Carvana Co. (CVNA)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Carvana as an online used-car retailer that has scaled rapidly but still sells a commodity-like product. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.4B and net income was $310.0M, a 4.20% margin. In fiscal Q1 2026, revenue was $6.4B and net income was $250.0M. For FY2025, revenue was $20.3B, net income $1.4B, and diluted EPS $8.45; FY2024 revenue was $13.7B with net income $210.0M and diluted EPS $1.59; FY2023 revenue was $10.8B with net income $450.0M and diluted EPS $0.75. That is real growth and a return to profit, which FairStock labels a TURNAROUND. But the business has a narrow margin and limited evidence of a durable moat; scale and logistics may help, yet customers can buy used cars elsewhere. Financial health is mixed: trailing free cash flow is $929.0M, but FCF yield is only 2.1%; debt-to-equity is 1.11, while FairStock reports ROE 58.77%, ROCE 11.70%, Piotroski F-Score 5/9, and Altman Z-Score 4.05. Valuation is the rub. At the 2026-10-13 close of $60.39, FairStock shows P/E 31.95, P/B 10.78, PEG 0.46, EV/EBITDA 335.75, and a Graham Number of $15.43, implying a -291.38% margin of safety. With beta 3.50 and a 52-week range of $56.12-$486.89, I would demand a much larger discount before calling this a Graham-style bargain.

In plain English: Carvana sells used cars mostly online, along with financing and related services. The business has grown quickly and is now profitable, but it uses a lot of debt and earns only a thin profit on each sale. At the recent stock price, it looks expensive compared with its profits and the value of its assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer