Recent News
In September Carvana acquired the Park Cities Chrysler‑Dodge‑Jeep‑Ram dealership in Dallas as a second test of franchised new-car retailing, extending earlier experiments in Casa Grande, Arizona, and expanding ADESA-related capabilities in the Dallas region.
Technical Analysis
ADX at 20.8 signals an emerging trend strength that fails to resolve directionally; directional indicators show bias toward sellers: DI+ peaked and reversed while DI‑ dipped and reversed, a configuration that reads as bearish pressure on near-term price action.
MACD stands negative at -8.85 with a peak‑and‑reversal pattern and sits below its signal line (-5.84), indicating bearish momentum that aligns with the directional indicators and increases the probability of further short‑term weakness.
MRO sits positive at 5.55 with a peak‑and‑reversal pattern, which means price currently sits above the WMDST target and carries modest downside potential as that oscillator suggests mean reversion toward valuation-based targets.
RSI at 47.03 and showing a peak‑and‑reversal pattern places the oscillator just under neutral and supports a near‑term bias toward lower price action rather than sustained strength.
Price relationships reinforce the mixed, short‑term bias: the close at $306.54 trades below short‑term averages (20‑day $341.17, 12‑day EMA $338.37, 26‑day EMA $348.37 and 50‑day $362.16) while sitting above the 200‑day average ($297.37). High 42‑day beta (3.03) and a 52‑week beta (2.25) point to amplified moves; expect elevated volatility while price negotiates resistance near short‑term averages and support near the 200‑day area.
Fundamental Analysis
Recent quarterly results show material top‑line and profitability momentum: the company reported record third‑quarter revenue of $5.65 billion and stronger adjusted EBITDA, with management guiding retail units sold above 150,000 for Q4 and reiterating full‑year adjusted EBITDA targets at the high end of the previous $2.0–$2.2 billion range.
WMDST’s dataset shows total revenue at $4.84 billion for the period ending 2025-06-30 and YoY revenue growth of 26.00%, while QoQ revenue growth declined by 25.61%, reflecting seasonality and period timing differences. Gross margin stands at 21.98%, below the industry peer mean of 47.33% and the industry peer median of 50.81%, which constrains valuation support despite accelerating sales.
Operating performance improved: operating margin reached 10.56% and EBIT margin measured 9.32%, both up materially year‑over‑year (EBIT margin YoY +43.13%) though EBIT margin fell QoQ by 23.28%. The EBIT margin sits below the industry peer mean (16.40%) and median (17.54%), indicating room for margin convergence if scale and monetization trends continue.
Profitability and cash flow show contrasts. Net income registers at $183.0 million, while trailing free cash flow remains negative at -$2.0 million and operating cash flow stayed low at $29.0 million; free cash flow growth shows significant deterioration. WMDST’s operating and cash metrics therefore highlight improving accounting profits but constrained cash conversion.
Leverage and liquidity display mixed signals: cash and short‑term investments total $2.323 billion and current ratio equals 4.00, above the industry peer mean of 1.34, providing meaningful near‑term liquidity. At the same time debt‑to‑assets sits at 65.23% and debt‑to‑EBITDA at 11.77x, reflecting materially higher leverage than industry peer means and amplifying downside risk if operating margins falter.
Market multiples remain elevated: price‑to‑earnings at 244.21 sits above the industry peer mean of 70.73 and above the industry peer median of 8.04 but below the peer high of 350.11; price‑to‑book at 26.54 sits above the industry peer mean of 4.91 and near the peer high of 28.20. These multiples, combined with negative free cash flow and high leverage, drive WMDST’s valuation conclusion.
WMDST values the stock as over‑valued given elevated market multiples relative to earnings quality, negative free cash flow growth, and high leverage despite clear revenue and adjusted‑EBITDA momentum.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 1.9 B |
| Operating Cash Flow | $ 29.0 M | |
| Capital Expenditures | $ -31.00 M | |
| Change In Working Capital | $ -415.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 26.0 M | |
| End Period Cash Flow | $ 1.9 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.8 B | |
| Forward Revenue | $ 530.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 3.8 B | |
| Depreciation | $ 68.0 M | |
| Depreciation and Amortization | $ 68.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.1 B | |
| EBITDA | $ 519.0 M | |
| EBIT | $ 451.0 M | |
| Operating Income | $ 511.0 M | |
| Interest Income | — | |
| Interest Expense | $ 143.0 M | |
| Net Interest Income | $ -143.00 M | |
| Income Before Tax | $ 308.0 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ 183.0 M | |
| Net Income From Continuing Operations | $ 308.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.32 | |
| EPS Actual | $ 1.03 | |
| EPS Difference | $ -0.29 | |
| EPS Surprise | -21.97 % | |
| Forward EPS | $ 0.59 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 9.4 B | |
| Intangible Assets | $ 34.0 M | |
| Net Tangible Assets | $ 1.7 B | |
| Total Current Assets | $ 5.7 B | |
| Cash and Short-Term Investments | $ 2.3 B | |
| Cash | $ 1.9 B | |
| Net Receivables | $ 320.0 M | |
| Inventory | $ 2.0 B | |
| Long-Term Investments | $ 507.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 257.0 M | |
| Short-Term Debt | $ 384.0 M | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 3.9 B | |
| Total Debt | $ 6.1 B | |
| Total Liabilities | $ 7.2 B | |
| EQUITY | ||
| Total Equity | $ 1.7 B | |
| Retained Earnings | $ -1.02 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 12.67 | |
| Shares Outstanding | 136.498 M | |
| Revenue Per-Share | $ 35.46 | |
| VALUATION | Market Capitalization | $ 45.9 B |
| Enterprise Value | $ 49.7 B | |
| Enterprise Multiple | 95.752 | |
| Enterprise Multiple QoQ | 69.11 % | |
| Enterprise Multiple YoY | 108.089 % | |
| Enterprise Multiple IPRWA | high: 309.882 CVNA: 95.752 mean: 55.964 median: 39.25 low: -118.258 |
|
| EV/R | 10.268 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.414 | |
| Asset To Liability | 1.292 | |
| Debt To Capital | 0.779 | |
| Debt To Assets | 0.652 | |
| Debt To Assets QoQ | -4.175 % | |
| Debt To Assets YoY | 1600.782 % | |
| Debt To Assets IPRWA | high: 1.145 CVNA: 0.652 mean: 0.19 median: 0.15 low: 0.007 |
|
| Debt To Equity | 3.531 | |
| Debt To Equity QoQ | -12.114 % | |
| Debt To Equity YoY | 575.429 % | |
| Debt To Equity IPRWA | CVNA: 3.531 high: 2.689 mean: 0.329 median: 0.229 low: -1.864 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 26.537 | |
| Price To Book QoQ | 35.172 % | |
| Price To Book YoY | -0.149 % | |
| Price To Book IPRWA | high: 28.203 CVNA: 26.537 mean: 4.907 median: 2.254 low: -5.107 |
|
| Price To Earnings (P/E) | 244.206 | |
| Price To Earnings QoQ | 67.847 % | |
| Price To Earnings YoY | -70.394 % | |
| Price To Earnings IPRWA | high: 350.107 CVNA: 244.206 mean: 70.727 median: 8.04 low: -173.221 |
|
| PE/G Ratio | -14.945 | |
| Price To Sales (P/S) | 9.485 | |
| Price To Sales QoQ | 35.952 % | |
| Price To Sales YoY | 131.377 % | |
| Price To Sales IPRWA | high: 34.793 mean: 11.703 CVNA: 9.485 median: 9.226 low: 0.018 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 483.579 | |
| Forward PE/G | -29.595 | |
| Forward P/S | 86.583 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.853 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.531 | |
| Asset Turnover Ratio QoQ | 8.839 % | |
| Asset Turnover Ratio YoY | 10.108 % | |
| Asset Turnover Ratio IPRWA | high: 1.289 CVNA: 0.531 mean: 0.212 median: 0.21 low: 0.059 |
|
| Receivables Turnover | 14.049 | |
| Receivables Turnover Ratio QoQ | 11.545 % | |
| Receivables Turnover Ratio YoY | 44.201 % | |
| Receivables Turnover Ratio IPRWA | high: 62.149 CVNA: 14.049 mean: 6.823 median: 2.805 low: 0.806 |
|
| Inventory Turnover | 2.142 | |
| Inventory Turnover Ratio QoQ | 0.865 % | |
| Inventory Turnover Ratio YoY | -5.308 % | |
| Inventory Turnover Ratio IPRWA | high: 9.333 mean: 2.499 CVNA: 2.142 median: 1.62 low: 0.416 |
|
| Days Sales Outstanding (DSO) | 6.495 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 48.832 | |
| Cash Conversion Cycle Days QoQ | -4.284 % | |
| Cash Conversion Cycle Days YoY | 12.83 % | |
| Cash Conversion Cycle Days IPRWA | high: 164.106 CVNA: 48.832 mean: -32.326 median: -58.827 low: -181.586 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.137 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.456 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.1 B | |
| Net Invested Capital | $ 7.4 B | |
| Invested Capital | $ 7.4 B | |
| Net Tangible Assets | $ 1.7 B | |
| Net Working Capital | $ 4.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.639 | |
| Current Ratio | 4.004 | |
| Current Ratio QoQ | 4.979 % | |
| Current Ratio YoY | 28.73 % | |
| Current Ratio IPRWA | high: 4.326 CVNA: 4.004 mean: 1.344 median: 1.222 low: 0.145 |
|
| Quick Ratio | 2.576 | |
| Quick Ratio QoQ | -4.522 % | |
| Quick Ratio YoY | 27.651 % | |
| Quick Ratio IPRWA | CVNA: 2.576 high: 2.548 median: 0.794 mean: 0.784 low: 0.085 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 11.771 | |
| Cost Of Debt | 2.342 % | |
| Interest Coverage Ratio | 3.154 | |
| Interest Coverage Ratio QoQ | -14.711 % | |
| Interest Coverage Ratio YoY | 145.772 % | |
| Interest Coverage Ratio IPRWA | high: 60.923 mean: 27.457 median: 14.556 CVNA: 3.154 low: -31.782 |
|
| Operating Cash Flow Ratio | -0.118 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 6.368 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.497 % | |
| Revenue Growth | 14.367 % | |
| Revenue Growth QoQ | -25.606 % | |
| Revenue Growth YoY | 26.004 % | |
| Revenue Growth IPRWA | high: 42.755 % CVNA: 14.367 % mean: 8.928 % median: 7.325 % low: -40.858 % |
|
| Earnings Growth | -16.34 % | |
| Earnings Growth QoQ | -109.632 % | |
| Earnings Growth YoY | -58.242 % | |
| Earnings Growth IPRWA | high: 123.297 % mean: 22.148 % median: 17.812 % CVNA: -16.34 % low: -197.753 % |
|
| MARGINS | ||
| Gross Margin | 21.983 % | |
| Gross Margin QoQ | 0.141 % | |
| Gross Margin YoY | 4.841 % | |
| Gross Margin IPRWA | high: 91.03 % median: 50.812 % mean: 47.328 % CVNA: 21.983 % low: 5.196 % |
|
| EBIT Margin | 9.318 % | |
| EBIT Margin QoQ | -23.283 % | |
| EBIT Margin YoY | 43.134 % | |
| EBIT Margin IPRWA | high: 55.723 % median: 17.538 % mean: 16.404 % CVNA: 9.318 % low: -29.663 % |
|
| Return On Sales (ROS) | 10.558 % | |
| Return On Sales QoQ | -13.074 % | |
| Return On Sales YoY | 62.181 % | |
| Return On Sales IPRWA | high: 33.098 % median: 13.457 % mean: 13.435 % CVNA: 10.558 % low: -36.203 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -2.00 M | |
| Free Cash Flow Yield | 0.0 % | |
| Free Cash Flow Yield QoQ | -100.0 % | |
| Free Cash Flow Yield YoY | -100.0 % | |
| Free Cash Flow Yield IPRWA | high: 21.449 % median: 0.905 % mean: 0.856 % CVNA: 0.0 % low: -30.781 % |
|
| Free Cash Growth | -100.976 % | |
| Free Cash Growth QoQ | -121.51 % | |
| Free Cash Growth YoY | -133.659 % | |
| Free Cash Growth IPRWA | high: 246.509 % mean: -89.556 % CVNA: -100.976 % median: -124.178 % low: -578.288 % |
|
| Free Cash To Net Income | -0.011 | |
| Cash Flow Margin | -3.45 % | |
| Cash Flow To Earnings | -0.913 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 2.006 % | |
| Return On Assets QoQ | -19.373 % | |
| Return On Assets YoY | 689.764 % | |
| Return On Assets IPRWA | high: 6.039 % mean: 2.516 % median: 2.227 % CVNA: 2.006 % low: -10.756 % |
|
| Return On Capital Employed (ROCE) | 5.674 % | |
| Return On Equity (ROE) | 0.106 | |
| Return On Equity QoQ | -26.347 % | |
| Return On Equity YoY | 209.117 % | |
| Return On Equity IPRWA | high: 0.459 CVNA: 0.106 mean: 0.056 median: 0.035 low: -0.434 |
|
| DuPont ROE | 11.317 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |