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CVNA

CarvanaNYSE:CVNA Stock Report

Market Cap

US$57.2b

7D

-2.5%

1Y

58.4%

Updated

26 Sep, 2021

Data

Company Financials +
CVNA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

CVNA 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$321.99
52 Week HighUS$179.24
52 Week LowUS$376.83
Beta2.37
1 Month Change-4.60%
3 Month Change5.41%
1 Year Change58.41%
3 Year Change444.92%
5 Year Changen/a
Change since IPO2,800.81%

Recent News & Updates

Sep 13

Carvana: Excellent Growth Play

Carvana stock is expected to record a double-digit annual growth rate in the upcoming decade. Management is increasing the count of IRCs at a significant pace. The DCF model indicates a fair current valuation.

Sep 02
We Think Carvana (NYSE:CVNA) Has A Fair Chunk Of Debt

We Think Carvana (NYSE:CVNA) Has A Fair Chunk Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 19

Carvana: Don't Be The One Caught Holding This Hot Potato

Shares of Carvana have soared 50% year to date, defying the performance of the broader market. Admittedly, Carvana's growth has been stellar. Carvana saw triple y/y revenue growth in its most recent quarter, though admittedly versus a pandemic comp last year. Over the long term, the pandemic has proven to be a blessing for Carvana, which has eliminated many of its brick-and-mortar used car peers. Still, Carvana isn't substantially profitable, and the company's recent $750 million debt issuance highlights its cash-guzzling nature. Carvana is trading substantially richer than where peer Vroom, which is growing at a slower pace, is trading.

Shareholder Returns

CVNAUS Specialty RetailUS Market
7D-2.5%0.5%0.1%
1Y58.4%56.6%35.3%

Return vs Industry: CVNA exceeded the US Specialty Retail industry which returned 56.6% over the past year.

Return vs Market: CVNA exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is CVNA's price volatile compared to industry and market?
CVNA volatility
CVNA Beta2.37
Industry Beta1.56
Market Beta1

Stable Share Price: CVNA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CVNA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201210,400Ernie 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. Its 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. The company 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$57.19b
Earnings (TTM)-US$84.14m
Revenue (TTM)US$8.95b

6.4x

P/S Ratio

-679.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVNA income statement (TTM)
RevenueUS$8.95b
Cost of RevenueUS$7.55b
Gross ProfitUS$1.40b
ExpensesUS$1.48b
Earnings-US$84.14m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.47
Gross Margin15.61%
Net Profit Margin-0.94%
Debt/Equity Ratio326.9%

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?

141.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CVNA ($321.99) is trading above our estimate of fair value ($201.17)

Significantly Below Fair Value: CVNA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CVNA is unprofitable, so we can't compare its PE Ratio to the US 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 (141.9x) compared to the US Specialty Retail industry average (3x).


Future Growth

How is Carvana forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

74.2%

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 (2%).

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 (30% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CVNA's revenue (30% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Carvana performed over the past 5 years?

-17.5%

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 17.5% 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 (158.2%).


Return on Equity

High ROE: CVNA has a negative Return on Equity (-27.17%), as it is currently unprofitable.


Financial Health

How is Carvana's financial position?


Financial Position Analysis

Short Term Liabilities: CVNA's short term assets ($3.2B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: CVNA's short term assets ($3.2B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: CVNA's debt to equity ratio (326.9%) 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 40% each year


Dividend

What is Carvana 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 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.


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?

6.1yrs

Average management tenure


CEO

Ernie Garcia (38 yo)

9.67yrs

Tenure

US$2,594,444

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 ($USD2.59M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Ernie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CVNA's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: CVNA's board of directors are considered experienced (4.3 years average tenure).


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.


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$57.193b
  • Market Cap: US$27.209b
  • Shares outstanding: 177.62m
  • 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 Analysis2021/09/26 22:06
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.