Recent News
On September 30, 2025 Root’s 10‑Q noted expiration of the short‑term tranche of Carvana warrants and recognized a cumulative warrant compensation catch‑up tied to milestone achievement. In October 2025 related SEC disclosures and a Schedule 13D/A indicated Carvana’s reported beneficial ownership and the status of remaining milestone‑based warrants. On November 5, 2025 the company scheduled and issued materials for its third‑quarter shareholder release and conference call.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): DI+ decreased while DI- increased, signaling seller dominance; ADX at 12.51 indicates no established trend, so directional signals reflect short‑term pressure rather than a strong multi‑week trend.
MACD: MACD stands negative at -1.30 and is decreasing, and it sits below the signal line (-0.72), which indicates bearish momentum and no bullish MACD cross to offset near‑term downside risk.
MRO (Momentum/Regression Oscillator): MRO registers 15.0 with a peak‑and‑reversal, which implies the price currently sits above the MRO target and that downside potential increased as momentum rolled over.
RSI: RSI at 44.97 and decreasing points to weakening internal momentum below the 50 midpoint and supports a near‑term negative bias.
Price vs. moving averages and bands: Last close $73.13 sits below the 20‑day ($79.12), 50‑day ($79.42) and 200‑day ($110.43) averages, indicating price remains discounted to recent and longer‑term averages. The close also sits just below the 1× lower Bollinger band ($75.14) and near the 2× lower band ($71.16), suggesting proximity to lower volatility support while volatility and high beta raise the likelihood of whipsaws.
Volatility and liquidity context: 42‑day beta at 3.91 and 52‑week beta 2.00 show elevated sensitivity to market moves; average volumes over 10 and 50 days sit below the 200‑day average, indicating thinner participation on recent moves.
Fundamental Analysis
Profitability and margins: EBIT equals $300,000, producing an EBIT margin of roughly 0.08%. EBIT margin fell about 98.9% QoQ and about 99.3% YoY, a sharp contraction that sits well below the industry peer mean (≈20.34%) and median (≈15.27%). Net income for the period recorded a loss of $5.4 million, and EPS actual was -$0.35 versus an estimate of -$0.55, a positive surprise of about 36.36%.
Revenue and growth: Total revenue reached $387.8 million. Revenue growth shows steep declines on the provided cadence: QoQ change near -86.65% and YoY near -77.56%, indicating recent top‑line momentum slowed materially versus prior periods.
Cash, free cash flow and liquidity: Cash on hand totaled $653.3 million and cash and short‑term investments $1,011.1 million, with operating cash flow $57.6 million and free cash flow $53.7 million. Free cash flow yield equals about 3.80%; free cash flow grew QoQ but shows YoY contraction on the supplied measures. The cash position provides substantial runway relative to total debt of $200.4 million and market capitalization of $1.412 billion.
Leverage and capital structure: Debt to assets equals 12.20% and debt to equity stands at 0.756 (75.6%), which exceeds the industry peer mean and even the reported peer high for debt‑to‑equity, signaling relatively higher leverage on an industry‑peer basis. Interest coverage near 0.057x remains constrained.
Valuation and market multiples: Price/book at 5.33 sits above the industry peer mean and near the peer high, while price/sales at 3.64 sits below the peer mean. Trailing PE reads -267.55x (negative) and forward EPS on file at $0.64 implies a forward metric that the data presents inconsistently (forward PE shown negative in the supplied values). Enterprise value totals $601,873,667 and WMDST values the stock as under‑valued, a conclusion driven by cash reserves and free cash generation despite current margin compression.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 642.5 M |
| Operating Cash Flow | $ 57.6 M | |
| Capital Expenditures | $ -3.90 M | |
| Change In Working Capital | $ 20.2 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 11.9 M | |
| End Period Cash Flow | $ 654.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 387.8 M | |
| Forward Revenue | $ -178.43 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 4.7 M | |
| Depreciation and Amortization | $ 4.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 392.8 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 300.0 K | |
| Operating Income | — | |
| Interest Income | $ 10.5 M | |
| Interest Expense | $ 5.3 M | |
| Net Interest Income | $ -5.30 M | |
| Income Before Tax | $ -5.00 M | |
| Tax Provision | $ 400.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -5.40 M | |
| Net Income From Continuing Operations | $ -5.40 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.55 | |
| EPS Actual | $ -0.35 | |
| EPS Difference | $ 0.20 | |
| EPS Surprise | 36.364 % | |
| Forward EPS | $ 0.64 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.6 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 265.0 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 1.0 B | |
| Cash | $ 653.3 M | |
| Net Receivables | $ 494.8 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 70.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 200.4 M | |
| Total Liabilities | $ 1.4 B | |
| EQUITY | ||
| Total Equity | $ 265.0 M | |
| Retained Earnings | $ -1.65 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.07 | |
| Shares Outstanding | 15.528 M | |
| Revenue Per-Share | $ 24.97 | |
| VALUATION | Market Capitalization | $ 1.4 B |
| Enterprise Value | $ 601.9 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 1.552 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.198 | |
| Asset To Liability | 1.192 | |
| Debt To Capital | 0.431 | |
| Debt To Assets | 0.122 | |
| Debt To Assets QoQ | -3.136 % | |
| Debt To Assets YoY | -36.662 % | |
| Debt To Assets IPRWA | high: 0.141 ROOT: 0.122 median: 0.057 mean: 0.055 low: 0.001 |
|
| Debt To Equity | 0.756 | |
| Debt To Equity QoQ | -7.551 % | |
| Debt To Equity YoY | -54.285 % | |
| Debt To Equity IPRWA | ROOT: 0.756 high: 0.694 mean: 0.225 median: 0.225 low: 0.004 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.33 | |
| Price To Book QoQ | -23.574 % | |
| Price To Book YoY | 49.289 % | |
| Price To Book IPRWA | high: 5.628 ROOT: 5.33 mean: 2.524 median: 2.059 low: 0.343 |
|
| Price To Earnings (P/E) | -267.549 | |
| Price To Earnings QoQ | -358.175 % | |
| Price To Earnings YoY | -934.179 % | |
| Price To Earnings IPRWA | high: 94.63 median: 50.273 mean: 46.184 low: -40.375 ROOT: -267.549 |
|
| PE/G Ratio | 2.096 | |
| Price To Sales (P/S) | 3.643 | |
| Price To Sales QoQ | -18.213 % | |
| Price To Sales YoY | 71.447 % | |
| Price To Sales IPRWA | high: 21.099 median: 6.435 mean: 6.429 ROOT: 3.643 low: 1.44 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -233.109 | |
| Forward PE/G | 1.826 | |
| Forward P/S | 11.322 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -77.284 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.24 | |
| Asset Turnover Ratio QoQ | -0.501 % | |
| Asset Turnover Ratio YoY | 20.09 % | |
| Asset Turnover Ratio IPRWA | ROOT: 0.24 high: 0.206 mean: 0.116 median: 0.092 low: 0.008 |
|
| Receivables Turnover | 0.79 | |
| Receivables Turnover Ratio QoQ | 3.726 % | |
| Receivables Turnover Ratio YoY | 19.167 % | |
| Receivables Turnover Ratio IPRWA | high: 1.533 ROOT: 0.79 mean: 0.712 median: 0.54 low: 0.074 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 115.486 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 115.486 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 730.956 median: 169.083 mean: 166.592 ROOT: 115.486 low: 16.675 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.01 | |
| CapEx To Depreciation | -0.83 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 465.4 M | |
| Net Invested Capital | $ 465.4 M | |
| Invested Capital | $ 465.4 M | |
| Net Tangible Assets | $ 265.0 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 2.091 % | |
| Interest Coverage Ratio | 0.057 | |
| Interest Coverage Ratio QoQ | -98.901 % | |
| Interest Coverage Ratio YoY | -98.091 % | |
| Interest Coverage Ratio IPRWA | high: 189.766 median: 48.471 mean: 39.75 ROOT: 0.057 low: -55.0 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.445 % | |
| Revenue Growth | 1.28 % | |
| Revenue Growth QoQ | -86.65 % | |
| Revenue Growth YoY | -77.564 % | |
| Revenue Growth IPRWA | high: 21.706 % mean: 3.048 % median: 2.305 % ROOT: 1.28 % low: -9.075 % |
|
| Earnings Growth | -127.642 % | |
| Earnings Growth QoQ | -953.621 % | |
| Earnings Growth YoY | -64.506 % | |
| Earnings Growth IPRWA | high: 88.047 % median: 21.547 % mean: 17.594 % low: -70.536 % ROOT: -127.642 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 0.077 % | |
| EBIT Margin QoQ | -98.92 % | |
| EBIT Margin YoY | -99.316 % | |
| EBIT Margin IPRWA | high: 42.337 % mean: 20.344 % median: 15.272 % ROOT: 0.077 % low: -7.862 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 53.7 M | |
| Free Cash Flow Yield | 3.802 % | |
| Free Cash Flow Yield QoQ | 35.062 % | |
| Free Cash Flow Yield YoY | -47.457 % | |
| Free Cash Flow Yield IPRWA | high: 16.743 % mean: 4.656 % ROOT: 3.802 % median: 3.756 % low: -10.393 % |
|
| Free Cash Growth | 11.875 % | |
| Free Cash Growth QoQ | -87.306 % | |
| Free Cash Growth YoY | -155.14 % | |
| Free Cash Growth IPRWA | high: 321.45 % mean: 49.361 % median: 30.244 % ROOT: 11.875 % low: -213.064 % |
|
| Free Cash To Net Income | -9.944 | |
| Cash Flow Margin | -1.599 % | |
| Cash Flow To Earnings | 1.148 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.334 % | |
| Return On Assets QoQ | -124.081 % | |
| Return On Assets YoY | -122.401 % | |
| Return On Assets IPRWA | high: 5.668 % median: 2.207 % mean: 1.879 % ROOT: -0.334 % low: -2.111 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | -0.02 | |
| Return On Equity QoQ | -122.649 % | |
| Return On Equity YoY | -116.26 % | |
| Return On Equity IPRWA | high: 0.147 median: 0.073 mean: 0.067 ROOT: -0.02 low: -0.073 |
|
| DuPont ROE | -2.119 % | |
| Return On Invested Capital (ROIC) | 0.051 % | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | -101.011 % | |
| Return On Invested Capital IPRWA | high: 11.38 % median: 6.307 % mean: 5.653 % ROOT: 0.051 % low: -2.951 % |
|