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CARVANA CO (CVNA) Stock Fundamental Analysis

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

323.715  +4.06 (+1.27%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 120 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA shows excellent growth, but is valued quite expensive already. This makes CVNA very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year CVNA was profitable.
In the past year CVNA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple years.
In multiple years CVNA reported negative operating cash flow during the last 5 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

CVNA has a better Return On Assets (4.48%) than 65.83% of its industry peers.
CVNA has a better Return On Equity (26.46%) than 83.33% of its industry peers.
CVNA's Return On Invested Capital of 14.11% is amongst the best of the industry. CVNA outperforms 82.50% of its industry peers.
Industry RankSector Rank
ROA 4.48%
ROE 26.46%
ROIC 14.11%
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

Looking at the Profit Margin, with a value of 2.68%, CVNA is in the better half of the industry, outperforming 65.83% of the companies in the same industry.
The Operating Margin of CVNA (8.42%) is better than 80.00% of its industry peers.
The Gross Margin of CVNA (21.65%) is worse than 80.00% of its industry peers.
In the last couple of years the Gross Margin of CVNA has grown nicely.
Industry RankSector Rank
OM 8.42%
PM (TTM) 2.68%
GM 21.65%
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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CVNA is still creating some value.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
CVNA has more shares outstanding than it did 5 years ago.
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 8.03 indicates that CVNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.03, CVNA belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
The Debt to FCF ratio of CVNA is 5.94, which is a neutral value as it means it would take CVNA, 5.94 years of fcf income to pay off all of its debts.
CVNA has a Debt to FCF ratio of 5.94. This is comparable to the rest of the industry: CVNA outperforms 57.50% of its industry peers.
CVNA has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
CVNA's Debt to Equity ratio of 3.55 is on the low side compared to the rest of the industry. CVNA is outperformed by 77.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.55
Debt/FCF 5.94
Altman-Z 8.03
ROIC/WACC1.48
WACC9.53%
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 3.81. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.81, CVNA belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
CVNA has a Quick Ratio of 2.70. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Quick ratio of 2.70. This is amongst the best in the industry. CVNA outperforms 95.83% of its industry peers.
Industry RankSector Rank
Current Ratio 3.81
Quick Ratio 2.7
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 260.11%, which is quite impressive.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.23%.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.25% yearly.
EPS 1Y (TTM)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%

3.2 Future

Based on estimates for the next years, CVNA will show a very strong growth in Earnings Per Share. The EPS will grow by 41.53% on average per year.
The Revenue is expected to grow by 20.86% on average over the next years. This is a very strong growth
EPS Next Y194.05%
EPS Next 2Y94.58%
EPS Next 3Y64.43%
EPS Next 5Y41.53%
Revenue Next Year31.6%
Revenue Next 2Y26.22%
Revenue Next 3Y25.57%
Revenue Next 5Y20.86%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 113.58, which means the current valuation is very expensive for CVNA.
CVNA's Price/Earnings ratio is in line with the industry average.
CVNA is valuated expensively when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 54.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVNA indicates a slightly more expensive valuation: CVNA is more expensive than 60.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CVNA to the average of the S&P500 Index (22.13), we can say CVNA is valued expensively.
Industry RankSector Rank
PE 113.58
Fwd PE 54.46
CVNA Price Earnings VS Forward Price EarningsCVNA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 66.67% 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 73.05
EV/EBITDA 46.68
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVNA's earnings are expected to grow with 64.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y94.58%
EPS Next 3Y64.43%

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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 (5/30/2025, 11:33:10 AM)

323.715

+4.06 (+1.27%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners98.22%
Inst Owner Change-1.21%
Ins Owners1.79%
Ins Owner Change-0.1%
Market Cap69.32B
Analysts76.55
Price Target261.5 (-19.22%)
Short Float %6.04%
Short Ratio1.51
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)110.73%
Min EPS beat(2)90.71%
Max EPS beat(2)130.76%
EPS beat(4)4
Avg EPS beat(4)169.37%
Min EPS beat(4)90.71%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)111.76%
EPS beat(12)9
Avg EPS beat(12)81.47%
EPS beat(16)10
Avg EPS beat(16)62.17%
Revenue beat(2)2
Avg Revenue beat(2)4.59%
Min Revenue beat(2)4.24%
Max Revenue beat(2)4.94%
Revenue beat(4)4
Avg Revenue beat(4)4.01%
Min Revenue beat(4)3.05%
Max Revenue beat(4)4.94%
Revenue beat(8)6
Avg Revenue beat(8)4.07%
Revenue beat(12)6
Avg Revenue beat(12)0.45%
Revenue beat(16)10
Avg Revenue beat(16)3%
PT rev (1m)0.58%
PT rev (3m)4.21%
EPS NQ rev (1m)32.45%
EPS NQ rev (3m)49.58%
EPS NY rev (1m)52.59%
EPS NY rev (3m)98.05%
Revenue NQ rev (1m)7.84%
Revenue NQ rev (3m)12.97%
Revenue NY rev (1m)6.19%
Revenue NY rev (3m)11.52%
Valuation
Industry RankSector Rank
PE 113.58
Fwd PE 54.46
P/S 4.67
P/FCF 73.05
P/OCF 66.08
P/B 46.09
P/tB 47.25
EV/EBITDA 46.68
EPS(TTM)2.85
EY0.88%
EPS(NY)5.94
Fwd EY1.84%
FCF(TTM)4.43
FCFY1.37%
OCF(TTM)4.9
OCFY1.51%
SpS69.32
BVpS7.02
TBVpS6.85
PEG (NY)0.59
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.48%
ROE 26.46%
ROCE 16.6%
ROIC 14.11%
ROICexc 18.68%
ROICexgc 18.8%
OM 8.42%
PM (TTM) 2.68%
GM 21.65%
FCFM 6.39%
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 Turnover1.67
Health
Industry RankSector Rank
Debt/Equity 3.55
Debt/FCF 5.94
Debt/EBITDA 3.45
Cap/Depr 33.78%
Cap/Sales 0.67%
Interest Coverage 5.53
Cash Conversion 67.85%
Profit Quality 238.44%
Current Ratio 3.81
Quick Ratio 2.7
Altman-Z 8.03
F-Score7
WACC9.53%
ROIC/WACC1.48
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)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
EPS Next Y194.05%
EPS Next 2Y94.58%
EPS Next 3Y64.43%
EPS Next 5Y41.53%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%
Revenue Next Year31.6%
Revenue Next 2Y26.22%
Revenue Next 3Y25.57%
Revenue Next 5Y20.86%
EBIT growth 1Y551.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year112.74%
EBIT Next 3Y48%
EBIT Next 5Y31.57%
FCF growth 1Y184.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y231.62%
OCF growth 3YN/A
OCF growth 5YN/A