ACV Auctions (ACVA) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 32.89%
• EPS Growth: 7.44%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Dealerships
• EPS (TTM): 0.04
• Shares Outstanding: 171,064,790
• 10 Day Avg. Volume: 1,307,761
• 30 Day Avg. Volume: 1,513,497
• PEG Ratio: -4.46
• Price to Book (P/B): 6.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.17
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: -17.01
• 1Y Price Target: $21.85
• Price Target Upside: 42.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $17.00 ▲(10.97%Upside)

ACV Auctions shows strong revenue growth and positive developments in cash flow and balance sheet stability, which are crucial for future success. However, ongoing profitability challenges and a weak valuation due to negative earnings are significant concerns. The positive sentiment from the earnings call and credit facility expansion are supportive factors, but the overall stock score reflects the need for improved operational efficiency and profitability.

Positive Factors

Market Share

ACV had another strong quarter of market share gains, which is expected to continue throughout 2025.

Operational Efficiency

EBITDA at $13.9mn beat Street at $10.4mn, showing strong operational efficiency.

Revenue Growth

ACV is expected to sustain 20% revenue growth for over three years, indicating strong business performance.

Negative Factors

Macro Risks

Potential macro shocks and competition from incumbent providers pose risks to ACV's performance.

Market Conditions

Revenue of $183 million increased 25% YOY and was at the midpoint of guidance despite exceptionally soft market conditions in February.

ACV Auctions Business Overview & Revenue Model

Company Description

ACV Auctions (ACVA) is a leading digital automotive marketplace that provides a platform for dealers to buy and sell used vehicles through online auctions. The company operates in the automotive and technology sectors, delivering a comprehensive suite of digital services that streamline the vehicle acquisition and disposition process for car dealerships. ACV Auctions leverages its technology to offer transparency, efficiency, and convenience in the wholesale automotive market.

How the Company Makes Money

ACV Auctions makes money primarily through transaction fees collected from the vehicles sold on its platform. The company charges sellers a fee based on the final sale price of each vehicle transacted through its online auctions. Additionally, ACV Auctions generates revenue through various ancillary services, such as vehicle transportation and financing solutions, which are offered to further facilitate the buying and selling process for dealers. Key partnerships with auto dealerships and financial institutions also play a significant role in enhancing the company's service offerings and expanding its market reach.

ACV Auctions Financial Statement Overview

Summary

ACV Auctions demonstrates strong revenue growth and a stable balance sheet with low leverage. However, challenges remain in achieving profitability, as reflected in negative income margins. Cash flow improvements are encouraging, but further efforts are needed to enhance operational efficiency and profitability.

Income Statement

ACV Auctions shows a strong revenue growth trajectory with a significant increase from $208M in 2020 to $674M in TTM 2025. However, profitability remains a challenge, as indicated by negative net and EBIT margins, despite some improvement in EBITDA margin over time. The company needs to focus on cost management to improve profitability.

Balance Sheet

The balance sheet is relatively strong with a solid equity base, evidenced by a consistent equity ratio above industry levels. The debt-to-equity ratio is manageable, indicating low leverage. However, there is a need to enhance profitability to improve return on equity, which remains negative due to ongoing net losses.

Cash Flow

Cash flow from operations has improved significantly, turning positive in recent periods, which is a positive sign for liquidity. Free cash flow has also shown a positive trend, though it remains low relative to the company's revenue scale. There is room to enhance cash flow generation to support growth and reduce reliance on external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	637.16M	481.23M	421.53M	358.44M	208.36M
Gross Profit	388.95M	236.78M	184.88M	153.68M	95.31M
EBITDA	-46.57M	-53.88M	-89.75M	-67.92M	-32.65M
Net Income	-79.70M	-75.26M	-102.19M	-78.18M	-41.02M
Balance Sheet
Total Assets	984.15M	922.92M	914.92M	982.96M	404.55M
Cash, Cash Equivalents and Short-Term Investments	270.10M	411.33M	496.68M	579.76M	233.72M
Total Debt	123.00M	115.00M	76.67M	3.85M	6.90M
Total Liabilities	544.14M	466.40M	429.20M	426.86M	544.24M
Stockholders Equity	440.00M	456.53M	485.72M	556.10M	-139.69M
Cash Flow
Free Cash Flow	60.86M	-46.05M	-97.66M	71.26M	1.48M
Operating Cash Flow	65.40M	-17.89M	-74.26M	85.29M	10.37M
Investing Cash Flow	-15.86M	-110.97M	-283.89M	-129.27M	-19.67M
Financing Cash Flow	-7.87M	30.63M	72.93M	376.25M	60.76M

ACV Auctions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACVA, the sentiment is Negative. The current price of 15.32 is below the 20-day moving average (MA) of 16.04, below the 50-day MA of 16.28, and below the 200-day MA of 18.00, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 8.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACVA.

ACV Auctions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	78 Outperform	$775.39M	19.31	9.35%	―	2.24%	-57.33%
ABG	78 Outperform	$4.88B	11.81	11.92%	―	11.11%	-23.41%
CANG	64 Neutral	$524.10M	6.63	0.12%	―	40.31%	-204.86%
ACVA	64 Neutral	$2.62B	―	-16.49%	―	32.89%	7.44%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
KAR	61 Neutral	$2.67B	42.72	5.46%	―	9.42%	―
UXIN	45 Neutral	$973.12M	―	260.24%	―	―	―

ACV Auctions Corporate Events

ACV Auctions Expands Credit Facility to $250 Million

On June 26, 2025, ACV Auctions Inc. amended its Revolving Credit Agreement, increasing its revolving credit facility from $160 million to $250 million and extending the maturity date to June 26, 2030. This amendment introduces a new maximum Total Net Leverage Ratio covenant effective by June 30, 2027, and offers more favorable loan pricing post-Covenant Conversion Date, impacting the company’s financial strategy and potentially enhancing its market position.

The most recent analyst rating on (ACVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on ACV Auctions stock, see the ACVA Stock Forecast page.

ACV Auctions Holds Annual Stockholders Meeting on Key Proposals

On May 28, 2025, ACV Auctions Inc. held its Annual Meeting of Stockholders, where five key proposals were voted on. These included the election of directors, approval of officer exculpation, share reclassification, executive compensation, and the ratification of Ernst and Young LLP as the independent registered public accounting firm for 2025. The outcomes of these votes are expected to impact the company’s governance structure and financial operations, with changes such as the reclassification of stock potentially affecting shareholder value.

The most recent analyst rating on (ACVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on ACV Auctions stock, see the ACVA Stock Forecast page.