📊 CVNA Key Takeaways
Investment Thesis
Carvana demonstrates exceptional profitability with a 40.9% ROE and strong margin expansion (6.9% net margin) despite operating in a competitive automotive retail sector. The company is generating robust free cash flow of $889M while maintaining healthy liquidity and reasonable leverage, positioning it well for sustainable growth and capital allocation.
CVNA Strengths
- Outstanding return on equity at 40.9% with ROA of 10.7%, indicating highly efficient asset utilization
- Strong revenue growth of 48.6% YoY combined with positive operating leverage driving 9.3% operating margins
- Excellent liquidity position with 4.31x current ratio and $2.3B cash balance, providing financial flexibility
- Solid free cash flow generation of $889M despite capital intensity, demonstrating profitable growth
- Exceptional interest coverage ratio of 10.9x providing ample debt service capacity
CVNA Risks
- Elevated debt-to-equity ratio of 1.43x with $4.9B long-term debt represents material leverage exposure
- Operating margins remain below 10% in competitive automotive retail sector with cyclical demand exposure
- FCF margin of only 4.4% relative to revenue indicates tight cash conversion despite absolute FCF strength
- Recent EPS growth of 431% primarily from share dilution reduction rather than operational improvement
- Significant insider filing activity (30 Form 4s in 90 days) warrants monitoring for sentiment shifts
Key Metrics to Watch
- Operating margin sustainability and gross margin trends amid competitive pricing pressures
- Debt reduction trajectory and management's capital allocation priorities
- Free cash flow conversion and working capital management efficiency
- Revenue growth deceleration trends and unit economics quality
CVNA Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.31x current ratio provides a solid financial cushion.
CVNA Profitability Ratios
CVNA vs Consumer Sector
How CARVANA CO. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CVNA Balance Sheet & Liquidity
CVNA 5-Year Financial Trend
5-Year Trend Summary: CARVANA CO.'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.75 reflects profitable operations.
CVNA Growth Metrics (YoY)
CVNA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.7B | $85.0M | N/A |
| Q2 2025 | $3.4B | $18.0M | N/A |
| Q1 2025 | $3.1B | $28.0M | N/A |
| Q3 2024 | $2.8B | $85.0M | N/A |
| Q2 2024 | $3.0B | $18.0M | N/A |
| Q1 2024 | $2.6B | $28.0M | $0.24 |
| Q3 2023 | $2.8B | -$283.0M | $-2.67 |
| Q2 2023 | $3.0B | -$58.0M | $-0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CVNA Capital Allocation
CVNA SEC Filings
Access official SEC EDGAR filings for CARVANA CO. (CIK: 0001690820)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773694824.xml | View → |
| Mar 11, 2026 | 4 | xslF345X05/wk-form4_1773267335.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773090718.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773090712.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772577670.xml | View → |
❓ Frequently Asked Questions about CVNA
What is the AI rating for CVNA?
CARVANA CO. (CVNA) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVNA's key strengths?
Outstanding return on equity at 40.9% with ROA of 10.7%, indicating highly efficient asset utilization. Strong revenue growth of 48.6% YoY combined with positive operating leverage driving 9.3% operating margins.
What are the risks of investing in CVNA?
Elevated debt-to-equity ratio of 1.43x with $4.9B long-term debt represents material leverage exposure. Operating margins remain below 10% in competitive automotive retail sector with cyclical demand exposure.
What is CVNA's revenue and growth?
CARVANA CO. reported revenue of $20.3B.
Does CVNA pay dividends?
CARVANA CO. does not currently pay dividends.
Where can I find CVNA SEC filings?
Official SEC filings for CARVANA CO. (CIK: 0001690820) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CVNA's EPS?
CARVANA CO. has a diluted EPS of $8.45.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.