(ACVA) ACV Auctions - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NYSE (USA) | Market Cap: 1.039m USD | Total Return: -59.7% in 12m
Avg Turnover: 20.1M
Qual. Beats: 1
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
High Debt/EBITDA (20.7) with thin interest coverage (-4.9)
Interest Coverage Ratio -4.9 is critical
Altman Z'' -1.17 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
ACV Auctions Inc. (ACVA) operates a digital business-to-business marketplace designed to facilitate wholesale used vehicle transactions between dealerships. The platform integrates real-time auctions with a suite of ancillary services, including short-term inventory financing (ACV Capital), logistics (ACV Transportation), and post-sale assurance (Go Green) to mitigate defect risks. By digitizing the traditional physical auction model, the company aims to reduce the information asymmetry typically found in wholesale automotive trade.
The company also provides data-driven tools such as the True360 report and ACV MAX inventory management software to assist dealers in pricing and valuation. In the wholesale automotive sector, digital marketplaces are increasingly replacing physical auction sites due to lower overhead costs and broader geographic reach for buyers. ACVA further supports commercial partners like fleet and rental companies through remarketing centers that offer vehicle reconditioning and storage.
Investors can further evaluate these operational segments and financial trends by reviewing the detailed metrics available on ValueRay. ACV Auctions is headquartered in Buffalo, New York, and has expanded its technological offerings to include virtual vehicle lifts and proprietary inspection devices since its incorporation in 2014.
- Marketplace transaction volume growth drives core revenue and gross merchandise value
- Dealer adoption of inventory financing and transport services improves take rates
- Used vehicle price volatility impacts dealer inventory turnover and auction demand
- Commercial consignor expansion diversifies supply beyond traditional dealer-to-dealer trade-ins
- Investment in automated inspection technology determines long-term operating margin scalability
| Net Income: -62.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.01 > 1.0 |
| NWC/Revenue: 33.79% < 20% (prev 37.50%; Δ -3.71% < -1%) |
| CFO/TA 0.07 > 3% & CFO 88.1m > Net Income -62.2m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (173.4m) vs 12m ago 2.98% < -2% |
| Gross Margin: 63.57% > 18% (prev 0.55%; Δ 6.30k% > 0.5%) |
| Asset Turnover: 65.43% > 50% (prev 58.50%; Δ 6.92% > 0%) |
| Interest Coverage Ratio: -4.93 > 6 (EBITDA TTM -6.77m / Interest Expense TTM 10.5m) |
| A: 0.21 (Total Current Assets 824.3m - Total Current Liabilities 560.4m) / Total Assets 1.24b |
| B: -0.47 (Retained Earnings -579.3m / Total Assets 1.24b) |
| C: -0.04 (EBIT TTM -51.9m / Avg Total Assets 1.19b) |
| D: -0.72 (Book Value of Equity -578.9m / Total Liabilities 804.5m) |
| Altman-Z'' = -1.17 = CCC |
| DSRI: 0.58 (Receivables 268.9m/400.4m, Revenue 781.1m/674.2m) |
| GMI: 0.86 (GM 63.57% / 54.81%) |
| AQI: 0.97 (AQ_t 0.32 / AQ_t-1 0.33) |
| SGI: 1.16 (Revenue 781.1m / 674.2m) |
| TATA: -0.12 (NI -62.2m - CFO 88.1m) / TA 1.24b) |
| Beneish M = -3.53 (Cap -4..+1) = AAA |
As of May 31, 2026, the stock is trading at USD 6.57 with a total of 3,347,147 shares traded.
Over the past week, the price has changed by +11.36%,
over one month by +25.86%,
over three months by +35.19% and
over the past year by -59.67%.
ACV Auctions has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy ACVA.
- StrongBuy: 5
- Buy: 7
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9.2 | 40.3% |
P/E Forward = 29.7619
P/S = 1.3299
P/B = 2.4106
Revenue TTM = 781.1m USD
EBIT TTM = -51.9m USD
EBITDA TTM = -6.77m USD
Long Term Debt = 200.0m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 201.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 1.17m
Net Debt = -139.8m USD (calculated: Debt 201.2m - CCE 341.0m)
Enterprise Value = 899.0m USD (1.04b + Debt 201.2m - CCE 341.0m)
Interest Coverage Ratio = -4.93 (Ebit TTM -51.9m / Interest Expense TTM 10.5m)
EV/FCF = 12.90x (Enterprise Value 899.0m / FCF TTM 69.7m)
FCF Yield = 7.75% (FCF TTM 69.7m / Enterprise Value 899.0m)
FCF Margin = 8.92% (FCF TTM 69.7m / Revenue TTM 781.1m)
Net Margin = -7.97% (Net Income TTM -62.2m / Revenue TTM 781.1m)
Gross Margin = 63.57% ((Revenue TTM 781.1m - Cost of Revenue TTM 284.6m) / Revenue TTM)
Gross Margin QoQ = 60.91% (prev 76.77%)
Tobins Q-Ratio = 0.73 (Enterprise Value 899.0m / Total Assets 1.24b)
Interest Expense / Debt = 5.23% (Interest Expense 10.5m / Debt 201.2m)
Taxrate = 21.0% (US default 21%)
NOPAT = -41.0m (EBIT -51.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.47 (Total Current Assets 824.3m / Total Current Liabilities 560.4m)
Debt / Equity = 0.47 (Debt 201.2m / totalStockholderEquity, last quarter 430.9m)
Debt / EBITDA = 20.65 (negative EBITDA) (Net Debt -139.8m / EBITDA -6.77m)
Debt / FCF = -2.01 (Net Debt -139.8m / FCF TTM 69.7m)
Total Stockholder Equity = 436.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.21% (Net Income -62.2m / Total Assets 1.24b)
RoE = -6.13% (Net Income TTM -62.2m / Total Stockholder Equity 1.02b)
RoCE = -4.27% (EBIT -51.9m / Capital Employed (Equity 1.02b + L.T.Debt 200.0m))
RoIC = -6.69% (negative operating profit) (NOPAT -41.0m / Invested Capital 613.0m)
WACC = 9.86% (E(1.04b)/V(1.24b) * Re(10.97%) + D(201.2m)/V(1.24b) * Rd(5.23%) * (1-Tc(0.21)))
Discount Rate = 10.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 3.29%
[DCF] Terminal Value 73.24% ; FCFF base≈63.1m ; Y1≈72.4m ; Y5≈106.5m
[DCF] Fair Price = 8.05 (EV 1.27b - Net Debt -139.8m = Equity 1.41b / Shares 174.6m; r=9.86% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.11 | # QB: 1
Revenue Correlation: 99.19 | Revenue CAGR: 25.03% | SUE: 0.63 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.05 | Chg30d=-17.33% | Revisions=-9% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.07 | Chg30d=+1.90% | Revisions=+9% | Analysts=10
EPS current Year (2026-12-31): EPS=0.20 | Chg30d=+5.89% | Revisions=+33% | GrowthEPS=+15.1% | GrowthRev=+12.0%
EPS next Year (2027-12-31): EPS=0.34 | Chg30d=+3.02% | Revisions=+60% | GrowthEPS=+71.1% | GrowthRev=+12.1%
[Analyst] Revisions Ratio: +60%