Carvana
Market Cap
US$14.8b
Last Updated
2020/02/20 02:49 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 Analysis
High growth potential with imperfect balance sheet.
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
Stable Share Price: CVNA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
22.2%
CVNA
0.7%
US Specialty Retail
0.5%
US Market
1 Year Return
207.1%
CVNA
18.0%
US Specialty Retail
20.3%
US Market
Return vs Industry: CVNA exceeded the US Specialty Retail industry which returned 18% over the past year.
Return vs Market: CVNA exceeded the US Market which returned 20.3% over the past year.
Shareholder returns
| CVNA | Industry | Market | |
|---|---|---|---|
| 7 Day | 22.2% | 0.7% | 0.5% |
| 30 Day | 27.8% | 1.3% | 2.0% |
| 90 Day | 18.9% | 5.6% | 9.4% |
| 1 Year | 207.1%207.1% | 19.8%18.0% | 22.8%20.3% |
| 3 Year | n/a | 46.7%39.7% | 50.1%40.4% |
| 5 Year | n/a | 50.8%38.5% | 73.1%54.1% |
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
Would Carvana (NYSE:CVNA) Be Better Off With Less Debt?1 month ago | Simply Wall St
Carvana (NYSE:CVNA) Shareholders Have Enjoyed An Impressive 201% Share Price Gain2 months ago | Simply Wall St
Is There An Opportunity With Carvana Co.'s (NYSE:CVNA) 42% Undervaluation?Valuation
Is Carvana undervalued compared to its fair value and its price relative to the market?
15.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CVNA ($106.78) is trading below our estimate of fair value ($126.86)
Significantly Below Fair Value: CVNA is trading below fair value, but not by a significant amount.
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
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 (50.9x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Carvana forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
62.2%
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 (1.7%).
Earnings vs Market: CVNA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CVNA's is expected to become profitable in the next 3 years.
Revenue vs Market: CVNA's revenue (28.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CVNA's revenue (28.1% 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
Next Steps
Past Performance
How has Carvana performed over the past 5 years?
-21.8%
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 -21.8% 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 (6.4%).
Return on Equity
High ROE: CVNA has a negative Return on Equity (-104.54%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Carvana's financial position?
Financial Position Analysis
Short Term Liabilities: CVNA's short term assets ($1.1B) exceed its short term liabilities ($507.5M).
Long Term Liabilities: CVNA's short term assets ($1.1B) exceed its long term liabilities ($865.7M).
Debt to Equity History and Analysis
Debt Level: CVNA's debt to equity ratio (333.1%) 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 1.1x 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 -41.4% each year
Next Steps
Dividend
What is Carvana's current dividend yield, its reliability and sustainability?
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 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.
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.
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
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Ernie Garcia (36yo)
8.1yrs
Tenure
US$2,075,726
Compensation
Mr. Ernest C. Garcia, III, also known as Ernie, has been Chief Executive Officer and President at Carvana Group, LLC since 2012 and serves as its Chairman. Mr. Garcia Founded Carvana Co. and has been its C ...
CEO Compensation Analysis
Compensation vs Market: Ernie's total compensation ($USD2.08M) is below average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Ernie's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 8.1yrs | US$2.08m | 0.21% $30.8m | |
| Chief Financial Officer | 5.6yrs | US$1.97m | 0.0086% $1.3m | |
| Chief Operating Officer | 8.1yrs | US$1.97m | 0.0086% $1.3m | |
| Chief Brand Officer | 8.1yrs | US$1.73m | 0.020% $2.9m | |
| Chief Product Officer | 4.9yrs | US$1.73m | 0.0077% $1.1m | |
| Principal Accounting Officer | 0.6yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| VP, General Counsel & Secretary | 4.5yrs | no data | 0.0075% $1.1m | |
| Vice President of Financial Planning & Analysis | 0.6yrs | no data | 0.00058% $85.9k |
5.3yrs
Average Tenure
36yo
Average Age
Experienced Management: CVNA's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 8.1yrs | US$2.08m | 0.21% $30.8m | |
| Independent Director | 2.8yrs | US$90.00k | 0.10% $15.0m | |
| Independent Director | 2.8yrs | US$70.00k | no data | |
| Independent Director | 2.8yrs | US$100.00k | 0.051% $7.5m | |
| Independent Director | 2.8yrs | US$95.00k | no data | |
| Director | 0.8yrs | no data | 0.0040% $589.7k |
2.8yrs
Average Tenure
60yo
Average Age
Experienced Board: CVNA's board of directors are not considered experienced ( 2.8 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 been substantially diluted in the past year, with total shares outstanding growing by 82.6%.
Top Shareholders
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$14.815b
- Market Cap: US$5.372b
- Shares outstanding: 157.09m
- 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 it using company’s proprietary 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. The company was founded in 2012 and is headquartered in Tempe, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 02:49 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/09/30 |
| 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.