Carvana Co.Find Ratings Reports
CARVANA CO's gross profit margin for the first quarter of its fiscal year 2019 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CARVANA CO has very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 54.47% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY19||Q1 FY18|
|Net Sales ($mil)||755.23||360.42|
|Net Income ($mil)||-28.55||-7.04|
|Balance Sheet||Q1 FY19||Q1 FY18|
|Cash & Equiv. ($mil)||126.59||139.93|
|Total Assets ($mil)||1338.4||720.73|
|Total Debt ($mil)||1008.31||421.46|
|Profitability||Q1 FY19||Q1 FY18|
|Gross Profit Margin||11.72||9.5|
|Return on Assets||-6.22||-2.93|
|Return on Equity||-157.23||-21.23|
|Debt||Q1 FY19||Q1 FY18|
|Share Data||Q1 FY19||Q1 FY18|
|Shares outstanding (mil)||43.24||19.52|
|Div / share||0.0||0.0|
|Book value / share||1.27||6.16|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1450760.0||1964455.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 50.99 indicates a significant premium versus the S&P 500 average of 3.44 and a significant premium versus the industry average of 18.37. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CARVANA CO proves to trade at a premium to investment alternatives.
|CVNA NM||Peers 24.14||CVNA NM||Peers 16.80|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CVNA's P/E is negative making this valuation measure meaningless.
Neutral. 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's P/CF is negative making the measure meaningless.
|CVNA NM||Peers 20.09||CVNA NA||Peers 3.22|
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.
Ratio not available.
|CVNA 50.99||Peers 18.37||CVNA -50.96||Peers 1.32|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CVNA is expected to significantly trail its peers on the basis of its earnings growth rate.
|CVNA 1.19||Peers 1.81||CVNA 121.67||Peers 10.92|
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 industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CVNA has a sales growth rate that significantly exceeds its peers.