Carvana Co. Fundamental Analysis (NYSE: CVNA)
Carvana Co. (NYSE: CVNA) shows moderate financial fundamentals with a PE ratio of 24.29, profit margin of 6.26%, and ROE of 46.57%. The company generates $38.3B in annual revenue with strong year-over-year growth of 48.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CVNA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCVNA demonstrates superior asset utilization.
Valuation Score
ExcellentCVNA trades at attractive valuation levels.
Growth Score
ModerateCVNA shows steady but slowing expansion.
Financial Health Score
ModerateCVNA shows balanced financial health with some risks.
Profitability Score
ModerateCVNA maintains healthy but balanced margins.
Key Financial Metrics
Is CVNA Expensive or Cheap?
P/E Ratio
CVNA trades at 24.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CVNA's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Carvana Co. at 12.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 521.80 times EBITDA. This signals the market has high growth expectations.
How Well Does CVNA Make Money?
Net Profit Margin
For every $100 in sales, Carvana Co. keeps $6.26 as profit after all expenses.
Operating Margin
Core operations generate 8.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $46.57 in profit for every $100 of shareholder equity.
ROA
Carvana Co. generates $10.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Carvana Co. generates limited operating cash flow of $1.71B, signaling weaker underlying cash strength.
Free Cash Flow
Carvana Co. produces free cash flow of $1.42B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.29 in free cash annually.
FCF Yield
CVNA converts 1.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How CVNA Stacks Against Its Sector Peers
| Metric | CVNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.29 | 26.74 | Neutral |
| ROE | 46.57% | 965.00% | Weak |
| Net Margin | 6.26% | -4914.00% (disorted) | Weak |
| Debt/Equity | 1.40 | 0.61 | Weak (High Leverage) |
| Current Ratio | 3.93 | 2.31 | Strong Liquidity |
| ROA | 10.78% | 295.00% | Weak |
CVNA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Carvana Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
488.15%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
180.39%
Industry Style: Cyclical, Growth, Discretionary
High Growth