Carvana (CVNA)
Consumer Discretionary · $73.4B market cap · SEC CIK 0001690820
fundamentals score out of 100
Next reports on Oct 27, 2026, with analysts expecting $0.46 in earnings per share.
The case for CVNA
- Revenue up 54.0% on the year.
- Earns 47% back on shareholder equity.
- Earnings per share up 40.6%.
- Has compounded revenue at 29.5% a year over five years.
- Current assets cover the near-term bills 3.9 times over.
The case against
- Pricey at 46.8× earnings, against a long-run market average nearer 20×.
- Swings harder than the market (beta 3.66).
- Profitability is weak (42/100): return on equity 47%, net margin 6.3%, gross margin 19%, 63% of profit turned to cash.
- The price trend is weak (35/100): -14.3% over a year, +0.9% over three months, 25% of the way up its 52-week range.
- Free cash flow is only 1.2% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 21 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 94 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 35 |
| Stabilityhow violently it moves, what it owes and what it pays you | 19 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 46.8× |
|---|---|
| Price / book | 17.92× |
| Price / sales | 2.9× |
| Revenue growth (YoY) | +54.0% |
| EPS growth (YoY) | +40.6% |
| Gross margin | 19% |
| Operating margin | 9% |
| Net margin | 6% |
| Return on equity | 47% |
| Debt / equity | 1.30× |
| Current ratio | 3.93 |
| Dividend yield | none |
| Beta | 3.66 |
| 52-week range | $54.46 – $97.38 |
| Position in that range | 25% of the way up |
| 3-month return | +0.9% |
| 1-year return | -14.3% |
Five years of financials, as filed
Pulled from Carvana's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $20.3B | $13.7B | $10.8B | $13.6B | $12.8B |
| Gross profit | $4.2B | $2.9B | $1.7B | $1.2B | $1.9B |
| Operating income | $1.9B | $990M | -$80.0M | -$2.4B | — |
| Net income | $1.4B | $210M | $450M | -$1.6B | -$135M |
| Operating cash flow | $1.0B | $918M | $803M | -$1.3B | -$2.6B |
| Capital expenditure | $147M | $91.0M | $87.0M | $512M | $557M |
| Total assets | $13.2B | $8.5B | $7.1B | $8.7B | $7.0B |
| Total liabilities | $9.0B | $7.1B | $7.5B | $9.8B | $6.5B |
| Shareholder equity | $3.4B | $1.3B | $243M | -$518M | $306M |
| Cash | $2.3B | $1.7B | $530M | $434M | $403M |
| Long-term debt | $4.8B | $5.3B | $5.4B | $6.6B | $3.2B |
| Free cash flow | $889M | $827M | $716M | -$1.8B | -$3.2B |
| Gross margin | 20.6% | 21.0% | 16.0% | 9.2% | 15.1% |
| Operating margin | 9.3% | 7.2% | -0.7% | -17.3% | — |
| Net margin | 6.9% | 1.5% | 4.2% | -11.7% | -1.1% |
| Diluted shares | 224M | 132M | 134M | 134M | 110M |
Share count is up 103.1% over 4 years. Your slice has been diluted. Counts are restated for stock splits so the years compare.
What Carvana says it does
Carvana Co. is a holding company that was formed as a Delaware corporation in 2016 in order to operate the business of Carvana Group, LLC and its subsidiaries (collectively, "Carvana Group"). Carvana Co. Class A common stock trades on the New York Stock Exchange ("NYSE") under the symbol "CVNA." Our Company Carvana is the leading e-commerce platform for buying and selling used cars. We are transforming the used car buying and selling experience by giving consumers what they want - a wide selection, great value and quality, transparent pricing, and a simple, no pressure transaction. Our differentiated business model combines a comprehensive online sales experience with a vertically integrated supply chain, designed to sell high-quality vehicles to our customers transparently and efficiently at a low price. The automotive retail industry is large – with approximately 37 million used auto retail transactions in the United States ("U.S.")…
Risk factors CVNA lists in its 10-K
- Risks Related to Our Automotive Finance Receivables
- Risks Related to Our Organizational Structure
- Risks Related to Our Indebtedness and Liquidity
- Risks Related to Ownership of our Class A Common Stock
- Our business is subject to risks related to the larger automotive ecosystem, including consumer demand, global supply chain challenges, and other macroeconomic issues
- Our rapid growth may not be indicative of our future growth and, if we continue growing rapidly, we may not be able to manage our growth and profitability effectively
- Our failure to maintain our reputation and to otherwise maintain and enhance our customer service quality and brand could adversely affect our business, sales, and results of operations
- We experience seasonal and other fluctuations in our quarterly and annual operating results, which may not fully reflect the underlying performance of our business
- We maintain a business relationship with DriveTime Automotive Inc. and other entities affiliated with our controlling stockholders for certain services and processes
- We participate in a highly competitive industry; pressure from existing and new companies may adversely affect our business and operating results
- Our business is sensitive to changes in the prices of new and used vehicles
- Dealer and Finance Licensing Regulations
- Telephone Consumer Protection Act ("TCPA")
- Environmental, Transportation, and Logistics Related Laws and Regulations