Carvana Number of Shares Shorted vs. Profit Margin

CVNA
 Stock
  

USD 8.07  0.23  2.93%   

For Carvana profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Carvana to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Carvana Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Carvana's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Carvana Co over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current year Price to Sales Ratio is expected to grow to 3.89. The current year Return on Sales is expected to grow to 0.003237. As of December 5, 2022, Consolidated Income is expected to decline to about (309.7 M). In addition to that, Net Income is expected to decline to about (76.6 M).

Carvana Revenues

1.9 Billion

Is Carvana's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Carvana. If investors know Carvana will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Carvana listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.4 B
Quarterly Revenue Growth YOY
(0.027) 
Return On Assets
(0.09) 
Return On Equity
(3.02) 
The market value of Carvana is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana's value that differs from its market value or its book value, called intrinsic value, which is Carvana's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Carvana's market value can be influenced by many factors that don't directly affect Carvana's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Carvana's value and its price as these two are different measures arrived at by different means. Investors typically determine Carvana value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Carvana Profit Margin vs. Number of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Carvana's current stock value. Our valuation model uses many indicators to compare Carvana value to that of its competitors to determine the firm's financial worth.
Carvana Co is rated fourth in number of shares shorted category among related companies. It is rated below average in profit margin category among related companies . Carvana Profit Margin is projected to increase significantly based on the last few years of reporting. The past year's Profit Margin was at -2.84. Comparative valuation analysis is a catch-all model that can be used if you cannot value Carvana by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Carvana's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Carvana's earnings, one of the primary drivers of an investment's value.

Carvana Profit Margin vs. Number of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Carvana 
Shares Shorted 
 = 
Shorted by Public 
by Institutions 
41.32 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Carvana 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
(0.06) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Carvana Profit Margin Comparison

Carvana is currently under evaluation in profit margin category among related companies.

Carvana Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Carvana, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Carvana will eventually generate negative long term returns. The profitability progress is the general direction of Carvana's change in net profit over the period of time. It can combine multiple indicators of Carvana, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Consolidated Income-287 M-309.7 M
Net Income-71 M-76.6 M
Net Income Common Stock-135 M-145.7 M
Net Income to Non Controlling Interests-152 M-164 M
Operating Income-262.8 M-269.7 M
Preferred Dividends Income Statement Impact6.4 M5.5 M
Income Tax Expense900 K894.7 K
Net Income Per Employee-14.3 K-15.5 K

Carvana Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Carvana. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Carvana position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Carvana's important profitability drivers and their relationship over time.

Use Carvana in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Carvana position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Carvana will appreciate offsetting losses from the drop in the long position's value.

Carvana Pair Trading

Carvana Co Pair Trading Analysis

The ability to find closely correlated positions to Carvana could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Carvana when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Carvana - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Carvana Co to buy it.
The correlation of Carvana is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Carvana moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Carvana moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Carvana can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Carvana position

In addition to having Carvana in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Continue to Trending Equities. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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To fully project Carvana's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Carvana at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Carvana's income statement, its balance sheet, and the statement of cash flows.
Potential Carvana investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Carvana investors may work on each financial statement separately, they are all related. The changes in Carvana's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Carvana's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.