Is Carvana Stock a Good Investment?
Carvana Investment Advice | CVNA |
- Examine Carvana's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Carvana's leadership team and their track record. Good management can help Carvana navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact Carvana's business and its evolving consumer preferences.
- Compare Carvana's performance and market position to its competitors. Analyze how Carvana is positioned in terms of product offerings, innovation, and market share.
- Check if Carvana pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Carvana's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Carvana Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Carvana Co is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Carvana Stock
Researching Carvana's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company shares are held by institutions such as insurance companies. The company had not issued any dividends in recent years.
To determine if Carvana is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Carvana's research are outlined below:
| Carvana appears to be risky and price may revert if volatility continues | |
| Over 95.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from kalkinemedia.com: Can Carvana Sustain Its Impressive Growth |
Carvana uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Carvana Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Carvana's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Carvana's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Carvana's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-05-08 | 2019-03-31 | -0.47 | -0.53 | -0.06 | 12 | ||
2019-02-27 | 2018-12-31 | -0.49 | -0.55 | -0.06 | 12 | ||
2020-10-29 | 2020-09-30 | -0.32 | -0.25 | 0.07 | 21 | ||
2021-11-04 | 2021-09-30 | -0.28 | -0.38 | -0.1 | 35 | ||
2024-02-22 | 2023-12-31 | -0.89 | -1.0 | -0.11 | 12 | ||
2020-02-26 | 2019-12-31 | -0.63 | -0.79 | -0.16 | 25 | ||
2019-11-06 | 2019-09-30 | -0.4 | -0.56 | -0.16 | 40 | ||
2022-02-24 | 2021-12-31 | -0.82 | -1.02 | -0.2 | 24 |
Know Carvana's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Carvana is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Carvana Co backward and forwards among themselves. Carvana's institutional investor refers to the entity that pools money to purchase Carvana's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Camelot Capital Partners Llc | 2024-06-30 | 2.2 M | Two Sigma Investments Llc | 2024-06-30 | 2 M | State Street Corp | 2024-06-30 | 1.8 M | Geode Capital Management, Llc | 2024-06-30 | 1.7 M | Goldman Sachs Group Inc | 2024-06-30 | 1.6 M | Kps Global Asset Management Uk Ltd | 2024-06-30 | 1.5 M | Jane Street Group, Llc | 2024-06-30 | 1.3 M | Goodnow Investment Group Llc | 2024-06-30 | 1.1 M | General Equity Holdings Lp | 2024-06-30 | 1.1 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 12.1 M | Vanguard Group Inc | 2024-06-30 | 10 M |
Carvana's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 18.31 B.Market Cap |
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Carvana's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.07 | |
| Return On Capital Employed | (0.01) | (0.01) | |
| Return On Assets | 0.06 | 0.07 | |
| Return On Equity | 1.85 | 1.94 |
Determining Carvana's profitability involves analyzing its financial statements and using various financial metrics to determine if Carvana is a good buy. For example, gross profit margin measures Carvana's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Carvana's profitability and make more informed investment decisions.
Please note, the presentation of Carvana's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Carvana's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Carvana's management manipulating its earnings.
Evaluate Carvana's management efficiency
Carvana has return on total asset (ROA) of 0.0338 % which means that it generated a profit of $0.0338 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (12.686) %, meaning that it created substantial loss on money invested by shareholders. Carvana's management efficiency ratios could be used to measure how well Carvana manages its routine affairs as well as how well it operates its assets and liabilities. At present, Carvana's Return On Tangible Assets are projected to increase slightly based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.07, whereas Return On Capital Employed is forecasted to decline to (0.01). At present, Carvana's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 174.4 M, whereas Net Tangible Assets are projected to grow to (502.7 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (3.51) | (3.34) | |
| Tangible Book Value Per Share | (3.99) | (3.79) | |
| Enterprise Value Over EBITDA | 42.57 | 44.70 | |
| Price Book Value Ratio | 23.82 | 15.78 | |
| Enterprise Value Multiple | 42.57 | 44.70 | |
| Price Fair Value | 23.82 | 15.78 | |
| Enterprise Value | 15.4 B | 13.7 B |
The analysis of Carvana's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Carvana's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Carvana Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta 3.441 |
Basic technical analysis of Carvana Stock
As of the 19th of September, Carvana shows the Mean Deviation of 3.2, risk adjusted performance of 0.1605, and Downside Deviation of 3.68. Carvana technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Carvana's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Carvana insiders, such as employees or executives, is commonly permitted as long as it does not rely on Carvana's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Carvana insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Carvana's Outstanding Corporate Bonds
Carvana issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Carvana uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Carvana bonds can be classified according to their maturity, which is the date when Carvana Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Carvana's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Carvana's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1605 | |||
| Market Risk Adjusted Performance | 0.3569 | |||
| Mean Deviation | 3.2 | |||
| Semi Deviation | 3.05 | |||
| Downside Deviation | 3.68 | |||
| Coefficient Of Variation | 523.59 | |||
| Standard Deviation | 3.99 | |||
| Variance | 15.91 | |||
| Information Ratio | 0.1625 | |||
| Jensen Alpha | 0.5274 | |||
| Total Risk Alpha | 0.2346 | |||
| Sortino Ratio | 0.1763 | |||
| Treynor Ratio | 0.3469 | |||
| Maximum Drawdown | 17.4 | |||
| Value At Risk | (5.48) | |||
| Potential Upside | 7.6 | |||
| Downside Variance | 13.52 | |||
| Semi Variance | 9.3 | |||
| Expected Short fall | (3.45) | |||
| Skewness | 0.146 | |||
| Kurtosis | (0.29) |
| Risk Adjusted Performance | 0.1605 | |||
| Market Risk Adjusted Performance | 0.3569 | |||
| Mean Deviation | 3.2 | |||
| Semi Deviation | 3.05 | |||
| Downside Deviation | 3.68 | |||
| Coefficient Of Variation | 523.59 | |||
| Standard Deviation | 3.99 | |||
| Variance | 15.91 | |||
| Information Ratio | 0.1625 | |||
| Jensen Alpha | 0.5274 | |||
| Total Risk Alpha | 0.2346 | |||
| Sortino Ratio | 0.1763 | |||
| Treynor Ratio | 0.3469 | |||
| Maximum Drawdown | 17.4 | |||
| Value At Risk | (5.48) | |||
| Potential Upside | 7.6 | |||
| Downside Variance | 13.52 | |||
| Semi Variance | 9.3 | |||
| Expected Short fall | (3.45) | |||
| Skewness | 0.146 | |||
| Kurtosis | (0.29) |
Consider Carvana's intraday indicators
Carvana intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Carvana stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 398046.0 | |||
| Daily Balance Of Power | 0.4814 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 162.51 | |||
| Day Typical Price | 162.21 | |||
| Price Action Indicator | 1.65 | |||
| Period Momentum Indicator | 5.05 |
Carvana Corporate Filings
F4 | 17th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 31st of July 2024 Other Reports | ViewVerify |
Carvana Stock media impact
Far too much social signal, news, headlines, and media speculation about Carvana that are available to investors today. That information is available publicly through Carvana media outlets and privately through word of mouth or via Carvana internal channels. However, regardless of the origin, that massive amount of Carvana data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Carvana news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Carvana relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Carvana's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Carvana alpha.
Carvana Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Carvana can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Carvana Historical Investor Sentiment
Investor biases related to Carvana's public news can be used to forecast risks associated with an investment in Carvana. The trend in average sentiment can be used to explain how an investor holding Carvana can time the market purely based on public headlines and social activities around Carvana Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Carvana's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Carvana and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Carvana news discussions. The higher the estimate score, the more favorable the investor's outlook on Carvana.
Carvana Maximum Pain Price across 2024-09-20 Option Contracts
Carvana's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Carvana close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Carvana's options.
Carvana Corporate Directors
| Ira Platt | Independent Director | Profile | |
| Dan Quayle | Independent Director | Profile | |
| Neha Parikh | Independent Director | Profile | |
| Michael Maroone | Lead Independent Director | Profile |
Additional Information and Resources on Investing in Carvana Stock
When determining whether Carvana offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Carvana's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Carvana Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Carvana Co Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Carvana Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Carvana. If investors know Carvana will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Carvana listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 2.49 | Revenue Per Share 101.398 | Quarterly Revenue Growth 0.149 | Return On Assets 0.0338 | Return On Equity (12.69) |
The market value of Carvana is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana's value that differs from its market value or its book value, called intrinsic value, which is Carvana's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Carvana's market value can be influenced by many factors that don't directly affect Carvana's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Carvana's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Carvana is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.