Carvana (CVNA)
NYSEConsumer DiscretionaryAuto & Truck DealershipsSnapshot 2026-07-07
$67.48-4.12%
Close 2026-07-07 · 1-day change
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Carvana is growing retail units sold by 40% year over year. It expands new car sales and delivery services to boost sales further. Profit margins remain near 10%, showing ongoing profitability. The company trades cheaply versus peers with a PE of 13.4.
Carvana's profit margin declined from 11.5% to 10.4%. The recent sharp stock selloff shows investor concern. Expansion into new vehicles and capacity may pressure margins and cash flow. Elevated risk and fragile quality raise doubts about durable growth.
The market expects about 34% revenue growth next year and values Carvana below the Street median price target. Our fair value is 35% below the Street median, reflecting skepticism on margin and growth durability.
Breaks if: adjusted EBITDA margin falls below 8% next year
Carvana aims to achieve record Adjusted EBITDA, demonstrating profitability.
Stated in 6 of last 6 quarters. Adjusted EBITDA margin decreased from 11.5% in 2025-Q4 to 10.4% in 2026-Q1. Despite the decrease, Carvana continues to focus on achieving record profitability, though progress is limited this quarter.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Adjusted EBITDA margin was 10.4%, a decrease from 11.5%.”
“Adjusted EBITDA margin was 9.1%, a decrease from 10.1%.”
“Adjusted EBITDA of $2.237 billion, Adjusted EBITDA margin of 11.0%.”
“Adjusted EBITDA of $2.237 billion, Adjusted EBITDA margin of 11.0%.”
“Adjusted EBITDA of $2.237 billion, Adjusted EBITDA margin of 11.0%.”
“Adjusted EBITDA of $2.237 billion, Adjusted EBITDA margin of 11.0%.”
Breaks if: no meaningful capacity expansion or delays reported next year
Carvana plans to expand production capacity to support future growth.
Breaks if: retail units sold growth falls below 20% YoY next year
Carvana aims to significantly grow retail units sold, achieving record sales.
Stated in 6 of last 6 quarters. Retail units sold increased from 596,641 in 2025-Q1 to 187,393 in 2026-Q1, marking a 40% growth. The trajectory shows consistent growth, aligning with management's stated priority.
“Retail units sold totaled 187,393, an increase of 40%.”
“Retail units sold totaled 163,522, an increase of 43%.”
“Retail units sold totaled 180,293, an increase of 43%.”
“Retail units sold totaled 596,641, an increase of 43%.”
“Retail units sold totaled 596,641, an increase of 43%.”
“Retail units sold totaled 596,641, an increase of 43%.”
Breaks if: PE ratio rises above 20 without earnings growth