One-glance verdict
Within fair range
$7.83 our estimate vs market $10.50
Wall Street consensus: $9.00 (15.0% higher than our fair-value estimate)
34% above our estimate
Fundamentals snapshot
ACV Auctions Inc
ACVA · NYQ · Consumer Cyclical · Auto & Truck Dealerships
Current price
$10.50
52-week range
$4.07 - $10.51
Market cap
$1.78B
Balance sheet
Distressed
-6.57x Concerning
Net debt $7.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 5.5% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -15.1% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 4.5% (peer median: 7.9%).
What this company does
ACV Auctions Inc
ACV Auctions runs an online marketplace where car dealerships sell used cars to other dealerships. Their money mainly comes from fees associated with these sales, and this matters because it shows how many transactions are happening on their platform.
How the company got here
ACV Auctions was founded in 2014 with the goal of modernizing the way used cars are bought and sold between dealerships. Before ACV, the wholesale used car market relied heavily on physical auction houses, which were often inefficient and lacked transparency. ACV's founders envisioned a digital-first platform that would use data and technology to create a more streamlined and trustworthy experience for car dealers. The company rapidly grew by focusing on providing detailed vehicle inspections and a transparent online auction process, moving away from the traditional in-person model. ACV went public in 2021, marking a significant milestone in its journey to transform the wholesale automotive industry.
What it actually does
ACV Auctions operates an online marketplace exclusively for licensed car dealers to buy and sell used vehicles. Think of it as a digital auction house where dealerships can efficiently trade inventory among themselves. The platform provides detailed digital inspection reports for each vehicle, allowing buyers to assess condition and make informed decisions remotely. ACV aims to bring transparency and efficiency to the wholesale auto market, reducing the time and costs associated with traditional methods.
Auction Marketplace
This is ACV's core business and the largest part of its operations, generating the majority of its revenue. It's a digital platform where licensed car dealers can list vehicles for sale and other dealers can bid on them in live, 20-minute auctions. ACV provides comprehensive vehicle inspection reports, which include detailed condition assessments and imagery, to give buyers confidence in their purchases. The company makes money through fees charged to both sellers for listing their vehicles and buyers for successful purchases.
ACV Transportation
This service helps facilitate the movement of vehicles purchased through the ACV Auctions marketplace. It provides buyers with real-time transportation quotes and manages the logistics of getting the vehicle from the seller to the buyer. This is an add-on service that helps streamline the entire transaction process for dealers, making it easier to acquire inventory from anywhere in the country.
ACV Capital
ACV Capital offers short-term financing solutions to help dealers purchase vehicles from the ACV Auctions marketplace. This service provides buyers with access to capital, enabling them to acquire inventory more readily. By offering financing, ACV aims to make it easier for dealers to manage their inventory needs and complete transactions smoothly.
Data Services
ACV provides various data services that help dealers make informed decisions about buying, selling, and valuing vehicles. These include the True360 report, which offers detailed cosmetic and structural assessments of vehicles, and the ACV Market Report, which provides pricing data for comparable used vehicles. Additionally, ACV offers inventory management software like MAX Digital, helping dealers manage their stock and pricing strategies.
What management is betting on now
ACV's management is focused on driving profitability by increasing the adoption of its higher-margin services, such as financing and transportation, which are attached to vehicle transactions. They are also working to deepen their technological advantage by enhancing the data captured during vehicle inspections, creating a "data moat" that builds dealer trust. A key priority is improving operational efficiency to reduce costs and enhance unit economics, aiming to reach profitability. Furthermore, ACV is strategically expanding its reach into the commercial wholesale market, targeting larger dealer groups and original equipment manufacturers (OEMs) to accelerate growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$20.16M
FY2024 Q4
$-3.92M
FY2025 Q1
$65.28M
FY2025 Q2
$10.86M
FY2025 Q3
$7.65M
FY2025 Q4
$-14.65M
FY2026 Q1
$74.74M
FY2026 Q2
$-38.62M
Revenue
$213.94M
Net income
$-8.23M
Diluted EPS
-0.05
Operating cash flow
$-35.50M
Free cash flow
$-38.62M
Fetching…
Sources
Revenue
$204.19M
Net income
$-10.89M
Diluted EPS
-0.06
Operating cash flow
$76.51M
Free cash flow
$74.74M
Fetching…
Sources
Revenue
$183.65M
Net income
$-19.56M
Diluted EPS
-0.12
Operating cash flow
$-12.36M
Free cash flow
$-14.65M
Fetching…
Sources
Revenue
$199.56M
Net income
$-24.46M
Diluted EPS
-0.14
Operating cash flow
$10.25M
Free cash flow
$7.65M
Fetching…
Sources
Revenue
$193.70M
Net income
$-7.30M
Diluted EPS
-0.04
Operating cash flow
$13.71M
Free cash flow
$10.86M
Fetching…
Sources
Revenue
$182.70M
Net income
$-14.82M
Diluted EPS
-0.09
Operating cash flow
$66.62M
Free cash flow
$65.28M
Fetching…
Sources
Revenue
$159.51M
Net income
$-26.14M
Diluted EPS
-0.15
Operating cash flow
$-3.22M
Free cash flow
$-3.92M
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Sources
Revenue
$171.33M
Net income
$-16.03M
Diluted EPS
-0.10
Operating cash flow
$21.12M
Free cash flow
$20.16M
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Sources
Is it cheap or expensive?
Fair value $7.83 vs current price $10.50
Wall Street consensus is the average analyst price target: $9.00 (15.0% higher than our fair-value estimate).
Our most-likely fair value is $7.83 a share — about 25.5% away from today's price of $10.50, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $7.4M. Interest coverage -6.6x.
Net debt
$7.44M
Interest coverage
-6.57x
ACV Auctions Inc's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
ACVA
BASELINE
ACV Auctions Inc
Total debt $249.70M Interest coverage -6.57x This is the baseline the peer rows are being compared against.
Total debt $2.47B Interest coverage 11.25x This peer still has a real interest-payment cushion, while ACVA does not.
Total debt $88.37M Interest coverage 99.03x This peer still has a real interest-payment cushion, while ACVA does not.
Total debt $4.70B Interest coverage 3.86x This peer still has a real interest-payment cushion, while ACVA does not.
Total debt $13.84M Interest coverage 8.02x This peer still has a real interest-payment cushion, while ACVA does not.
Total debt $5.70B Interest coverage 3.72x This peer still has a real interest-payment cushion, while ACVA does not.
What you should know
The case for and against ACVA
2 Rewards
2 Risks
Rewards
-
Revenue grew 5.5% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -15.1% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 4.5% (peer median: 7.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
33.92x
P/B
4.56x
P/S
2.23x
EV/EBITDA
-62.27x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
26.8%
Operating margin
-2.8%
Net margin
-7.9%
ROE
-15.1%
ROA
-2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.64x
Current ratio
1.52x
Quick ratio
1.47x
Total debt
$249.70M
Total cash
$242.26M
Growth
How the business has been compounding
Revenue TTM
$801.34M
Revenue 5Y CAGR
20.7%
EPS TTM
-0.37
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$38.91M
Free CF TTM
$69.13M
FCF margin
8.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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