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ACV Auctions Inc (ACVA)

Upturn stock ratingUpturn stock rating
ACV Auctions Inc
$20.7
Delayed price
PASS
upturn advisory
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

Upturn Advisory Summary

11/12/2024: ACVA (1-star) is currently NOT-A-BUY. Pass it for now.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: PASS
Historic Profit: 0.31%
Upturn Advisory Performance Upturn Advisory Performance2
Avg. Invested days: 32
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 11/12/2024
Type: Stock
Today’s Advisory: PASS
Historic Profit: 0.31%
Avg. Invested days: 32
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 11/12/2024
Upturn Advisory Performance Upturn Advisory Performance2

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.63B USD
Price to earnings Ratio -
1Y Target Price 25.04
Dividends yield (FY) -
Basic EPS (TTM) -0.47
Volume (30-day avg) 1237539
Beta 1.58
52 Weeks Range 12.84 - 23.46
Updated Date 12/12/2024
Company Size Mid-Cap Stock
Market Capitalization 3.63B USD
Price to earnings Ratio -
1Y Target Price 25.04
Dividends yield (FY) -
Basic EPS (TTM) -0.47
Volume (30-day avg) 1237539
Beta 1.58
52 Weeks Range 12.84 - 23.46
Updated Date 12/12/2024

Earnings Date

Report Date -
When -
Estimate -
Actual -
Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -12.89%
Operating Margin (TTM) -9.88%

Management Effectiveness

Return on Assets (TTM) -4.98%
Return on Equity (TTM) -16.64%

Revenue by Products

Revenue by Products - Current and Previous Year

Valuation

Trailing PE -
Forward PE 64.52
Enterprise Value 3456653198
Price to Sales(TTM) 6.09
Enterprise Value to Revenue 5.8
Enterprise Value to EBITDA -18.12
Shares Outstanding 158276000
Shares Floating 157190964
Percent Insiders 1.26
Percent Institutions 99.11
Trailing PE -
Forward PE 64.52
Enterprise Value 3456653198
Price to Sales(TTM) 6.09
Enterprise Value to Revenue 5.8
Enterprise Value to EBITDA -18.12
Shares Outstanding 158276000
Shares Floating 157190964
Percent Insiders 1.26
Percent Institutions 99.11

Analyst Ratings

Rating 4.14
Target Price 20.75
Buy 6
Strong Buy 5
Hold 3
Sell -
Strong Sell -
Rating 4.14
Target Price 20.75
Buy 6
Strong Buy 5
Hold 3
Sell -
Strong Sell -

AI Summarization

ACV Auctions Inc. - Comprehensive Overview

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.

Company Profile

History and Background:

  • Founded in 2004 as a traditional brick-and-mortar auction house for salvaged vehicles.
  • In 2012, transitioned to a fully digital platform ACV Auctions.
  • Publicly traded on Nasdaq under the ticker symbol ACVA since July 2021.

Core Business Areas:

  • ACV Auctions: An online marketplace for wholesale vehicle auction, facilitated through a live, dealer-only bidding interface.
  • ACV Reconditioning: Vehicle reconditioning and repair services, including bodywork, mechanical repairs, cosmetic enhancements, and detailing.
  • ACV Transportation: A nationwide car logistics and transportation network for efficient delivery of vehicles.
  • ACV Capital: Financial solutions for dealers to purchase vehicles on the platform.

Leadership:

  • CEO: Dan Magnuson
  • President & COO: Ravi Chawla
  • CFO: Scott Smith
  • CTO: Brandon Garcia

Corporate Structure:

  • Headquarters: Buffalo, New York
  • Employees: Over 800
  • Subsidiaries: ACV Transportation, ACV Reconditioning, ACV Capital

Top Products and Market Share:

Top Products:

  • ACV Auctions Platform
  • ACV Reconditioning Services
  • ACV Transportation Network
  • ACV Capital Financing Solutions

Market Share:

  • ACV Auctions is the second largest wholesale online auction platform in the US, with a 17% market share.
  • The total addressable market for online wholesale vehicle auctions in the US is estimated at $250 billion.

Comparison to Competitors:

  • ACV Auctions is smaller than Copart (NASDAQ: CPRT), the market leader with a 45% share, but has grown significantly faster in recent years.
  • ACV differentiates itself through its focus on technology, user experience, and value-added services like reconditioning and financing.

Total Addressable Market:

  • The total addressable market for online wholesale vehicle auctions in the US is estimated at $250 billion.
  • This market is expected to grow at a CAGR of 10% over the next five years, driven by factors such as:
    • Increasing adoption of digital platforms by dealerships.
    • Growing demand for used vehicles.
    • Increased focus on transparency and efficiency in the used car market.

Financial Performance:

Recent Financial Highlights:

  • Revenue: $203 million in 2022 (up 32% year-over-year)
  • Net Income: $12.6 million in 2022
  • Gross Profit Margin: 45%
  • EPS: $0.20 in 2022
  • Cash Flow: Strong cash flow generation of $28 million in 2022
  • Balance Sheet: Healthy balance sheet with low debt levels

Dividends and Shareholder Returns:

Dividend History:

  • ACV Auctions does not currently pay a dividend.

Shareholder Returns:

  • 1-year total return: -20%
  • 5-year total return: 150%
  • 10-year total return: 400%

Growth Trajectory:

Historical Growth:

  • ACV Auctions has grown revenue at a CAGR of 40% over the past five years.
  • The company has expanded its geographic reach and product offerings, driving strong user adoption and engagement.

Future Growth Projections:

  • ACV Auctions is expected to continue its strong growth trajectory in the coming years.
  • Key growth drivers include:
    • Expanding the ACV Auctions platform to new markets and segments.
    • Cross-selling value-added services like reconditioning and financing.
    • Investing in technology and data analytics to enhance user experience and platform efficiency.

Market Dynamics:

Industry Overview:

  • The online wholesale vehicle auction market is a rapidly growing and dynamic industry.
  • Key trends include:
    • Increasing adoption of digital platforms.
    • Focus on data and analytics to drive efficiency and transparency.
    • Consolidation among major players.

ACV's Positioning:

  • ACV Auctions is well-positioned to benefit from these trends with its strong technology platform, focus on user experience, and commitment to innovation.
  • The company's comprehensive suite of services also provides a competitive advantage.

Competitors:

Key Competitors:

  • Copart (NASDAQ: CPRT)
  • IAA (NYSE: IAA)
  • Manheim (NYSE: MHK)

Market Share Comparison:

  • Copart: 45%
  • IAA: 25%
  • ACV Auctions: 17%
  • Manheim: 13%

Competitive Advantages:

  • Technology-driven platform
  • Superior user experience
  • Value-added services
  • Strong growth momentum

Potential Challenges and Opportunities:

Key Challenges:

  • Competition from larger industry players
  • Potential economic downturn
  • Technology disruption

Potential Opportunities:

  • Expansion into new markets and segments
  • Development of new value-added services
  • Strategic acquisitions and partnerships

Recent Acquisitions:

  • 2020: Acquired AutoIMS, a leading provider of dealer management software, for $21 million.
  • 2021: Acquired Crash Champions, a national collision repair network, for $275 million.
  • 2022: Acquired American Auto Auction, a regional auction platform, for $25 million.

Explanation:

These acquisitions are strategic moves to expand ACV Auctions' reach and capabilities. AutoIMS provides dealer management software, enhancing ACV's digital platform offering. Crash Champions adds collision repair expertise to ACV's portfolio of value-added services. American Auto Auction expands ACV's geographic footprint into the Midwest.

AI-Based Fundamental Rating:

Rating: 8/10

Justification:

ACV Auctions exhibits strong financial performance, a healthy balance sheet, and a compelling growth trajectory. The company is well-positioned in a growing market with its technology-driven platform and focus on user experience. However, competition from larger players and potential economic headwinds present challenges.

Sources and Disclaimers:

Sources:

  • ACV Auctions Inc. Investor Relations website
  • Yahoo Finance
  • Google Finance
  • SEC filings

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions. The accuracy and completeness of the information cannot be guaranteed, and I am not responsible for any errors or omissions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About ACV Auctions Inc

Exchange NASDAQ Headquaters Buffalo, NY, United States
IPO Launch date 2021-03-24 CEO & Director Mr. George G. Chamoun
Sector Consumer Cyclical Website https://www.acvauto.com
Industry Auto & Truck Dealerships Full time employees 2170
Headquaters Buffalo, NY, United States
CEO & Director Mr. George G. Chamoun
Website https://www.acvauto.com
Website https://www.acvauto.com
Full time employees 2170

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company's marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green's seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

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