A Business at a Glance
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CARVANA CO.
CVNA
$10.1B
Mkt Cap
$60.46
+0.45%
CARVANA CO. (CVNA) has a current P/E ratio of 7.2, compared to its historical median P/E of 62.6. The stock is currently considered Cheap based on its historical valuation range.
CARVANA CO. (CVNA) has a 5-year average return on invested capital (ROIC) of 5.7%. This is below average and may indicate limited pricing power.
CARVANA CO. (CVNA) has a market capitalization of $10.1B. It is classified as a large-cap stock.
CARVANA CO. (CVNA) does not currently pay a regular dividend.
Based on historical P/E analysis, CARVANA CO. (CVNA) appears cheap. The current P/E of 7.2 is 89% below its historical median of 62.6. The estimated fair value CAGR (P/E method) is 26.9%.
CARVANA CO. (CVNA) operates in the Retail-Auto Dealers & Gasoline Stations industry, within the Consumer Cyclical sector.
CARVANA CO. (CVNA) reported annual revenue of $20.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Carvana is the leading e-commerce platform for buying and selling used cars in the United States, operating a vertically integrated business model that combines an online sales experience with proprietary logistics, inspection, and financing capabilities. The company acquires used vehicle inventory directly from customers through trade-ins and one-way sales, as well as from auctions and wholesale suppliers, then transports vehicles to inspection and reconditioning centers where trained technicians perform standardized inspections and cosmetic work before listing them on the company's mobile-optimized website featuring patented photo technology and 360-degree virtual tours. Carvana generates revenue primarily from retail vehicle unit sales, complemented by integrated financing through a proprietary loan origination platform with credit scoring algorithms, vehicle service contracts, guaranteed asset protection waivers, and auto insurance partnerships; the company also derives revenue from wholesale vehicle sales and a digital auction platform. The business model is asset-intensive, requiring significant capital investment in reconditioning infrastructure, logistics networks, and technology, but benefits from powerful network effects through a nationally pooled inventory of over 75,000 vehicles that increases customer choice and conversion likelihood. Carvana's competitive advantages include its vertically integrated control over pricing, financing terms, logistics, and customer experience; proprietary technology for vehicle photography and credit underwriting trained on over ten years of company-originated loans; and an efficient hub-and-spoke logistics network spanning 316 metropolitan statistical areas that services over 80% of the U.S. population and enables same-day or next-day delivery in certain markets. The company operates in a highly fragmented market where the top 10 used auto retailers account for less than 10% of market share, with Carvana holding approximately 1.6% of the used car market as of 2025, positioning it to benefit from secular e-commerce adoption trends and market consolidation opportunities.
【Profitable growth acceleration】 Management expects significant growth in both retail units sold and adjusted EBITDA in full year 2026, with sequential increases in both metrics anticipated in Q1 2026 compared to Q4 2025. The company plans to maintain three key objectives from 2025 while placing additional weight on driving significant profitable growth at scale, with a long-term target of 13.5% adjusted EBITDA margin achievable through leverage in advertising and overhead expenses as the business scales. Management expects to continue sharing fundamental gains with customers over time while marching toward the 13.5% margin target, and anticipates that overhead expenses will demonstrate significant leverage relative to retail unit growth. The company is focused on raising conversion rates, improving delivery speed, and streamlining customer support to reinforce brand trust and drive sustained demand, while continuing to integrate ADESA auction locations to enhance reconditioning capacity and create additional inventory pools closer to customers.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $2.0 to $2.2 billion | Full year 2025 |
| Retail units sold and Adjusted EBITDA | significant growth | Full year 2026 |
Adjusted EBITDA (Full year 2025): “adjusted EBITDA of $2.0 to $2.2 billion for the full year 2025”
Retail units sold and Adjusted EBITDA (Full year 2026): “we expect significant growth in both retail units sold and Adjusted EBITDA in full year 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 22.5B | 20.3B | 13.7B | 10.8B | 13.6B | 12.8B |
| Net Income | 1.4B | 1.4B | 210M | 450M | -1.6B | -135M |
| EPS | $0.00 | $8.45 | $1.59 | $0.75 | $-15.74 | $-1.63 |
| Free Cash Flow | 740M | 889M | 827M | 716M | -1.8B | -3.2B |
| ROIC | 24.5% | 35.1% | 17.9% | 7.7% | -33.2% | 1.2% |
| Gross Margin | 20.1% | 20.6% | 21.0% | 16.0% | 9.2% | 15.1% |
| Debt/Equity | 1.37 | 1.58 | 4.74 | 29.33 | -16.83 | 18.70 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 2.1B | 1.9B | 990M | -80M | -2.4B | 42M |
| Operating Margin | 9.2% | 9.3% | 7.2% | -0.7% | -17.3% | 0.3% |
| ROE | 38.7% | 59.9% | 27.9% | -327.3% | - | -38.9% |
| Shares Outstanding | 167M | 167M | 132M | 600M | 101M | 83M |
| Metric | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||||
| Revenue | 130M | 365M | 859M | 2.0B | 3.9B | 5.6B | 12.8B | 13.6B | 10.8B | 13.7B | 20.3B | 22.5B |
| Gross Margin | 1.0% | 5.3% | 7.9% | 10.1% | 12.9% | 14.2% | 15.1% | 9.2% | 16.0% | 21.0% | 20.6% | 20.1% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 37M | 109M | 223M | 425M | 787M | 1.1B | 2.0B | 2.7B | 1.8B | 1.9B | 2.3B | 2.5B |
| EBIT | -35M | -90M | -57M | -36M | -34M | -40M | 42M | -2.4B | -80M | 990M | 1.9B | 2.1B |
| Op. Margin | -27.1% | -24.5% | -6.6% | -1.8% | -0.9% | -0.7% | 0.3% | -17.3% | -0.7% | 7.2% | 9.3% | 9.2% |
| Net Income | -37M | -93M | -64M | -61M | -115M | -171M | -135M | -1.6B | 450M | 210M | 1.4B | 1.4B |
| Net Margin | -28.2% | -25.5% | -7.5% | -3.1% | -2.9% | -3.1% | -1.1% | -11.7% | 4.2% | 1.5% | 6.9% | 6.4% |
| Non-Recurring | 0 | 0 | -958K | -575K | -2.0M | -6.0M | -1.0M | 833M | -8.0M | -12M | -3.0M | -3.0M |
| Returns on Capital | ||||||||||||
| ROIC | N/A | -26.7% | -17.6% | -18.0% | -3.1% | -2.5% | 1.2% | -33.2% | 7.7% | 17.9% | 35.1% | 24.5% |
| ROE | N/A | 80.3% | -51.3% | -59.5% | -129.4% | -70.4% | -38.9% | N/A | -327.3% | 27.9% | 59.9% | 38.7% |
| ROA | N/A | -27.7% | -13.2% | -7.5% | -7.5% | -6.7% | -2.7% | -20.2% | 5.7% | 2.7% | 13.0% | 10.5% |
| Cash Flow | ||||||||||||
| Op. Cash Flow | -54M | -240M | -200M | -414M | -757M | -608M | -2.6B | -1.3B | 803M | 918M | 1.0B | 911M |
| Free Cash Flow | -67M | -280M | -278M | -558M | -988M | -968M | -3.2B | -1.8B | 716M | 827M | 889M | 740M |
| Owner Earnings | -54M | -251M | -226M | -440M | -792M | -635M | -2.6B | -1.4B | 713M | 809M | 926M | -692M |
| CapEx | 14M | 40M | 78M | 144M | 231M | 360M | 557M | 512M | 87M | 91M | 147M | 171M |
| Maint. CapEx | 0 | 9.8M | 20M | 1.1M | 2.0M | 2.0M | 2.0M | 16M | 17M | 18M | 14M | 1.5B |
| Growth CapEx | N/A | 30M | 58M | 143M | 229M | 358M | 555M | 496M | 70M | 73M | 133M | 0 |
| D&A | 0 | 9.8M | 20M | 1.1M | 2.0M | 2.0M | 2.0M | 16M | 17M | 18M | 14M | 1.5B |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10.8% | 9.9% | 14.2% | 18.8% |
| Capital Allocation | ||||||||||||
| Dividends Paid | 34M | 0 | 0 | 4.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 490K | 555K | 5.6M | 24M | 33M | 25M | 39M | 69M | 73M | 91M | 96M | 99M |
| Debt Repayment | 150K | 728K | 35M | 11M | 11M | 29M | 24M | 75M | 69M | 4.0M | 17M | 17M |
| Balance Sheet | ||||||||||||
| Net Debt | -43M | 132M | 130M | 555M | 1.4B | 1.4B | 4.9B | 8.0B | 6.2B | 3.8B | 2.6B | 2.2B |
| Cash & Equiv. | 43M | 39M | 173M | 79M | 76M | 301M | 403M | 434M | 530M | 1.7B | 2.3B | 2.9B |
| Long-Term Debt | 0 | 4.4M | 48M | 425M | 883M | 1.6B | 3.2B | 6.6B | 5.4B | 5.3B | 4.8B | 4.8B |
| Debt/Equity | N/A | -1.47 | 2.40 | 7.95 | 16.37 | 4.75 | 18.70 | -16.83 | 29.33 | 4.74 | 1.58 | 1.37 |
| Interest Coverage | -25.0 | -25.0 | -7.4 | -1.4 | -0.4 | -0.3 | 0.2 | -4.8 | -0.1 | 1.5 | 3.7 | 229.8 |
| Equity | 0 | -116M | 126M | 80M | 98M | 388M | 306M | -518M | 243M | 1.3B | 3.4B | 3.7B |
| Total Assets | 0 | 336M | 641M | 991M | 2.1B | 3.0B | 7.0B | 8.7B | 7.1B | 8.5B | 13.2B | 13.8B |
| Total Liabilities | 0 | 201M | 362M | 764M | 1.9B | 2.2B | 6.5B | 9.8B | 7.5B | 7.1B | 9.0B | 9.1B |
| Intangibles | N/A | N/A | 0 | 8.9M | 7.2M | 6.0M | 4.0M | 70M | 52M | 34M | 47M | 49M |
| Retained Earnings | N/A | N/A | -13M | -68M | -183M | -354M | -489M | -2.1B | -1.6B | -1.4B | -9.0M | 241M |
| Working Capital | N/A | 79M | 184M | 333M | 495M | 1.5B | 2.0B | 2.0B | 1.8B | 3.5B | 5.0B | 5.4B |
| Current Assets | 789K | 275M | 490M | 663M | 1.4B | 1.9B | 4.9B | 4.6B | 3.3B | 4.9B | 6.5B | 7.2B |
| Current Liabilities | N/A | 196M | 306M | 330M | 865M | 467M | 2.9B | 2.6B | 1.5B | 1.3B | 1.5B | 1.8B |
| Per Share Data | ||||||||||||
| EPS | N/A | N/A | N/A | N/A | -2.45 | -2.63 | -1.63 | -15.74 | 0.75 | 1.59 | 8.45 | 0.00 |
| Owner EPS | N/A | N/A | N/A | N/A | -16.87 | -9.77 | -31.82 | -13.97 | 1.19 | 6.13 | 5.56 | -4.16 |
| Book Value | N/A | N/A | N/A | N/A | 2.09 | 5.97 | 3.69 | -5.14 | 0.41 | 9.54 | 20.67 | 22.34 |
| Cash Flow/Share | N/A | N/A | N/A | N/A | -16.13 | -9.35 | -31.32 | -13.13 | 1.34 | 6.95 | 6.22 | 17.69 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | N/A | N/A | N/A | N/A | 46.9M | 65.0M | 82.8M | 100.8M | 600.0M | 132.1M | 166.5M | 166.5M |
| Valuation | ||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 73.2 | 135.3 | 51.9 | N/A |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 46.0 | 34.4 | 82.1 | 13.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 32.2 | 40.0 | 5.9 |
| Price/Book | N/A | N/A | 22.7 | 60.5 | 171.7 | 112.1 | 144.4 | N/A | 48.2 | 22.5 | 21.2 | 2.7 |
| Price/Sales | N/A | N/A | 2.8 | 2.8 | 2.9 | 4.4 | 4.3 | 0.9 | 0.5 | 1.3 | 2.5 | 0.4 |
| FCF Yield | N/A | N/A | -9.7% | -11.6% | -5.9% | -2.2% | -7.1% | -237.4% | 6.1% | 2.9% | 1.2% | 7.4% |
| Market Cap | 0 | N/A | 2.9B | 4.8B | 16.9B | 43.5B | 44.2B | 773M | 11.7B | 28.4B | 73.0B | 10.1B |
| Avg. Price | 0.00 | N/A | 16.40 | 36.41 | 65.26 | 143.32 | 289.07 | 63.12 | 25.50 | 132.54 | 305.54 | 60.46 |
| Year-End Price | 0.00 | N/A | 19.63 | 31.79 | 97.82 | 251.49 | 233.76 | 3.83 | 54.91 | 215.09 | 438.47 | 60.46 |
CARVANA CO. passes 4 of 9 quality checks, suggesting mixed fundamentals.
CARVANA CO. trades at 7.2x trailing earnings, compared to its 15-year median P/E of 62.6x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 9.7x vs a median of 46.0x. The company's 5-year average ROIC is 5.7% with a gross margin of 16.4%. At current prices, the estimated annualized return to fair value is +4.5%.
CARVANA CO. (CVNA) has a net profit margin of 6.9%. This is a modest margin.
CARVANA CO. (CVNA) generated $889 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CARVANA CO. (CVNA) has a debt-to-equity ratio of 1.58. This indicates higher leverage, which may increase financial risk.
CARVANA CO. (CVNA) reported earnings per share (EPS) of $8.45 in its most recent fiscal year.
CARVANA CO. (CVNA) has a return on equity (ROE) of 59.9%. This indicates the company generates strong returns for shareholders.
CARVANA CO. (CVNA) has a 5-year average gross margin of 16.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 11 years of financial data for CARVANA CO. (CVNA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CARVANA CO. (CVNA) has a book value per share of $20.67, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects significant growth in both retail units sold and adjusted EBITDA in full year 2026, with sequential increases in both metrics anticipated in Q1 2026 compared to Q4 2025. The company plans to maintain three key objectives from 2025 while placing additional weight on driving significant profitable growth at scale, with a long-term target of 13.5% adjusted EBITDA margin achievable through leverage in advertising and overhead expenses as the business scales. Management expects to continue sharing fundamental gains with customers over time while marching toward the 13.5% margin target, and anticipates that overhead expenses will demonstrate significant leverage relative to retail unit growth. The company is focused on raising conversion rates, improving delivery speed, and streamlining customer support to reinforce brand trust and drive sustained demand, while continuing to integrate ADESA auction locations to enhance reconditioning capacity and create additional inventory pools closer to customers.
Based on recent SEC filings and earnings calls, CARVANA CO. (CVNA) has provided the following forward guidance: Adjusted EBITDA: $2.0 to $2.2 billion (Full year 2025); Retail units sold and Adjusted EBITDA: significant growth (Full year 2026).