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CARVANA CO (CVNA) Stock Fundamental Analysis

NYSE:CVNA - New York Stock Exchange, Inc. - US1468691027 - Common Stock - Currency: USD

257.1  +5.23 (+2.08%)

After market: 257 -0.1 (-0.04%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 121 industry peers in the Specialty Retail industry. CVNA has only an average score on both its financial health and profitability. CVNA is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CVNA was profitable.
CVNA had a positive operating cash flow in the past year.
In multiple years CVNA reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CVNA reported negative operating cash flow in multiple years.
CVNA Yearly Net Income VS EBIT VS OCF VS FCFCVNA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B -3B

1.2 Ratios

The Return On Assets of CVNA (2.48%) is comparable to the rest of the industry.
CVNA's Return On Equity of 16.67% is fine compared to the rest of the industry. CVNA outperforms 75.21% of its industry peers.
CVNA has a Return On Invested Capital of 11.76%. This is in the better half of the industry: CVNA outperforms 79.34% of its industry peers.
Industry RankSector Rank
ROA 2.48%
ROE 16.67%
ROIC 11.76%
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CVNA Yearly ROA, ROE, ROICCVNA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 300

1.3 Margins

With a Profit Margin value of 1.54%, CVNA perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
CVNA has a better Operating Margin (7.24%) than 75.21% of its industry peers.
CVNA has a Gross Margin of 21.03%. This is amonst the worse of the industry: CVNA underperforms 80.17% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.24%
PM (TTM) 1.54%
GM 21.03%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.8%
GM growth 5Y10.37%
CVNA Yearly Profit, Operating, Gross MarginsCVNA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

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6

2. Health

2.1 Basic Checks

CVNA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CVNA has more shares outstanding
Compared to 5 years ago, CVNA has more shares outstanding
CVNA has a better debt/assets ratio than last year.
CVNA Yearly Shares OutstandingCVNA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
CVNA Yearly Total Debt VS Total AssetsCVNA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 6.82 indicates that CVNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.82, CVNA belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
CVNA has a debt to FCF ratio of 6.81. This is a slightly negative value and a sign of low solvency as CVNA would need 6.81 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.81, CVNA perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
A Debt/Equity ratio of 4.22 is on the high side and indicates that CVNA has dependencies on debt financing.
With a Debt to Equity ratio value of 4.22, CVNA is not doing good in the industry: 76.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 4.22
Debt/FCF 6.81
Altman-Z 6.82
ROIC/WACC1.32
WACC8.91%
CVNA Yearly LT Debt VS Equity VS FCFCVNA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B

2.3 Liquidity

CVNA has a Current Ratio of 3.64. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA's Current ratio of 3.64 is amongst the best of the industry. CVNA outperforms 94.21% of its industry peers.
A Quick Ratio of 2.44 indicates that CVNA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.44, CVNA belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.64
Quick Ratio 2.44
CVNA Yearly Current Assets VS Current LiabilitesCVNA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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8

3. Growth

3.1 Past

CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.60%, which is quite impressive.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.94%.
The Revenue has been growing by 28.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)144.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%156%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%46.33%

3.2 Future

CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.53% yearly.
CVNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.86% yearly.
EPS Next Y92.71%
EPS Next 2Y70.72%
EPS Next 3Y55.32%
EPS Next 5Y41.53%
Revenue Next Year23.94%
Revenue Next 2Y20.96%
Revenue Next 3Y20.16%
Revenue Next 5Y20.86%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
CVNA Yearly Revenue VS EstimatesCVNA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
CVNA Yearly EPS VS EstimatesCVNA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 10 -10

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2

4. Valuation

4.1 Price/Earnings Ratio

CVNA is valuated quite expensively with a Price/Earnings ratio of 163.76.
CVNA's Price/Earnings is on the same level as the industry average.
CVNA is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 84.98, the valuation of CVNA can be described as expensive.
61.98% of the companies in the same industry are cheaper than CVNA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVNA to the average of the S&P500 Index (20.86), we can say CVNA is valued expensively.
Industry RankSector Rank
PE 163.76
Fwd PE 84.98
CVNA Price Earnings VS Forward Price EarningsCVNA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 65.29% of the companies in the same industry.
CVNA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 66.36
EV/EBITDA 45.35
CVNA Per share dataCVNA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

CVNA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CVNA's earnings are expected to grow with 55.32% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y70.72%
EPS Next 3Y55.32%

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0

5. Dividend

5.1 Amount

CVNA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CARVANA CO

NYSE:CVNA (5/2/2025, 8:04:00 PM)

After market: 257 -0.1 (-0.04%)

257.1

+5.23 (+2.08%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-19 2025-02-19/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners98.22%
Inst Owner Change0.33%
Ins Owners1.79%
Ins Owner Change-0.04%
Market Cap54.88B
Analysts76.55
Price Target258.82 (0.67%)
Short Float %5.29%
Short Ratio1.26
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)115.82%
Min EPS beat(2)81.55%
Max EPS beat(2)150.09%
EPS beat(4)4
Avg EPS beat(4)167.03%
Min EPS beat(4)81.55%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)97.5%
EPS beat(12)8
Avg EPS beat(12)62.02%
EPS beat(16)10
Avg EPS beat(16)55.47%
Revenue beat(2)2
Avg Revenue beat(2)4.37%
Min Revenue beat(2)3.81%
Max Revenue beat(2)4.94%
Revenue beat(4)4
Avg Revenue beat(4)6.01%
Min Revenue beat(4)3.05%
Max Revenue beat(4)12.25%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)3.55%
PT rev (1m)-0.69%
PT rev (3m)3.77%
EPS NQ rev (1m)17%
EPS NQ rev (3m)14.22%
EPS NY rev (1m)6.55%
EPS NY rev (3m)29.49%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)8.03%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)5.77%
Valuation
Industry RankSector Rank
PE 163.76
Fwd PE 84.98
P/S 4.01
P/FCF 66.36
P/OCF 59.78
P/B 43.56
P/tB 44.76
EV/EBITDA 45.35
EPS(TTM)1.57
EY0.61%
EPS(NY)3.03
Fwd EY1.18%
FCF(TTM)3.87
FCFY1.51%
OCF(TTM)4.3
OCFY1.67%
SpS64.05
BVpS5.9
TBVpS5.74
PEG (NY)1.77
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.48%
ROE 16.67%
ROCE 13.85%
ROIC 11.76%
ROICexc 15.44%
ROICexgc 15.53%
OM 7.24%
PM (TTM) 1.54%
GM 21.03%
FCFM 6.05%
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.8%
GM growth 5Y10.37%
F-Score7
Asset Turnover1.61
Health
Industry RankSector Rank
Debt/Equity 4.22
Debt/FCF 6.81
Debt/EBITDA 4.11
Cap/Depr 29.84%
Cap/Sales 0.67%
Interest Coverage 8.61
Cash Conversion 70.89%
Profit Quality 393.81%
Current Ratio 3.64
Quick Ratio 2.44
Altman-Z 6.82
F-Score7
WACC8.91%
ROIC/WACC1.32
Cap/Depr(3y)83.57%
Cap/Depr(5y)253.76%
Cap/Sales(3y)1.75%
Cap/Sales(5y)3.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%156%
EPS Next Y92.71%
EPS Next 2Y70.72%
EPS Next 3Y55.32%
EPS Next 5Y41.53%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%46.33%
Revenue Next Year23.94%
Revenue Next 2Y20.96%
Revenue Next 3Y20.16%
Revenue Next 5Y20.86%
EBIT growth 1Y1494.37%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year94.08%
EBIT Next 3Y42.85%
EBIT Next 5Y31.57%
FCF growth 1Y15.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.32%
OCF growth 3YN/A
OCF growth 5YN/A