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Upturn AI SWOT - About
CVNA 
Carvana Co (CVNA)
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Upturn Advisory Summary
03/03/2025: CVNA (5-star) is a SELL. SELL since 3 days. Profits (-11.29%). Updated daily EoD!
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 102.68% | Avg. Invested days 34 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 03/03/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 23.91B USD | Price to earnings Ratio 128.56 | 1Y Target Price 265.56 |
Price to earnings Ratio 128.56 | 1Y Target Price 265.56 | ||
Volume (30-day avg) 3299773 | Beta 3.57 | 52 Weeks Range 67.61 - 292.84 | Updated Date 03/30/2025 |
52 Weeks Range 67.61 - 292.84 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.59 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.54% | Operating Margin (TTM) 7.25% |
Management Effectiveness
Return on Assets (TTM) 7.96% | Return on Equity (TTM) 81.53% |
Valuation
Trailing PE 128.56 | Forward PE 116.28 | Enterprise Value 31326984765 | Price to Sales(TTM) 1.75 |
Enterprise Value 31326984765 | Price to Sales(TTM) 1.75 | ||
Enterprise Value to Revenue 2.29 | Enterprise Value to EBITDA 23.1 | Shares Outstanding 116947000 | Shares Floating 131147446 |
Shares Outstanding 116947000 | Shares Floating 131147446 | ||
Percent Insiders 1.42 | Percent Institutions 94.01 |
Analyst Ratings
Rating 3.62 | Target Price 252.16 | Buy 5 | Strong Buy 6 |
Buy 5 | Strong Buy 6 | ||
Hold 12 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Carvana Co
Company Overview
History and Background
Carvana Co. was founded in 2012. It revolutionized the used car buying experience by offering online shopping, financing, and delivery. Initially, it focused on a few markets and expanded nationally. Significant milestones include launching the car vending machine and achieving rapid revenue growth.
Core Business Areas
- Retail Sales: This segment involves purchasing, reconditioning, selling, and delivering used vehicles directly to customers through its online platform.
- Wholesale Sales: This segment consists of sales of vehicles acquired by the company which do not meet retail standards, or are otherwise sold to wholesalers.
- Finance and Other: This segment includes the facilitation of vehicle financing, extended warranties, and other value-added services to customers. It involves financing origination and servicing activities.
Leadership and Structure
Ernest Garcia III is the President and CEO. The company has a typical corporate structure with departments such as operations, technology, finance, and marketing. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Used Vehicle Sales: Carvana's primary offering is the sale of used vehicles through its online platform. Competitors include traditional dealerships and online marketplaces such as AutoNation (AN), CarMax (KMX) and Vroom (VRM). Market share data is fragmented, but Carvana's share of the online used car market is estimated to be significant, but is not an overall market leader.
- Vehicle Financing: Carvana offers financing options to its customers to facilitate vehicle purchases. Competitors include banks, credit unions, and other auto lenders. Revenue from financing is a substantial portion of overall revenue.
- Extended Warranties: Carvana sells extended warranties as an upsell. Competitors include companies such as Assurant (AIZ) and Ally Financial (ALLY). Revenue is less than Used Vehicle Sales but important for margin expansion.
Market Dynamics
Industry Overview
The used car market is large and highly fragmented. Digitalization is increasing, with more consumers preferring online shopping experiences. The industry is cyclical and sensitive to economic conditions.
Positioning
Carvana positions itself as a tech-enabled disruptor in the used car market, offering a convenient and transparent online buying experience. Its competitive advantages include its online platform, national footprint, and vending machine novelty.
Total Addressable Market (TAM)
The total addressable market for used cars in the US is estimated to be hundreds of billions of dollars annually. Carvana is positioned to capture a growing share of this market through its online model and brand recognition.
Upturn SWOT Analysis
Strengths
- Online platform
- National footprint
- Car vending machines
- Proprietary technology
- Brand recognition
Weaknesses
- High debt levels
- History of negative profitability
- Operational inefficiencies
- Customer service issues reported
- Dependence on financing
Opportunities
- Expanding market share in online used car sales
- Increasing financing penetration
- Improving operational efficiency
- Partnerships and acquisitions
- Expanding service offerings (e.g., maintenance)
Threats
- Economic downturn
- Increased competition
- Changes in consumer preferences
- Regulatory changes
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- KMX
- AN
- VRM
Competitive Landscape
Carvana's advantages lie in its online platform and brand. Disadvantages include high debt and lack of profitability relative to competitors.
Major Acquisitions
ADESA U.S.
- Year: 2022
- Acquisition Price (USD millions): 2200
- Strategic Rationale: Acquisition was intended to significantly increase Carvana's vehicle inspection and reconditioning capacity and expand its logistics network.
Growth Trajectory and Initiatives
Historical Growth: Carvana experienced rapid growth in its early years, driven by expansion into new markets and increased online sales. Growth has slowed recently.
Future Projections: Analyst projections vary, but generally anticipate continued revenue growth. Profitability is a key area of focus and uncertainty. See sources for details.
Recent Initiatives: Recent initiatives include cost-cutting measures, debt restructuring, and efforts to improve operational efficiency and customer service.
Summary
Carvana has disrupted the used car market with its online platform, offering a novel buying experience. However, the company faces significant challenges related to profitability and debt management. Improving operational efficiency and navigating the competitive landscape are crucial for its future success. Recent initiatives show that they have been working hard to get back on track, however they are still in a tough situation. It is important to keep an eye on if they are working on what they need to improve.
Similar Companies
- KMX
- AN
- VRM
- ALLY
Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Analyst reports
- Industry publications
- Market research reports
Disclaimers:
This analysis is based on available information and is subject to change. Investment decisions should be made after conducting thorough due diligence.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Carvana Co
Exchange NYSE | Headquaters Tempe, AZ, United States | ||
IPO Launch date 2017-04-28 | Co-Founder, President, CEO & Chairman Mr. Ernest C. Garcia III | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 17400 | Website https://www.carvana.com |
Full time employees 17400 | Website https://www.carvana.com | ||
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company offers vehicle acquisition, inspection and reconditioning, online search and shopping experience, financing, complementary products, logistics network and distinctive fulfillment experience, and post-sale customer support services. It also operates auction sites. Carvana Co. was founded in 2012 and is based in Tempe, Arizona.
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