📊 CVNA Key Takeaways
Is Carvana Co. (CVNA) a Good Investment?
Carvana demonstrates impressive 48.6% YoY revenue growth, but profitability is deteriorating—net income flatlined despite explosive sales expansion, indicating margin compression and operational inefficiency. High leverage (1.30x D/E ratio) combined with anemic free cash flow (0.9% FCF margin and $56M on $6.4B revenue) creates financial stress, while weak returns on capital (ROE 6.7%, ROA 1.8%) signal poor capital allocation.
Carvana's fundamentals show a strong turnaround: revenue grew 48.6% year over year while margins expanded to solid levels for an auto retailer, producing $1.88B of operating income and $889M of free cash flow. Liquidity is strong and interest coverage is healthy, but leverage remains meaningful and the business still needs to prove that recent profitability and cash generation are durable through a full cycle.
Carvana Co. Key Strengths (CVNA)
- Strong revenue growth of 48.6% YoY demonstrates market traction and scale expansion
- Solid liquidity position with 4.09x current ratio and $2.4B cash provides operational flexibility
- Positive operating income of $581M shows core business can generate earnings at scale
- Rapid top-line growth with solid conversion into operating profit and free cash flow
- Strong liquidity position, with $2.33B in cash and current ratio of 4.31x
- Improved profitability profile, including 20.6% gross margin, 9.3% operating margin, and 10.9x interest coverage
CVNA Stock Risks: Carvana Co. Investment Risks
- Net income flat YoY despite 48.6% revenue growth signals deteriorating unit economics and margin compression—cost structure not scaling efficiently
- Critically weak free cash flow generation (0.9% FCF margin) insufficient to service 1.30x D/E leverage; 3.4x interest coverage is below-average for debt burden
- Returns on invested capital extremely weak (ROE 6.7%, ROA 1.8%) indicate poor capital efficiency and inability to generate returns justifying the debt load
- Leverage is still elevated, with $4.92B of long-term debt and 1.43x debt-to-equity
- Net income was flat year over year despite major revenue growth, which could signal normalization risk in earnings quality
- Auto retail fundamentals are cyclical and sensitive to credit conditions, consumer demand, and used-vehicle pricing
Key Metrics to Watch
- Gross margin trend—watch for continued compression or stabilization
- Free cash flow conversion as percentage of revenue—critical indicator of sustainability
- Debt/Equity ratio and interest coverage—monitor if leverage becomes unsustainable
- Operating margin and free cash flow margin sustainability
- Debt reduction progress and interest coverage
Carvana Co. (CVNA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.09x current ratio provides a solid financial cushion.
CVNA Profit Margin, ROE & Profitability Analysis
CVNA vs Automotive Sector: How Carvana Co. Compares
How Carvana Co. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Carvana Co. Stock Overvalued? CVNA Valuation Analysis 2026
Based on fundamental analysis, Carvana Co. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Carvana Co. Balance Sheet: CVNA Debt, Cash & Liquidity
CVNA Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CVNA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.2B | $216.0M | N/A |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Carvana Co. Dividends, Buybacks & Capital Allocation
CVNA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Carvana Co. (CIK: 0001690820)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781041481.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780612203.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780528910.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780528905.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780528900.xml | View → |
❓ Frequently Asked Questions about CVNA
What is the AI rating for CVNA?
Carvana Co. (CVNA) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVNA's key strengths?
Claude: Strong revenue growth of 48.6% YoY demonstrates market traction and scale expansion. Solid liquidity position with 4.09x current ratio and $2.4B cash provides operational flexibility. ChatGPT: Rapid top-line growth with solid conversion into operating profit and free cash flow. Strong liquidity position, with $2.33B in cash and current ratio of 4.31x.
What are the risks of investing in CVNA?
Claude: Net income flat YoY despite 48.6% revenue growth signals deteriorating unit economics and margin compression—cost structure not scaling efficiently. Critically weak free cash flow generation (0.9% FCF margin) insufficient to service 1.30x D/E leverage; 3.4x interest coverage is below-average for debt burden. ChatGPT: Leverage is still elevated, with $4.92B of long-term debt and 1.43x debt-to-equity. Net income was flat year over year despite major revenue growth, which could signal normalization risk in earnings quality.
What is CVNA's revenue and growth?
Carvana Co. reported revenue of $6.4B.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CVNA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Carvana Co. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CVNA stock overvalued or undervalued?
Valuation metrics for CVNA: ROE of 6.7% (sector avg: 12%), net margin of 3.9% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is CVNA's AI grade for 2026?
Our dual AI analysis gives Carvana Co. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CVNA's free cash flow?
Carvana Co.'s operating cash flow is $107.0M, with capital expenditures of $51.0M. FCF margin is 0.9%.
How does CVNA compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 3.9% (avg: 6%), ROE 6.7% (avg: 12%), current ratio 4.09 (avg: 1.2).