| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 32.6x | 17.8x | Bottom tier | |
Growth | 95 | 54.0% | 7.1% | Top tier | |
Quality | 68 | 56.7% | 4.5% | Top tier | |
Safety | 72 | 0.6x | 2.6x | Top tier | |
Capital Return | 78 | — | 2.12% | Top tier | |
Momentum | 49 | -4.0% | 2.9% | Around median | |
Sentiment | 80 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Carvana operates a digital platform for buying and selling cars, and its growth capacity depends on expanding inventory, inspection and reconditioning centers, and its delivery and logistics network. The company generates its economics through profits from retail and wholesale vehicle sales, along with financing and other services; management explained that increasing the number of vehicles located near customers raises conversion, reduces delivery times and shipping fees, and improves marketing and logistics efficiency.
In fiscal Q2 2026, Carvana sold 197,325 retail vehicles, up 38%, and recorded record revenue of $7.376 billion, up 52%. Revenue growth exceeded unit growth because of gross revenue accounting treatment for certain vehicles purchased from a major retail marketplace partner, higher industry prices, and a shift toward newer, higher-cost vehicles; management said the accounting treatment effect will cease to affect annual comparisons beginning in fiscal Q3 2026.
Gross profit in EDGAR data for fiscal Q2 2026 was approximately $1.4 billion, equivalent to a gross margin of about 18.9% on revenue of $7.4 billion. EDGAR data reports net income of $310 million, while the earnings call reported net income of $513 million and a net margin of 7%, in addition to operating income of $680 million and record adjusted EBITDA of $769 million at a margin of 10.4%. At the profit-per-unit component level, non-GAAP retail profit declined by $105, wholesale profit by $158, and other profit by $192 year over year.
The analyst consensus on CVNA is “Neutral,” with an average target of $84.55 and a wide range between $67 and $120; the average is about 13% below the 52-week range high of $97.378, while the highest target exceeds that high by about 23%. No P/E ratio is available in the provided data despite fiscal 2025 net income of $1.4 billion and earnings per share of $8.45, so the wide target range and the stock's decline following earnings guidance on July 30, 2026 remain indicators of significant disagreement over the sustainability of growth and margins.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Carvana sold 197,325 retail vehicles, up 38% year over year, and generated record revenue of $7.376 billion, up 52%. Adjusted EBITDA reached $769 million at a margin of 10.4%, while operating income was $680 million. The call reported net income of $513 million and a net margin of 7%, while the provided EDGAR data listed net income of $310 million and gross profit of $1.4 billion.
Retail units increased 38% in fiscal Q2 2026, while revenue rose 52%. The company attributed the difference to gross revenue accounting treatment for certain vehicles purchased from a major retail marketplace partner, higher industry vehicle prices, and a shift toward newer, higher-cost vehicles. Management said the accounting treatment effect will cease to affect annual comparisons beginning in fiscal Q3 2026, bringing revenue growth closer to unit growth.
Carvana expects adjusted EBITDA of between $2.7 billion and $3.0 billion in fiscal 2026, compared with $2.24 billion in fiscal 2025. It also expects a sequential increase in retail units sold during fiscal Q3 2026 compared with Q2. Investors viewed the range as falling short of market expectations, despite fiscal Q2 adjusted EBITDA slightly exceeding the consensus estimate at $769 million versus $766.2 million.
Automated analysis for informational purposes only — not investment advice.
In the Midwest and Northeast, inventory rose 57% and sales grew 54% in fiscal Q2 2026. In the West and Southeast, where less production capacity was added, inventory grew 17% and sales increased 30%. Management explains this by noting that broader selection raises conversion, improves marketing efficiency, shortens delivery distances, and reduces shipping fees, but companywide inventory remained below the required level for several months.
Carvana uses the Sebastian assistant and other AI-powered features to simplify customer answers and the website experience and accelerate product development. According to management, customer-service costs declined annually by 40%, then 30%, then 20%, then 10% during the four consecutive years preceding the July 29, 2026 call. The company did not provide a separate conversion rate for Sebastian, and the operational Roll Call and Leader Hub tools had not been fully implemented across all locations as of that date.
Operational risks include inventory growth lagging sales, EBITDA per unit declining by about $300 annually, and the adjusted EBITDA margin falling to 10.4% from 12.4% in fiscal Q2 2026. Fuel prices, benchmark interest rates, and planned advertising spending also pressure unit economics, while investors viewed fiscal 2026 guidance as below market expectations. At the trading level, investigations involving Mark Walter raised the possibility of a large stake sale, while insiders recorded net sales of $23.5 million over three months, with the caveat that these sales may have been prearranged.
