Carvana Co. Class A

News & Events

2024-10-09 07:05:00 ET

Summary

• Carvana's auto loan delinquencies are rising, with 12.6% of loans in some degree of delinquency, posing significant financial risks.
• Ally Financial's tightening of underwriting standards will likely reduce Carvana's sales volume and exacerbate financial challenges.
• Carvana's debt restructuring with PIK bonds will lead to higher debt and interest payments, making future cash interest payments difficult.
• Despite high valuations, Carvana's fundamentals suggest overvaluation, with potential for significant stock price decline ahead of the next earnings report.

The following analysis of Carvana is from the September 29th issue of my Short Sellers Newsletter. ...

Read the full article on Seeking Alpha

For further details see: