Recent News
On Dec. 9, 2025 Evercore ISI maintained coverage of Carvana with an In‑Line rating; on Dec. 12 Citigroup kept a Buy rating and coverage; late‑December through January filings and market data showed elevated options and gamma activity around CVNA while short interest measured about 13.0% as of Dec. 31, 2025; several market commentaries in early 2026 noted heavy options flow and analyst price‑target dispersion.
Technical Analysis
Directional strength (ADX 40.07) registers as very strong, signaling that recent price moves carry conviction rather than random noise; strength raises the potential magnitude of any continuation move relative to prior ranges.
Directional lines conflict: DI+ at 12.06 shows a peak‑and‑reversal (bearish), while DI‑ at 29.35 is decreasing (bullish). The juxtaposition implies recent bullish exhaustion on upside attempts even as downside pressure has eased; price sensitivity to news or momentum flips therefore increases.
MACD sits at -21.66 with a dip‑and‑reversal and currently sits just above the signal line (-22.00); that configuration constitutes a bullish momentum signal and suggests short‑term momentum has started to turn positive despite negative absolute values.
MRO equals -12.97 (negative), indicating price sits below the WMDST target and implies upward potential pressure toward that target; the magnitude suggests a meaningful, not marginal, opportunity for upward convergence if momentum holds.
RSI at 44.74 and declining signals weak near‑term internal momentum; combined with the MACD reversal this creates a tactical tug: momentum may lift price toward moving averages, but internal strength remains limited until RSI stabilizes above neutral.
Price sits at $328.26, below the 20‑day average ($331.40), the 200‑day average ($365.71) and well below the 50‑day average ($399.41); the 12‑day EMA trend and the 20‑day average both decline, implying short‑term price pressure despite the MACD reversal. Bollinger band context shows the 1x upper band at $345.94 and 1x lower at $316.87, framing a near‑term trading band.
Fundamental Analysis
Profitability: EBIT registers negative $1,734,000,000 and an EBIT margin of -30.95%, well below the industry peer mean 13.38% and median 12.79%; QoQ and YoY margin change figures indicate material deterioration on a period basis (-555.12% QoQ; -461.08% YoY as reported), underscoring continued legacy cost or non‑operating impacts on operating profitability.
Net income returned positive $857,000,000 and operating income $424,000,000, creating a mixed earnings profile versus operating losses at the EBIT line; EPS actual $4.22 versus estimate $1.18 produced an EPS surprise of $3.04 (257.63% surprise), signaling a significant beat on per‑share metrics for the reported period.
Liquidity and cash flow: Cash stands at $2,327,000,000 with cash and short‑term investments of $2,813,000,000 and a cash ratio of 1.85 and current ratio 4.31, indicating robust near‑term liquidity. Operating cash flow $430,000,000 and free cash flow $379,000,000 produce a free cash flow yield of 0.66%, implying modest cash generation relative to market cap.
Leverage and capital structure: Total debt equals $5,521,000,000 with debt‑to‑equity 1.60 and debt‑to‑assets 41.82%; interest coverage sits negative, reflecting periods of non‑operating charges or timing differences that compress coverage metrics. Net debt approximately $2,788,000,000 versus enterprise value yields a complex leverage picture given negative EBITDA.
Efficiency and returns: Return on equity equals 24.91%, above the industry peer mean 3.30% and slightly above the peer high 24.35%, while return on assets equals 7.44%, above the industry peer mean 2.70%; asset turnover measures 0.486, below the industry peer mean 0.278 when expressed as a simple ratio, suggesting asset use delivers reasonable revenue but at lower turnover than faster‑turning peers.
Growth and margins: Revenue totaled $5,603,000,000 with a reported revenue growth figure of -0.78% and period growth metrics showing QoQ and YoY declines; gross margin 18.76% sits below the industry peer mean 49.12%, signaling margin compression versus peers. Free cash growth shows positive momentum (23.45% year over year by the provided figure), but earnings growth and QoQ comp metrics show mixed directionality.
Valuation: WMDST values the stock as over‑valued. Market multiples show a trailing P/E near 96.13x, forward P/E ~146.79x, P/B at 16.77x, PS around 10.30x and an enterprise multiple negative due to reported EBITDA; these multiples reflect a substantial premium to normalized expectations and contribute to the WMDST over‑valued assessment.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-18 |
| NEXT REPORT DATE: | 2026-05-20 |
| CASH FLOW | Begin Period Cash Flow | $ 2.2 B |
| Operating Cash Flow | $ 430.0 M | |
| Capital Expenditures | $ -51.00 M | |
| Change In Working Capital | $ 60.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 208.0 M | |
| End Period Cash Flow | $ 2.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.6 B | |
| Forward Revenue | $ 619.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 4.6 B | |
| Depreciation | $ 69.0 M | |
| Depreciation and Amortization | $ 69.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 5.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.1 B | |
| EBITDA | $ -1.67 B | |
| EBIT | $ -1.73 B | |
| Operating Income | $ 424.0 M | |
| Interest Income | — | |
| Interest Expense | $ 98.0 M | |
| Net Interest Income | $ -98.00 M | |
| Income Before Tax | $ -1.83 B | |
| Tax Provision | $ -2.78 B | |
| Tax Rate | 21.0 % | |
| Net Income | $ 857.0 M | |
| Net Income From Continuing Operations | $ 951.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.18 | |
| EPS Actual | $ 4.22 | |
| EPS Difference | $ 3.04 | |
| EPS Surprise | 257.627 % | |
| Forward EPS | $ 2.67 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.2 B | |
| Intangible Assets | $ 57.0 M | |
| Net Tangible Assets | $ 3.4 B | |
| Total Current Assets | $ 6.5 B | |
| Cash and Short-Term Investments | $ 2.8 B | |
| Cash | $ 2.3 B | |
| Net Receivables | $ 245.0 M | |
| Inventory | $ 2.4 B | |
| Long-Term Investments | $ 274.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 236.0 M | |
| Short-Term Debt | $ 285.0 M | |
| Total Current Liabilities | $ 1.5 B | |
| Net Debt | $ 2.8 B | |
| Total Debt | $ 5.5 B | |
| Total Liabilities | $ 9.0 B | |
| EQUITY | ||
| Total Equity | $ 3.4 B | |
| Retained Earnings | $ -9.00 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.19 | |
| Shares Outstanding | 142.230 M | |
| Revenue Per-Share | $ 39.39 | |
| VALUATION | Market Capitalization | $ 57.7 B |
| Enterprise Value | $ 60.4 B | |
| Enterprise Multiple | -36.28 | |
| Enterprise Multiple QoQ | -130.781 % | |
| Enterprise Multiple YoY | -146.321 % | |
| Enterprise Multiple IPRWA | high: 218.425 mean: 63.055 median: 54.381 CVNA: -36.28 low: -170.05 |
|
| EV/R | 10.781 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.836 | |
| Asset To Liability | 1.467 | |
| Debt To Capital | 0.616 | |
| Debt To Assets | 0.418 | |
| Debt To Assets QoQ | -26.479 % | |
| Debt To Assets YoY | 843.66 % | |
| Debt To Assets IPRWA | high: 1.249 CVNA: 0.418 mean: 0.224 median: 0.187 low: 0.007 |
|
| Debt To Equity | 1.604 | |
| Debt To Equity QoQ | -34.762 % | |
| Debt To Equity YoY | 437.676 % | |
| Debt To Equity IPRWA | high: 4.996 CVNA: 1.604 median: 0.372 mean: 0.225 low: -5.764 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 16.768 | |
| Price To Book QoQ | -23.487 % | |
| Price To Book YoY | -32.737 % | |
| Price To Book IPRWA | high: 24.873 CVNA: 16.768 mean: 6.409 median: 6.112 low: -4.953 |
|
| Price To Earnings (P/E) | 96.129 | |
| Price To Earnings QoQ | -72.012 % | |
| Price To Earnings YoY | -77.159 % | |
| Price To Earnings IPRWA | high: 224.995 mean: 116.487 median: 103.157 CVNA: 96.129 low: -221.643 |
|
| PE/G Ratio | 0.31 | |
| Price To Sales (P/S) | 10.298 | |
| Price To Sales QoQ | 16.431 % | |
| Price To Sales YoY | 16.286 % | |
| Price To Sales IPRWA | high: 26.155 mean: 12.665 median: 11.775 CVNA: 10.298 low: 0.384 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 146.791 | |
| Forward PE/G | 0.474 | |
| Forward P/S | 94.056 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 707.88 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.486 | |
| Asset Turnover Ratio QoQ | -17.284 % | |
| Asset Turnover Ratio YoY | 8.619 % | |
| Asset Turnover Ratio IPRWA | high: 1.018 CVNA: 0.486 mean: 0.278 median: 0.276 low: 0.143 |
|
| Receivables Turnover | 18.771 | |
| Receivables Turnover Ratio QoQ | 11.686 % | |
| Receivables Turnover Ratio YoY | 76.222 % | |
| Receivables Turnover Ratio IPRWA | high: 25.571 CVNA: 18.771 mean: 3.637 median: 3.311 low: 0.82 |
|
| Inventory Turnover | 1.927 | |
| Inventory Turnover Ratio QoQ | -7.068 % | |
| Inventory Turnover Ratio YoY | 0.824 % | |
| Inventory Turnover Ratio IPRWA | high: 2.961 median: 2.755 mean: 2.749 CVNA: 1.927 low: 0.383 |
|
| Days Sales Outstanding (DSO) | 4.861 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 47.424 | |
| Cash Conversion Cycle Days QoQ | -7.44 % | |
| Cash Conversion Cycle Days YoY | -0.687 % | |
| Cash Conversion Cycle Days IPRWA | high: 152.367 CVNA: 47.424 mean: -40.762 median: -48.654 low: -234.398 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.114 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -0.739 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.3 B | |
| Net Invested Capital | $ 8.6 B | |
| Invested Capital | $ 8.6 B | |
| Net Tangible Assets | $ 3.4 B | |
| Net Working Capital | $ 5.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.852 | |
| Current Ratio | 4.311 | |
| Current Ratio QoQ | 6.529 % | |
| Current Ratio YoY | 18.477 % | |
| Current Ratio IPRWA | CVNA: 4.311 high: 2.807 mean: 1.081 median: 1.051 low: 0.732 |
|
| Quick Ratio | 2.726 | |
| Quick Ratio QoQ | 6.864 % | |
| Quick Ratio YoY | 11.854 % | |
| Quick Ratio IPRWA | CVNA: 2.726 high: 2.349 mean: 0.875 median: 0.875 low: 0.431 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -3.316 | |
| Cost Of Debt | 1.392 % | |
| Interest Coverage Ratio | -17.694 | |
| Interest Coverage Ratio QoQ | -675.973 % | |
| Interest Coverage Ratio YoY | -961.414 % | |
| Interest Coverage Ratio IPRWA | high: 40.183 median: 40.183 mean: 35.475 CVNA: -17.694 low: -19.834 |
|
| Operating Cash Flow Ratio | 0.583 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 5.344 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 33.979 % | |
| Revenue Growth | -0.779 % | |
| Revenue Growth QoQ | -104.672 % | |
| Revenue Growth YoY | -73.638 % | |
| Revenue Growth IPRWA | high: 34.542 % median: 18.437 % mean: 14.683 % CVNA: -0.779 % low: -40.64 % |
|
| Earnings Growth | 309.709 % | |
| Earnings Growth QoQ | -1685.73 % | |
| Earnings Growth YoY | -2577.672 % | |
| Earnings Growth IPRWA | CVNA: 309.709 % high: 89.933 % mean: -45.729 % median: -66.667 % low: -450.0 % |
|
| MARGINS | ||
| Gross Margin | 18.758 % | |
| Gross Margin QoQ | -7.728 % | |
| Gross Margin YoY | -12.798 % | |
| Gross Margin IPRWA | high: 90.245 % mean: 49.123 % median: 48.469 % low: 23.256 % CVNA: 18.758 % |
|
| EBIT Margin | -30.948 % | |
| EBIT Margin QoQ | -555.118 % | |
| EBIT Margin YoY | -461.078 % | |
| EBIT Margin IPRWA | high: 33.265 % mean: 13.379 % median: 12.786 % low: -25.885 % CVNA: -30.948 % |
|
| Return On Sales (ROS) | 7.567 % | |
| Return On Sales QoQ | -22.588 % | |
| Return On Sales YoY | -11.714 % | |
| Return On Sales IPRWA | high: 31.974 % mean: 12.419 % median: 11.705 % CVNA: 7.567 % low: -34.176 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 379.0 M | |
| Free Cash Flow Yield | 0.657 % | |
| Free Cash Flow Yield QoQ | 6.829 % | |
| Free Cash Flow Yield YoY | 471.304 % | |
| Free Cash Flow Yield IPRWA | high: 5.661 % CVNA: 0.657 % mean: 0.606 % median: 0.594 % low: -4.818 % |
|
| Free Cash Growth | 23.453 % | |
| Free Cash Growth QoQ | -100.152 % | |
| Free Cash Growth YoY | -125.936 % | |
| Free Cash Growth IPRWA | high: 210.541 % CVNA: 23.453 % median: -37.132 % mean: -38.546 % low: -396.502 % |
|
| Free Cash To Net Income | 0.442 | |
| Cash Flow Margin | 15.813 % | |
| Cash Flow To Earnings | 1.034 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 7.435 % | |
| Return On Assets QoQ | 373.265 % | |
| Return On Assets YoY | 645.737 % | |
| Return On Assets IPRWA | high: 8.14 % CVNA: 7.435 % median: 2.742 % mean: 2.695 % low: -11.211 % |
|
| Return On Capital Employed (ROCE) | -14.843 % | |
| Return On Equity (ROE) | 0.249 | |
| Return On Equity QoQ | 275.883 % | |
| Return On Equity YoY | 297.225 % | |
| Return On Equity IPRWA | CVNA: 0.249 high: 0.244 median: 0.052 mean: 0.033 low: -0.624 |
|
| DuPont ROE | 29.965 % | |
| Return On Invested Capital (ROIC) | -16.011 % | |
| Return On Invested Capital QoQ | -494.846 % | |
| Return On Invested Capital YoY | 20.266 % | |
| Return On Invested Capital IPRWA | high: 13.791 % mean: 4.861 % median: 4.659 % CVNA: -16.011 % low: -25.248 % |
|