Is Carvana Stock a Good Investment?

Carvana Investment Advice

CVNA

To provide specific investment advice or recommendations on Carvana Co stock, we recommend investors consider the following general factors when evaluating Carvana Co. This will help you to make an informed decision on whether to include Carvana in one of your diversified portfolios:

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

Macroaxis provides unbiased investment recommendation on Carvana that should be used to complement current analysts and expert consensus on Carvana Co. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Carvana is not overpriced, please confirm all Carvana fundamentals, including its price to earning, net income, cash flow from operations, as well as the relationship between the revenue and total debt . Given that Carvana has a number of shares shorted of 29.16 M, we suggest you to validate Carvana Co market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Not too volatile	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Hold	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 91.0% of the company shares are held by institutions such as insurance companies. The company recorded a loss per share of 4.18. Carvana 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 is way too risky over 90 days horizon
	Carvana appears to be risky and price may revert if volatility continues
	Over 91.0% of the company shares are held by institutions such as insurance companies
	Latest headline from fool.com: Carvana Stock Is Up 35 percent So Far in 2024. Can the Rally Continue

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
State Street Corporation	2023-12-31	2.3 M
Thrive Capital Management, Llc(ny)	2023-12-31	2.3 M
Camelot Capital Partners Llc	2023-12-31	2.2 M
Goldman Sachs Group Inc	2023-12-31	2.1 M
Geode Capital Management, Llc	2023-12-31	2.1 M
Fpr Partners Llc	2023-12-31	1.8 M
Renaissance Technologies Corp	2023-12-31	1.8 M
First Trust Advisors L.p.	2023-12-31	1.5 M
Goodnow Investment Group Llc	2023-12-31	1.5 M
Morgan Stanley - Brokerage Accounts	2023-12-31	16.9 M
Vanguard Group Inc	2023-12-31	10 M

Note, although Carvana's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Carvana's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 13.72 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Carvana's market, we take the total number of its shares issued and multiply it by Carvana's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

12.45 Billion

Carvana's profitablity analysis

Carvana's profitability indicators refer to fundamental financial ratios that showcase Carvana's ability to generate income relative to its revenue or operating costs. If, let's say, Carvana is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Carvana's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Carvana's profitability requires more research than a typical breakdown of Carvana's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	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

The company has Profit Margin (PM) of 0.04 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of (0.01) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.01.

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.

The data published in Carvana's official financial statements usually reflect Carvana's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Carvana. For example, before you start analyzing numbers published by Carvana accountants, it's critical to develop an understanding of what Carvana's liquidity, profitability, and earnings quality are in the context of the Specialty Retail space in which it operates.

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. Whatever the case, the imprecision that can be found in Carvana's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Carvana Co. Please utilize our Beneish M Score to check the likelihood of Carvana's management manipulating its earnings.

Evaluate Carvana's management efficiency

At present, Carvana's Return On Tangible Assets are projected to slightly decrease 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). 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.

	Last Reported	Projected for Next Year
Book Value Per Share	2.22	4.02
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	(3.99)	(3.79)
Enterprise Value Over EBITDA	42.57	44.70
Price Book Value Ratio	23.82	16.82
Enterprise Value Multiple	42.57	44.70
Price Fair Value	23.82	16.82
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

3.301

Basic technical analysis of Carvana Stock

As of the 25th of April, Carvana shows the Mean Deviation of 4.19, downside deviation of 4.39, and Risk Adjusted Performance of 0.1061. 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. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Carvana Co, which can be compared to its peers. Please confirm Carvana value at risk, and the relationship between the jensen alpha and semi variance to decide if Carvana is priced correctly, providing market reflects its regular price of 75.35 per share. Given that Carvana has jensen alpha of 0.6195, we suggest you to validate Carvana Co's prevailing market performance to make sure the company can sustain itself at a future point.

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.

		Mark Jenkins over two weeks ago Acquisition by Mark Jenkins of 36795 shares of Carvana at 51.97 subject to Rule 16b-3
		Mark Jenkins over a month ago Disposition of 5000 shares by Mark Jenkins of Carvana at 79.37 subject to Rule 16b-3
		Ernest Garcia over a month ago Acquisition by Ernest Garcia of 32578 shares of Carvana subject to Rule 16b-3
		Thomas Taira over three months ago Payment of tradable shares by Thomas Taira of Carvana subject to Rule 16b-3
		Thomas Taira over three months ago Payment of tradable shares by Thomas Taira of Carvana subject to Rule 16b-3
		Thomas Taira over six months ago Payment of tradable shares by Thomas Taira of Carvana subject to Rule 16b-3

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.

CARVANA 5625 percent Corp Bond

US146869AB81

View

View All Carvana Corporate Bonds

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	0.1061
	Market Risk Adjusted Performance	0.2513
	Mean Deviation	4.19
	Semi Deviation	3.77
	Downside Deviation	4.39
	Coefficient Of Variation	642.08
	Standard Deviation	6.22
	Variance	38.66
	Information Ratio	0.1404
	Jensen Alpha	0.6195
	Total Risk Alpha	0.1077
	Sortino Ratio	0.1987
	Treynor Ratio	0.2413
	Maximum Drawdown	40.53
	Value At Risk	(6.88)
	Potential Upside	9.56
	Downside Variance	19.31
	Semi Variance	14.2
	Expected Short fall	(4.82)
	Skewness	2.06
	Kurtosis	8.71

	Risk Adjusted Performance	0.1061
	Market Risk Adjusted Performance	0.2513
	Mean Deviation	4.19
	Semi Deviation	3.77
	Downside Deviation	4.39
	Coefficient Of Variation	642.08
	Standard Deviation	6.22
	Variance	38.66
	Information Ratio	0.1404
	Jensen Alpha	0.6195
	Total Risk Alpha	0.1077
	Sortino Ratio	0.1987
	Treynor Ratio	0.2413
	Maximum Drawdown	40.53
	Value At Risk	(6.88)
	Potential Upside	9.56
	Downside Variance	19.31
	Semi Variance	14.2
	Expected Short fall	(4.82)
	Skewness	2.06
	Kurtosis	8.71

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	0.0706
	Daily Balance Of Power	(0.05)
	Rate Of Daily Change	1.0
	Day Median Price	74.8
	Day Typical Price	74.98
	Market Facilitation Index	5.47
	Price Action Indicator	0.42
	Period Momentum Indicator	(0.27)
	Relative Strength Index	50.33

Carvana Corporate Filings

F4	15th of April 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	View Verify
	26th of March 2024 Other Reports	View Verify
	23rd of February 2024 Other Reports	View Verify
8K	22nd of February 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Carvana time-series forecasting models is one of many Carvana's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Carvana's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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 2024-04-26 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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Carvana without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Carvana Corporate Directors

Carvana corporate directors refer to members of a Carvana board of directors. The board of directors generally takes responsibility for the Carvana's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Carvana's board members must vote for the resolution. The Carvana board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

Ira Platt	Independent Director	Profile
Dan Quayle	Independent Director	Profile
Neha Parikh	Independent Director	Profile
Michael Maroone	Lead Independent Director	Profile

How to buy Carvana Stock?

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.

Already Invested in Carvana Co?

The danger of trading Carvana Co is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Carvana is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Carvana. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Carvana is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

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: