Carvana Co (CVNA) AI Stock Analysis

• Market Cap: $72.88B
• Dividend Yield: N/A
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): 111.7
• Beta (1Y): 3.14
• Revenue Growth: 32.23%
• EPS Growth: -46.86%
• Country: US
• Employees: 17,400
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 1.67
• Shares Outstanding: 135,023,440
• 10 Day Avg. Volume: 3,477,554
• 30 Day Avg. Volume: 3,850,933
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.26
• Enterprise Value/Market Cap: 0.08
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 1.07
• 1Y Price Target: $323.93
• Price Target Upside: 9.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 71 Outperform
• Price Target: $328.00 ▲(10.43%Upside)

Carvana's overall score is bolstered by strong earnings call results, showcasing record-breaking sales and profitability. Financial performance is positive, although high leverage remains a concern. Technical analysis and valuation indicate potential risks, with overvaluation and neutral momentum as key factors.

Positive Factors

Earnings

Carvana's investments in infrastructure and the ADESA auction business are proving to be long-term competitive advantages, potentially leading to positive earnings revisions.

Growth Prospects

Analyst raises the price objective to $375, reiterating a Buy recommendation, implying confidence in Carvana's growth prospects.

Market Position

Carvana is the fastest growing and most profitable used car retailer with the second-highest market share in the massive and fragmented used car market.

Negative Factors

Consumer Affordability

Growth assumptions in the near-term remain less optimistic than CVNA's targets due to potential headwinds from worsening consumer affordability because of tariffs.

Margins

Recent prime deal disclosures suggest a slightly larger than expected GoS margin compression.

Recession Risks

CVNA is not immune to recession risks, but ongoing loss performance across CVNA and the industry is already factored into current margins.

Carvana Co Business Overview & Revenue Model

Company Description

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's 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. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Carvana Co generates revenue primarily through the sale of used vehicles. The company purchases vehicles from auctions, trade-ins, and directly from consumers, which are then reconditioned and listed for sale on its platform. Carvana makes money by marking up the price of these vehicles above their acquisition and reconditioning costs. In addition to vehicle sales, Carvana offers financing services, earning interest income from customer loans. The company also generates revenue through ancillary products, such as extended warranties and vehicle service contracts. Strategic partnerships with financial institutions and data analytics companies help Carvana optimize its operations and enhance its service offerings, further contributing to its revenue streams.

Carvana Co Financial Statement Overview

Summary

Carvana demonstrates strong revenue and profit growth, improved margins, and efficient cash flow management. However, high leverage on the balance sheet remains a concern, requiring careful monitoring. Overall, the financials suggest a positive outlook with opportunities for further profitability enhancements.

Income Statement

Carvana's income statement shows notable improvement with a significant increase in gross profit margin and EBIT margin in the TTM period. Revenue growth has been strong, indicating a positive trajectory. However, the net profit margin remains modest, suggesting room for enhanced profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses risks. On the positive side, the company has improved its equity ratio, signifying better financial stability compared to previous periods. Return on equity has also improved, reflecting enhanced profitability.

Cash Flow

Cash flow statements highlight robust free cash flow growth and a strong operating cash flow to net income ratio, showcasing efficient cash management. The free cash flow to net income ratio is also favorable, supporting financial flexibility and operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.84B	13.67B	10.77B	13.60B	12.81B	5.59B
	Gross Profit
3.17B	2.88B	1.72B	1.25B	1.93B	793.76M
	EBIT
1.25B	990.00M	-72.00M	-1.56B	-110.00M	-330.95M
	EBITDA
1.45B	1.36B	1.16B	-2.15B	-5.00M	-257.16M
	Net Income Common Stockholders
398.00M	210.00M	450.00M	-2.89B	-287.00M	-462.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.33B	2.18B	896.00M	434.00M	403.00M	300.81M
	Total Assets
8.88B	8.48B	7.07B	8.70B	7.01B	3.03B
	Total Debt
6.04B	6.05B	6.71B	8.82B	5.77B	1.87B
	Net Debt
4.18B	4.33B	6.18B	8.38B	5.37B	1.57B
	Total Liabilities
7.11B	7.11B	7.46B	9.75B	6.49B	2.23B
	Stockholders Equity
1.50B	1.26B	243.00M	-518.00M	306.00M	387.60M
Cash Flow		Free Cash Flow
949.00M	827.00M	716.00M	-1.84B	-3.15B	-968.41M
	Operating Cash Flow
1.05B	918.00M	803.00M	-1.32B	-2.59B	-608.41M
	Investing Cash Flow
-55.00M	-13.00M	31.00M	-2.58B	-627.00M	-345.93M
	Financing Cash Flow
583.00M	261.00M	-868.00M	3.90B	3.53B	1.16B

Carvana Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 297.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVNA, the sentiment is Neutral. The current price of 297.03 is below the 20-day moving average (MA) of 321.13, above the 50-day MA of 268.54, and above the 200-day MA of 226.12, indicating a neutral trend. The MACD of 15.16 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVNA.

Carvana Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVNA	71 Outperform	$72.88B	111.67	44.39%	―	32.23%	-46.86%
AZO	71 Outperform	$61.62B	24.65	-14.95%	―	5.15%	1.99%
GPC	69 Neutral	$17.11B	20.25	19.19%	3.37%	1.99%	-32.18%
ORLY	68 Neutral	$76.94B	33.47	-174.09%	―	4.90%	3.28%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
AAP	52 Neutral	$3.09B	59.62	-23.77%	1.97%	-16.55%	-941.57%
PRTS	48 Neutral	$49.81M	―	-54.32%	―	-14.49%	-210.54%

Carvana Co Corporate Events

Carvana Co Holds Annual Stockholders Meeting, Elects Directors

On May 5, 2025, Carvana Co. held its annual meeting of stockholders where several key proposals were voted on. The election of directors resulted in Dan Quayle and Gregory Sullivan being elected as Class II directors for a three-year term. Stockholders approved the compensation of the company’s named executive officers and decided to hold annual ‘say-on-pay’ votes. An amendment to the company’s certificate of incorporation for officer exculpation was approved, and Grant Thornton LLP was ratified as the independent auditor for 2025. However, a stockholder proposal for simple majority voting was not approved.