- Compensation: US$2.08m
Mike Levin
Vice President of Investor Relations
- Tenure: 0yrs
Dan Gill (36yo)
Chief Product Officer
- Tenure: 4.6yrs
- Compensation: US$1.73m
Mark Jenkins (40yo)
Chief Financial Officer
- Tenure: 5.3yrs
- Compensation: US$1.97m
Ben Huston (36yo)
Chief Operating Officer
- Tenure: 7.8yrs
- Compensation: US$1.97m
Paul Breaux (35yo)
VP, General Counsel & Secretary
- Tenure: 4.2yrs
John Mckeon
Vice President of Financial Planning & Analysis
- Tenure: 0.3yrs
Stephen Palmer (42yo)
Principal Accounting Officer
- Tenure: 0.3yrs
Board Members
Michael Maroone (65yo)
Director
- Tenure: 2.4yrs
- Compensation: US$90.00k
Dan Quayle (72yo)
Director
- Tenure: 2.4yrs
- Compensation: US$70.00k
Ernie Garcia (36yo)
Founder
- Tenure: 7.8yrs
- Compensation: US$2.08m
Ira Platt (55yo)
Director
- Tenure: 2.4yrs
- Compensation: US$100.00k
Greg Sullivan (60yo)
Director
- Tenure: 2.4yrs
- Compensation: US$95.00k
Neha Parikh
Director
- Tenure: 0.5yrs
Company Information
Carvana Co.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Carvana Co.
- Ticker: CVNA
- Exchange: NYSE
- Founded: 2012
- Industry: Automotive Retail
- Sector: Retail
- Implied Market Cap: US$12.146b
- Market Cap: US$3.676b
- Shares outstanding: 157.51m
- Website: https://www.carvana.com
Number of Employees
Location
- Carvana Co.
- 1930 West Rio Salado Parkway
- Tempe
- Arizona
- 85281
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CVNA | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Apr 2017 |
| CV0 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 2017 |
Biography
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/20 00:44 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.