Carvana (CVNA)

Consumer Discretionary · $79.6B market cap · SEC CIK 0001690820

Next reports on Feb 16, 2027, after the close, with analysts expecting $0.41 in earnings per share.

52-week range $54.46 to $97.38. 25% below its 52-week high and 34% above its low.

The case for CVNA

• Revenue up 50.3% on the year.
• Earns 44% back on shareholder equity.
• Has compounded revenue at 29.5% a year over five years.
• Current assets cover the near-term bills 4.1 times over.

The case against

• Swings harder than the market (beta 3.74).
• Free cash flow is only 1.1% of its market value, a thin cash return for the price.
• Profitability is weak (40/100): return on equity 44%, net margin 6.2%, gross margin 19%, 63% of profit turned to cash.
• P/E of 46.7× is higher than 89% of Consumer Discretionary companies.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Carvana's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• 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
• Finance Related Laws and Regulations
• Our ability to grow our complementary product and service offerings may be limited, which could negatively impact our growth rate, revenues and financial performance
• If our cybersecurity measures are breached or there is a disruption in our technology systems, our business, brand, operating results, and financial condition could be harmed
• Failure to adequately protect our intellectual property, technology, and confidential information could reduce our competitiveness and harm our business and operating results
• An inability to obtain adequate insurance on our inventory or auto liability insurance, or the affordability of such insurance, may materially adversely affect our financial condition and results of operations
• We depend on key personnel to operate our business. If we are unable to retain, attract, and integrate qualified personnel, our ability to develop and successfully grow our business could be harmed
• We may not receive the full, expected benefit from our minority equity investments, including Root, Inc
• We are, and may in the future be, subject to legal proceedings, claims, and investigations, which could have a material adverse effect on our business, results of operations, and financial condition
• Our results of operations and financial condition are subject to management’s accounting judgments, estimates, and changes in accounting policies
• We depend on the sale of automotive finance receivables for a substantial portion of our gross profit
• Any material decline in our access to the capital markets at competitive rates and in sufficient amounts could harm our business, results of operations, and financial condition
• Errors in our contracts with our customers could render them unenforceable, ineligible for sale, or require us to repurchase them
• We may experience greater credit losses or prepayments in automotive finance receivables than we anticipate
• Risk Retention Rules may increase our compliance costs, limit our liquidity and otherwise adversely affect our operating results
• Conflicts of interest could arise between our stockholders and the LLC Unitholders, which may impede business decisions that could benefit our stockholders
• The amounts that we may be required to pay to the LLC Unitholders under the Tax Receivable Agreement may be accelerated in certain circumstances and may also significantly exceed the actual tax benefits that we ultimately realize
• We will not be reimbursed for any payments made to the LLC Unitholders under the Tax Receivable Agreement in the event that any tax benefits are disallowed
• We may not be able to realize all or a portion of the tax benefits that are currently expected to result from future exchanges of LLC Units for our Class A common stock and from payments made under the Tax Receivable Agreement
• The market price of our Class A common stock has been and may continue to be volatile or may decline regardless of our operating performance
• The Garcia Parties control us and their interests may conflict with our or our stockholders’ interests in the future
• Delaware law and certain provisions in our amended and restated certificate of incorporation may prevent efforts by our stockholders to change the direction or management of our company

Filings

Other Consumer Discretionary companies