We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How ADESA Is Supercharging Carvana's Next Phase of Growth
Read MoreHide Full Article
Key Takeaways
{\"0\":\"CVNA has integrated 12 ADESA sites, boosting inventory pools by 50% year over year.\",\"1\":\"Shorter transport routes have cut delivery times by 0.7 days and reduced logistics costs.\",\"2\":\"ADESA Clear digital auctions now span 47 sites, streamlining wholesale buying and selling.\"}
Used car e-retailer Carvana’s (CVNA - Free Report) $2.2 billion ADESA acquisition is proving to be more than just a bold expansion. It’s becoming a key pillar of the company’s operational improvement and long-term growth strategy.
Since the buyout, Carvana has been steadily integrating ADESA’s physical locations into its ecosystem. By Q2’25 end, the company had integrated 12 ADESA sites, enabling more reconditioning and inventory pooling. This broader footprint has increased Carvana’s inventory pools to 30—a 50% jump from a year ago—helping the company prepare more vehicles faster to meet rising demand.
Image Source: Carvana, Inc.
These integrations aren’t just about scale but are also driving real efficiencies. With more locations to store and process cars, Carvana has cut inbound transport distances by 20% and outbound miles by 10% year over year. That’s helping speed up deliveries, which are now 0.7 days faster than last year. For customers, it means quicker turnarounds and for Carvana, it means lower costs and smoother logistics.
Carvana is also ramping up ADESA Clear, a digital auction platform now live at 47 Carvana and ADESA sites. It combines ADESA’s deep wholesale knowledge with Carvana’s tech know-how to create a seamless experience for both buyers and sellers. For commercial sellers, it offers a full-service, cost-efficient remarketing solution. For wholesale buyers, it unlocks more vehicle options and a streamlined digital bidding process.
All this supports Carvana’s ambitious goal of selling 3 million cars a year with a 13.5% adjusted EBITDA margin within the next 5-10 years. While its target is still a long way off, the ADESA integration is laying the groundwork—boosting capacity, improving efficiency, and enhancing the customer experience. All in all, ADESA is becoming a powerful engine behind Carvana’s next phase of growth.
The Zacks Rundown on Carvana
Shares of CVNA have jumped 44% over the past six months, outperforming the industry as well as its close peers like CarMax (KMX - Free Report) and AutoNation (AN - Free Report) . CarMax — being the largest retailer of used vehicles in the United States — witnessed its stock price decline more than 33% over the past year. AutoNation — one of the leading auto retailers of the country (selling both new and used vehicles) — saw its share price drop 2% in the same timeframe.
Image Source: Zacks Investment Research
From a valuation perspective, Carvana appears overvalued. It has a Value Score of D. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.74, higher than its industry’s 0.28. In contrast, CarMax and AutoNation trade at just 0.3X and 0.26X, respectively.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for CVNA’s earnings has been revised over the past 60 days.
Image Source: Zacks Investment Research
Carvana stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
How ADESA Is Supercharging Carvana's Next Phase of Growth
Key Takeaways
Used car e-retailer Carvana’s (CVNA - Free Report) $2.2 billion ADESA acquisition is proving to be more than just a bold expansion. It’s becoming a key pillar of the company’s operational improvement and long-term growth strategy.
Since the buyout, Carvana has been steadily integrating ADESA’s physical locations into its ecosystem. By Q2’25 end, the company had integrated 12 ADESA sites, enabling more reconditioning and inventory pooling. This broader footprint has increased Carvana’s inventory pools to 30—a 50% jump from a year ago—helping the company prepare more vehicles faster to meet rising demand.
These integrations aren’t just about scale but are also driving real efficiencies. With more locations to store and process cars, Carvana has cut inbound transport distances by 20% and outbound miles by 10% year over year. That’s helping speed up deliveries, which are now 0.7 days faster than last year. For customers, it means quicker turnarounds and for Carvana, it means lower costs and smoother logistics.
Carvana is also ramping up ADESA Clear, a digital auction platform now live at 47 Carvana and ADESA sites. It combines ADESA’s deep wholesale knowledge with Carvana’s tech know-how to create a seamless experience for both buyers and sellers. For commercial sellers, it offers a full-service, cost-efficient remarketing solution. For wholesale buyers, it unlocks more vehicle options and a streamlined digital bidding process.
All this supports Carvana’s ambitious goal of selling 3 million cars a year with a 13.5% adjusted EBITDA margin within the next 5-10 years. While its target is still a long way off, the ADESA integration is laying the groundwork—boosting capacity, improving efficiency, and enhancing the customer experience. All in all, ADESA is becoming a powerful engine behind Carvana’s next phase of growth.
The Zacks Rundown on Carvana
Shares of CVNA have jumped 44% over the past six months, outperforming the industry as well as its close peers like CarMax (KMX - Free Report) and AutoNation (AN - Free Report) . CarMax — being the largest retailer of used vehicles in the United States — witnessed its stock price decline more than 33% over the past year. AutoNation — one of the leading auto retailers of the country (selling both new and used vehicles) — saw its share price drop 2% in the same timeframe.
From a valuation perspective, Carvana appears overvalued. It has a Value Score of D. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.74, higher than its industry’s 0.28. In contrast, CarMax and AutoNation trade at just 0.3X and 0.26X, respectively.
See how the Zacks Consensus Estimate for CVNA’s earnings has been revised over the past 60 days.
Carvana stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here