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CVNA

Carvana NYSE:CVNA Stock Report

Last Price

US$30.96

Market Cap

US$5.5b

7D

-11.7%

1Y

-88.1%

Updated

25 May, 2022

Data

Company Financials +
CVNA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

CVNA Stock Overview

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States.

Carvana Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Carvana
Historical stock prices
Current Share PriceUS$30.96
52 Week HighUS$376.83
52 Week LowUS$25.69
Beta2.55
1 Month Change-61.88%
3 Month Change-75.44%
1 Year Change-88.05%
3 Year Change-46.58%
5 Year Change208.06%
Change since IPO178.92%

Recent News & Updates

May 23

Is Carvana Stock A Good Long-Term Investment? Down 90% But Still Risky

Carvana is down 90% since all-time highs of the past year. On the surface, this looks like a secular growth story trading at deeply discounted valuations. While the stock will provide phenomenal upside in the bull case, there are numerous reasons to doubt the long-term outlook. In particular, one should not ignore the highly leveraged balance sheet which strains an already negative cash flow position. The stock is down 90%, but valuation is not the problem here.

May 12

Steel City Capital - Carvana: Up Against The Clock From A Liquidity Perspective

On the short side, Steel City Capital's largest contributor by far has been Carvana. CVNA was nearly breakeven from an EBITDA perspective last year. All companies hit "bumps in the road" during their lifecycles, but such issues are more acute in CVNA's case because of their heavy reliance on external funding. The key drivers of CVNA's business are rolling over, it's unclear they'll rebound any time soon, and the company is up against the clock from a liquidity perspective.

May 05

Carvana Stock: A Dreadful Risk-Return Profile

Carvana stock is in danger of another drawdown despite the company's progress during the past year. The firm's capital restructure remains a concern. Quantitative metrics suggest the stock's risk profile isn't up to par. The economic circumstances that carried the stock in the past have shifted. Carvana's income and cash flow statements aren't one and the same.

Shareholder Returns

CVNAUS Specialty RetailUS Market
7D-11.7%-0.6%1.0%
1Y-88.1%-27.4%-15.1%

Return vs Industry: CVNA underperformed the US Specialty Retail industry which returned -29.4% over the past year.

Return vs Market: CVNA underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is CVNA's price volatile compared to industry and market?
CVNA volatility
CVNA Average Weekly Movement18.6%
Specialty Retail Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: CVNA is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: CVNA's weekly volatility has increased from 12% to 19% over the past year.

About the Company

FoundedEmployeesCEOWebsite
201221,000Ernie Garciahttps://www.carvana.com

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company’s platform allows customers to research and identify a vehicle; inspect it using company’s 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona.

Carvana Fundamentals Summary

How do Carvana's earnings and revenue compare to its market cap?
CVNA fundamental statistics
Market CapUS$5.55b
Earnings (TTM)-US$359.00m
Revenue (TTM)US$14.07b

0.2x

P/S Ratio

-9.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVNA income statement (TTM)
RevenueUS$14.07b
Cost of RevenueUS$12.17b
Gross ProfitUS$1.90b
Other ExpensesUS$2.26b
Earnings-US$359.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-3.39
Gross Margin13.50%
Net Profit Margin-2.55%
Debt/Equity Ratio11,400.0%

How did CVNA perform over the long term?

See historical performance and comparison

Valuation

Is Carvana 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: CVNA ($30.96) is trading below our estimate of fair value ($227.93)

Significantly Below Fair Value: 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 Price-To-Earnings Ratio to the US Specialty Retail industry average.

PE vs Market: CVNA is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.


Price to Earnings Growth Ratio

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 Price-To-Book Ratio (40.9x) compared to the US Specialty Retail industry average (1.7x).


Future Growth

How is Carvana forecast to perform in the next 1 to 3 years based on estimates from 25 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


76.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CVNA's revenue (23% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: CVNA's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CVNA's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Carvana 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


-21.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CVNA is currently unprofitable.

Growing Profit Margin: CVNA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVNA is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% 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 (70.8%).


Return on Equity

High ROE: CVNA has a negative Return on Equity (-1367.31%), as it is currently unprofitable.


Financial Health

How is Carvana's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CVNA's short term assets ($5.1B) exceed its short term liabilities ($3.7B).

Long Term Liabilities: CVNA's short term assets ($5.1B) exceed its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: CVNA's net debt to equity ratio (10125%) is considered high.

Reducing Debt: CVNA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: 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 45.7% each year


Dividend

What is Carvana 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 CVNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CVNA'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 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.


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 CVNA has not reported any payouts.


Discover strong dividend paying companies

Management

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

7.2yrs

Average management tenure


CEO

Ernie Garcia (38 yo)

10.33yrs

Tenure

US$5,050,345

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. in 2012 and has be...


CEO Compensation Analysis

Compensation vs Market: Ernie's total compensation ($USD5.05M) is below average for companies of similar size in the US market ($USD8.23M).

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


Leadership Team

Experienced Management: CVNA's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: CVNA's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CVNA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.1%.


Top Shareholders

Company Information

Carvana Co.'s 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$5.550b
  • Market Cap: US$3.274b
  • Shares outstanding: 191.15m
  • Website: https://www.carvana.com

Number of Employees


Location

  • Carvana Co.
  • 1930 West Rio Salado Parkway
  • Tempe
  • Arizona
  • 85281
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.