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Carvana Co
(NYSE:CVNA)
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Rating:73Outperform
Price Target:
$84.00
▲(10.86% Upside)
Action:Upgraded
Date:08/17/26
CVNA scores well primarily due to the fundamental turnaround (profitability and materially improved balance sheet) and supportive cash generation, reinforced by a constructive earnings outlook and record operating results. Technicals also support the setup with price above key moving averages and positive MACD, though short-term momentum looks stretched (high Stochastics). Valuation is the main restraint, with a 26.13 P/E and no dividend yield provided.
Positive Factors
Strong unit and revenue growth
Record unit growth and revenue expansion indicate strong customer adoption of Carvana’s online model. Continued volume gains can improve purchasing, reconditioning, logistics and advertising efficiency through greater operating scale.
Negative Factors
Per-unit economics and margin pressure
Lower gross profit per unit can offset strong volume growth and make earnings more dependent on scale. Pressure across retail, wholesale and financing economics suggests margin recovery requires disciplined pricing, sourcing and customer-rate management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong unit and revenue growth
Record unit growth and revenue expansion indicate strong customer adoption of Carvana’s online model. Continued volume gains can improve purchasing, reconditioning, logistics and advertising efficiency through greater operating scale.
Read all positive factors
Carvana Co Key Performance Indicators (KPIs)
Any
Retail Units Sold
Tracks the number of vehicles sold directly to consumers, indicating sales performance, market demand, and the company's ability to attract and retain customers.
Tracks the number of vehicles sold directly to consumers, indicating sales performance, market demand, and the company's ability to attract and retain customers.
Data provided by:
The Fly
The FlyCarvana Co (CVNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.38B
Dividend YieldN/A
Average Volume (3M)10.33M
Price to Earnings (P/E)25.6
Beta (1Y)2.41
Revenue Growth53.98%
EPS Growth159.43%
CountryUS
Employees23,100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)2.89
Shares Outstanding719,916,440
10 Day Avg. Volume8,088,283
30 Day Avg. Volume10,333,168
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)16.88
Price to Sales (P/S)2.86
P/FCF Ratio65.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$85.43Price Target Upside12.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)1.62
Revenue Forecast (FY)$28.90B
Carvana Co Business Overview & Revenue Model
Company Description
Carvana Co., along with its subsidiaries, operates a digital platform facilitating the purchase and sale of pre-owned vehicles across the United States. Their comprehensive services span the entire customer journey, including sourcing and recondit...
How the Company Makes Money
Carvana primarily makes money by generating revenue from used-vehicle retail sales and from ancillary services tied to each transaction. A major revenue stream is the sale of used cars to consumers, where the company earns the spread between the v...
Carvana Co Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call highlighted multiple record results — unit sales (+38%), revenue (+52%), adjusted EBITDA dollars ($769M) and net income improvement — plus a strengthened balance sheet (net debt/EBITDA 1.0x) and runway toward long‑term scale goals. Operationally, management is driving recon efficiency, labor productivity and tool rollouts, and they validated the inventory-to-sales feedback loop across regions. Principal challenges include per‑unit GPU compression (retail, wholesale and finance), a decline in adjusted EBITDA margin (12.4% to 10.4%), temporary inventory undergrowth versus sales that constrained conversion, and some cost pressure from fuel and earlier reconditioning disruptions. Overall, the positive financial milestones, strong growth, improved leverage and concrete operational recovery plans materially outweigh the current margin and execution headwinds, leading to a constructive outlook contingent on continued execution.Positive Updates
Record Retail Unit Sales
Retail units sold totaled 197,325 in Q2, a company record and a 38% year‑over‑year increase, demonstrating continued strong demand and execution.
Negative Updates
Adjusted EBITDA Margin Compression
Adjusted EBITDA margin declined to 10.4% from 12.4% year‑over‑year despite higher absolute adjusted EBITDA dollars; management attributed part of the margin mix change to gross revenue accounting for certain partner vehicles and mix effects.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Retail Unit Sales
Retail units sold totaled 197,325 in Q2, a company record and a 38% year‑over‑year increase, demonstrating continued strong demand and execution.
Read all positive updates
Company Guidance
Management guided to a sequential increase in retail units sold in Q3 and full‑year 2026 adjusted EBITDA of $2.7–$3.0 billion (up from $2.24B in 2025); that outlook follows a Q2 that set records with 197,325 retail units sold (+38%), revenue of $7.376 billion (+52%), adjusted EBITDA of $769 million (10.4% margin) and an adjusted‑EBITDA annual run‑rate >$3 billion, GAAP operating income of $680 million (~88% of adj. EBITDA), net income of $513 million (7% margin) and a net debt / trailing‑12‑month adjusted‑EBITDA ratio of 1.0x; management also said Q3 revenue growth should align more closely with unit growth as a prior gross‑revenue treatment lapses and flagged higher advertising spend in Q3.Carvana Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.06B | 20.32B | 13.67B | 10.77B | 13.60B | 12.81B |
| Gross Profit | 4.85B | 4.19B | 2.71B | 1.72B | 1.00B | 1.83B |
| EBITDA | 142.00M | -110.00M | 1.36B | 1.16B | -2.15B | -5.00M |
| Net Income | 1.57B | 1.41B | 210.00M | 450.00M | -1.59B | -135.00M |
Balance Sheet | ||||||
| Total Assets | 14.55B | 13.20B | 8.48B | 7.07B | 8.70B | 7.01B |
| Cash, Cash Equivalents and Short-Term Investments | 2.63B | 2.81B | 2.18B | 896.00M | 755.00M | 785.00M |
| Total Debt | 5.62B | 5.52B | 6.05B | 6.71B | 8.82B | 5.77B |
| Total Liabilities | 9.41B | 9.00B | 7.11B | 7.46B | 9.75B | 6.49B |
| Stockholders Equity | 4.03B | 3.44B | 1.26B | 243.00M | -518.00M | 306.00M |
Cash Flow | ||||||
| Free Cash Flow | 929.00M | 889.00M | 827.00M | 716.00M | -1.84B | -3.15B |
| Operating Cash Flow | 1.12B | 1.04B | 918.00M | 803.00M | -1.32B | -2.59B |
| Investing Cash Flow | -259.00M | -230.00M | -13.00M | 31.00M | -2.58B | -627.00M |
| Financing Cash Flow | -48.00M | -137.00M | 261.00M | -868.00M | 3.90B | 3.53B |
Carvana Co Technical Analysis
Positive
75.77
Price Trends
67.75
Positive
69.91
Positive
72.69
Positive
Market Momentum
1.64
Negative
56.16
Neutral
79.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVNA, the sentiment is Positive. The current price of 75.77 is above the 20-day moving average (MA) of 70.18, above the 50-day MA of 67.75, and above the 200-day MA of 72.69, indicating a bullish trend. The MACD of 1.64 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVNA.
Carvana Co Risk Analysis
Carvana Co disclosed 42 risk factors in its most recent earnings report. Carvana Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carvana Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $81.38B | 25.60 | 46.57% | ― | 53.98% | 159.43% | |
69 Neutral | $6.50B | 9.02 | 33.18% | ― | -0.06% | 35.87% | |
69 Neutral | $72.44B | 27.71 | -232.45% | ― | 8.47% | 12.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $48.96B | 19.66 | -80.35% | ― | 5.74% | -1.73% | |
54 Neutral | $9.06B | 38.91 | 3.67% | ― | -1.69% | -58.01% | |
45 Neutral | $2.66B | 31.34 | 3.79% | 1.79% | -1.30% | ― |
* Consumer Cyclical Sector Average
CVNA
Carvana Co
74.09
-1.39
-1.84%
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ORLY
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87.83
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Carvana Co Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Carvana Secures $1.66 Billion Term Loan Financing
Positive
Aug 14, 2026
On August 14, 2026, Carvana entered into a new $1.66 billion senior secured Term Loan B facility with a maturity in 2033, arranged by Barclays Bank PLC and a syndicate of lenders. The issue was priced at 99.75% of par and carries interest tied to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.