CVNACarvana
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.6×).
Operating profit outpaces operating cash flow, watch accruals and working capital.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 37% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CVNA?
Carvana earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 8.9%
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- 0.63×
Cash conversion · 0.61× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +3.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2022 | −17% |
| FY2023 | −0.74% |
| FY2024 | 7.2% |
| FY2025 | 9.3% |
Details›
- Gross margin12 months to Q2 2026
- 19%
- Operating margin12 months to Q2 2026
- 8.9%
- Net margin12 months to Q2 2026
- 6.3%
- Free cash flow margin
- 3.7%
- Revenue, trailing twelve months
- $25.1B
- Free cash flow, trailing twelve months
- $929M
- Net income, trailing twelve months
- $1.57B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Auto & Truck Dealerships
The closest names by size in the same industry