Carvana Co. Class A
Find Ratings ReportsCARVANA CO's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. CARVANA CO has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 146.91% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 2424.0 | 2837.0 |
EBITDA ($mil) | 63.0 | -283.0 |
EBIT ($mil) | -37.0 | -383.0 |
Net Income ($mil) | -114.0 | -806.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 960.0 | 949.0 |
Total Assets ($mil) | 7071.0 | 8698.0 |
Total Debt ($mil) | 6767.0 | 8876.0 |
Equity ($mil) | 243.0 | -518.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 18.19 | 8.85 |
EBITDA Margin | 2.59 | -9.97 |
Operating Margin | -1.53 | -13.5 |
Sales Turnover | 1.52 | 1.56 |
Return on Assets | 6.36 | -18.24 |
Return on Equity | 185.19 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.16 | 1.77 |
Debt/Capital | 0.97 | 1.06 |
Interest Expense | 165.0 | 153.0 |
Interest Coverage | -0.22 | -2.5 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 114.24 | 106.04 |
Div / share | 0.0 | 0.0 |
EPS | -1.0 | -7.61 |
Book value / share | 2.13 | -4.89 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 7927495.0 | 8430181.0 |
SELL. CARVANA CO's P/E ratio indicates a significant premium compared to an average of 31.04 for the Motor Vehicle and Parts Dealers subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 36.05 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 6.33. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, CARVANA CO proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CVNA 142.00 | Peers 31.04 | CVNA 10.91 | Peers 17.67 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. CVNA is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CVNA is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CVNA NM | Peers 18.52 | CVNA NM | Peers 2.06 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. CVNA's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CVNA's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CVNA 36.05 | Peers 6.33 | CVNA 103.47 | Peers 17.49 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CVNA is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CVNA is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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CVNA 0.81 | Peers 2.45 | CVNA -20.83 | Peers 13.22 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CVNA is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CVNA significantly trails its peers on the basis of sales growth. |
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