Carvana Co. [NYSE:CVNA]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Carvana Co. [CVNA], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give CVNA an Outperform rating. Its stock price has been found in the range of 23.44 to 72.59. This is compared to its latest closing price of $64.38.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Carvana Co. [CVNA] is sitting at 2.19. This is compared to 1 month ago, when its average rating was 2.12.
For the quarter ending in Dec-18 Carvana Co. [CVNA] generated $0.58 billion in sales. That’s 3.17% lower than the average estimate of $0.6 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 8 May (In 22 Days).
Fundamental Analysis of Carvana Co. [CVNA]
Now let’s turn to look at profitability: with a current Operating Margin for Carvana Co. [CVNA] sitting at -11.69 and its Gross Margin at +8.86, this company’s Net Margin is now -3.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -38.28, and its Return on Invested Capital has reached -35.90%. Its Return on Equity is -62.02, and its Return on Assets is -7.57. These metrics suggest that this Carvana Co. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Carvana Co. [CVNA] has generated a Total Debt to Total Equity ratio of 862.91. Similarly, its Total Debt to Total Capital is 89.61, while its Total Debt to Total Assets stands at 63.92. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 579.43, and its Long-Term Debt to Total Capital is 60.18. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is -14.82. The Enterprise Value to Sales for this firm is now 1.55, and its Total Debt to Enterprise Value stands at 0.38. Carvana Co. [CVNA] has a Price to Book Ratio of 18.36.
Shifting the focus to workforce efficiency, Carvana Co. [CVNA] earns $504,116 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 19.75 and its Total Asset Turnover is 2.40. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.76 and its Current Ratio is 2.01. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Carvana Co. [CVNA] has 144.17M shares outstanding, amounting to a total market cap of $9.28B. Its stock price has been found in the range of 23.44 to 72.59. At its current price, it has moved by -12.03% from its 52-week high, and it has moved 172.44% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 67.86. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Carvana Co. [CVNA] a Reliable Buy?
Carvana Co. [CVNA] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.