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Carvana Co. (CVNA)

Consumer Cyclical Out of favour

Carvana is an online-only used car retailer famous for its automated vehicle vending machines and home delivery.

$62.36

Is Carvana Co. a good stock for a UK beginner?

The honest version: Carvana is an online-only used car retailer famous for its automated vehicle vending machines and home delivery.

No rating · no target price · nothing for sale here
Price+112.8%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-6% past year
$62.36
Low $54.46High $97.38
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into Carvana Co.
$2,128+113%

Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$92.80B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
11.09M
Day range: The lowest and highest price the shares traded at during the latest day.
$59.69 – $63.28
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$54.46 – $97.38
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
32.5
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
3.46
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 3.46
Calm
Wild
Bumpier than the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▼ -0% past week · ▼ -6% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Carvana becomes the dominant digital marketplace for used cars nationwide.

The bear case

Competition from traditional dealers and supply chain limits hinder long-term progress.

What does Carvana Co. do?

Carvana lets customers browse, finance, and purchase second-hand cars entirely through their website or app, removing the traditional forecourt experience. The company makes its money by selling used vehicles alongside vehicle financing and warranty products. A key element to keep an eye on is how quickly they can grow their vehicle inventory and sales volumes while managing their debts.

VQGMI
Factor profile

On our factor screen it looks strongest on growth and quality, and weakest on income.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 29Quality: How profitable and financially healthy the company is (higher = stronger). 42Growth: How fast revenue and earnings are growing (higher = faster). 87Momentum: How the share price has been trending recently (higher = stronger recent run). 17Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 16
Quick checks
What's strong
  • Growth screens high (87/100)
  • Rapid revenue and earnings growth
  • High return on equity pointing to efficient use of shareholder funds
  • Recognisable consumer brand with innovative vending machine concept
What to watch
  • Value screens low (29/100)
  • Momentum screens low (17/100)
  • Income screens low (16/100)
  • Vulnerability to shifts in consumer spending on big-ticket goods
  • Fluctuations in the broader second-hand vehicle market

What do Carvana Co.'s numbers mean?

P/E
32.5
This tells us investors are paying £32.50 for every £1 of annual profit the company currently makes.
Gross margin
19.4%
For every pound of cars sold, the company keeps about 19 pence after covering the direct cost of those vehicles.
Revenue growth (yoy)
52.4%
Total sales over the past year grew by over half compared to the previous twelve months, showing rapid top-line expansion.
Beta
3.5
A measure of volatility meaning the share price tends to swing much more wildly than the wider stock market.

How much money does Carvana Co. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$1.84B$3.69B$5.53B$7.38BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
19.4%
Net margin
6.3%
Return on equity
58.8%

Does Carvana Co. pay a dividend?

No - Carvana Co. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.

More in Consumer Cyclical

Booking HoldingsExpedia GroupeBay Inc.Hilton Worldwide Holdings Inc.Yum! Brands, Inc.Las Vegas Sands Corp.Marriott International, Inc.Casey's General Stores, Inc.

What are the scenarios for Carvana Co.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$99$62$40today · $62▲ Bull · $76• Base · $62▼ Bear · $48in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+15% to +30%Stronger than expected quarterly vehicle sales data surprises the market.
Base
-5% to +5%Steady trading in line with current seasonal car buying patterns.
Bear
-15% to -30%Broader economic pressures dampen consumer spending on expensive items like cars.

What are the pros and cons of Carvana Co.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Rapid revenue and earnings growth
  • High return on equity pointing to efficient use of shareholder funds
  • Recognisable consumer brand with innovative vending machine concept
The catch3
  • High share price volatility indicated by a high beta
  • Zero dividend payments for income-focused participants
  • High price-to-book ratio means the shares trade at a large premium to net assets
Key risks3
  • Vulnerability to shifts in consumer spending on big-ticket goods
  • Fluctuations in the broader second-hand vehicle market
  • Sensitivity to interest rates affecting car financing costs
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.