The recently observed upswing has shown some signs of exhaustion, which makes for good timing to employ a short strategy with a short term perspective.
Summary
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
● According to Refinitiv, the company's ESG score for its industry is poor.
Strengths
● Over the past four months, analysts' average price target has been revised upwards significantly.
Weaknesses
● The company's earnings growth outlook lacks momentum and is a weakness.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● Low profitability weakens the company.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● The company is highly valued given the cash flows generated by its activity.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
● Over the past twelve months, analysts' opinions have been revised negatively.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
● The company's earnings releases usually do not meet expectations.
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. On the Company's platform, consumers can research and identify a vehicle, inspect it using its 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from their desktop or mobile devices. It also provides automated vehicle valuations for buying vehicles from customers with or without a retail purchase, automated financing, vehicle service contracts (VSC), auto insurance, GAP waiver coverage, limited warranty, and other ancillary products. It offers pick-up and delivery options, including pick-up at its vending machines or hubs, and as soon as same day deliveries, depending on the market. The Company's in-house customer advocates are available to answer customer questions that arise throughout the process.
CARVANA CO. 
