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CARVANA CO (CVNA) Stock Fundamental Analysis

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

243.94  -1.52 (-0.62%)

After market: 244.3 +0.36 (+0.15%)

Fundamental Rating

4

Taking everything into account, CVNA scores 4 out of 10 in our fundamental rating. CVNA was compared to 119 industry peers in the Specialty Retail industry. The financial health of CVNA is average, but there are quite some concerns on its profitability. CVNA is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year CVNA was profitable.
CVNA had a positive operating cash flow in the past year.
CVNA had negative earnings in 4 of the past 5 years.
CVNA had negative operating cash flow in 4 of the past 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 0 -1B -2B -3B

1.2 Ratios

The Return On Assets of CVNA (0.23%) is comparable to the rest of the industry.
With a Return On Equity value of 2.78%, CVNA perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
The Return On Invested Capital of CVNA (9.45%) is better than 73.28% of its industry peers.
Industry RankSector Rank
ROA 0.23%
ROE 2.78%
ROIC 9.45%
ROA(3y)-4.6%
ROA(5y)-5.01%
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 0 100 -100 200 300

1.3 Margins

Looking at the Profit Margin, with a value of 0.14%, CVNA is in line with its industry, outperforming 49.14% of the companies in the same industry.
CVNA's Operating Margin of 5.52% is fine compared to the rest of the industry. CVNA outperforms 69.83% of its industry peers.
Looking at the Gross Margin, with a value of 20.04%, CVNA is doing worse than 81.03% of the companies in the same industry.
In the last couple of years the Gross Margin of CVNA has grown nicely.
Industry RankSector Rank
OM 5.52%
PM (TTM) 0.14%
GM 20.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y9.7%
CVNA Yearly Profit, Operating, Gross MarginsCVNA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVNA is destroying value.
CVNA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVNA has more shares outstanding
The debt/assets ratio for CVNA has been reduced compared to a year ago.
CVNA Yearly Shares OutstandingCVNA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
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 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 6.68 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a better Altman-Z score (6.68) than 94.83% of its industry peers.
CVNA has a debt to FCF ratio of 10.70. This is a negative value and a sign of low solvency as CVNA would need 10.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.70, CVNA is in line with its industry, outperforming 51.72% of the companies in the same industry.
A Debt/Equity ratio of 9.01 is on the high side and indicates that CVNA has dependencies on debt financing.
CVNA's Debt to Equity ratio of 9.01 is on the low side compared to the rest of the industry. CVNA is outperformed by 81.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.01
Debt/FCF 10.7
Altman-Z 6.68
ROIC/WACC0.92
WACC10.31%
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 0 2B -2B 4B 6B

2.3 Liquidity

CVNA has a Current Ratio of 3.25. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Current ratio of 3.25. This is amongst the best in the industry. CVNA outperforms 93.10% of its industry peers.
A Quick Ratio of 2.12 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Quick ratio (2.12) than 93.10% of its industry peers.
Industry RankSector Rank
Current Ratio 3.25
Quick Ratio 2.12
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 1B 2B 3B 4B

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7

3. Growth

3.1 Past

CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.47%, which is quite impressive.
Looking at the last year, CVNA shows a quite strong growth in Revenue. The Revenue has grown by 12.21% in the last year.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.68% yearly.
EPS 1Y (TTM)100.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%239.13%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y24.46%
Revenue growth 5Y40.68%
Sales Q2Q%31.81%

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 33.44% on average per year.
CVNA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.99% yearly.
EPS Next Y138.22%
EPS Next 2Y63.99%
EPS Next 3Y48.21%
EPS Next 5Y33.44%
Revenue Next Year23.39%
Revenue Next 2Y20.3%
Revenue Next 3Y19.47%
Revenue Next 5Y17.99%

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 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10 -10

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24394.00 indicates a quite expensive valuation of CVNA.
60.34% of the companies in the same industry are cheaper than CVNA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.51, CVNA is valued quite expensively.
With a Price/Forward Earnings ratio of 100.56, CVNA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CVNA is valued a bit more expensive than 66.38% of the companies in the same industry.
CVNA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24394
Fwd PE 100.56
CVNA Price Earnings VS Forward Price EarningsCVNA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5K 10K 15K 20K

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 66.38% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVNA.
Industry RankSector Rank
P/FCF 94.85
EV/EBITDA 55.4
CVNA Per share dataCVNA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CVNA does not grow enough to justify the current Price/Earnings ratio.
CVNA's earnings are expected to grow with 48.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)176.48
PEG (5Y)N/A
EPS Next 2Y63.99%
EPS Next 3Y48.21%

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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 (1/30/2025, 8:16:45 PM)

After market: 244.3 +0.36 (+0.15%)

243.94

-1.52 (-0.62%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners94.57%
Inst Owner Change0.02%
Ins Owners5.08%
Ins Owner Change-4.46%
Market Cap50.65B
Analysts72.67
Price Target247.14 (1.31%)
Short Float %10.6%
Short Ratio3.81
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.03
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)232.86%
Min EPS beat(2)159.78%
Max EPS beat(2)305.93%
EPS beat(4)3
Avg EPS beat(4)146.46%
Min EPS beat(4)-10.39%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)103.13%
EPS beat(12)7
Avg EPS beat(12)54.25%
EPS beat(16)9
Avg EPS beat(16)45.86%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)3.05%
Max Revenue beat(2)3.81%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-5.97%
Max Revenue beat(4)12.25%
Revenue beat(8)4
Avg Revenue beat(8)1.38%
Revenue beat(12)6
Avg Revenue beat(12)0.13%
Revenue beat(16)10
Avg Revenue beat(16)3.97%
PT rev (1m)0.99%
PT rev (3m)56.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)125.02%
EPS NY rev (1m)0%
EPS NY rev (3m)204.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)18.21%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)2.56%
Valuation
Industry RankSector Rank
PE 24394
Fwd PE 100.56
P/S 4.04
P/FCF 94.85
P/OCF 81.82
P/B 82.9
P/tB 88.55
EV/EBITDA 55.4
EPS(TTM)0.01
EY0%
EPS(NY)2.43
Fwd EY0.99%
FCF(TTM)2.57
FCFY1.05%
OCF(TTM)2.98
OCFY1.22%
SpS60.44
BVpS2.94
TBVpS2.75
PEG (NY)176.48
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.23%
ROE 2.78%
ROCE 11.16%
ROIC 9.45%
ROICexc 10.97%
ROICexgc 11.05%
OM 5.52%
PM (TTM) 0.14%
GM 20.04%
FCFM 4.25%
ROA(3y)-4.6%
ROA(5y)-5.01%
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 3Y4.04%
GM growth 5Y9.7%
F-Score8
Asset Turnover1.7
Health
Industry RankSector Rank
Debt/Equity 9.01
Debt/FCF 10.7
Debt/EBITDA 5.47
Cap/Depr 27.16%
Cap/Sales 0.68%
Interest Coverage 5.97
Cash Conversion 61.53%
Profit Quality 3141.18%
Current Ratio 3.25
Quick Ratio 2.12
Altman-Z 6.68
F-Score8
WACC10.31%
ROIC/WACC0.92
Cap/Depr(3y)250.45%
Cap/Depr(5y)359.52%
Cap/Sales(3y)2.97%
Cap/Sales(5y)4.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%239.13%
EPS Next Y138.22%
EPS Next 2Y63.99%
EPS Next 3Y48.21%
EPS Next 5Y33.44%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y24.46%
Revenue growth 5Y40.68%
Sales Q2Q%31.81%
Revenue Next Year23.39%
Revenue Next 2Y20.3%
Revenue Next 3Y19.47%
Revenue Next 5Y17.99%
EBIT growth 1Y245.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2173.62%
EBIT Next 3Y230.47%
EBIT Next 5Y120.9%
FCF growth 1Y122.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y135.23%
OCF growth 3YN/A
OCF growth 5YN/A