ACVA

ACV Auctions

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Auto & Truck Dealerships

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

ACV Auctions operates a digital marketplace connecting buyers and sellers of wholesale vehicles, monetizing transactions through fees and value-added services. The model relies on driving marketplace liquidity, increasing transaction volume, and layering in services that enhance transparency and pricing efficiency. Its moat depends on network effects: as more dealers transact on the platform, data depth improves, which in turn sharpens pricing accuracy and buyer confidence. Sustainable cash generation hinges on scaling transaction volume faster than operating costs, turning platform economics into durable margin expansion.

VALUATION

P/E

-

Market Cap ($M USD)

$794

Forward P/E

13

PEG

-

PRICE TO SALES

1

PRICE TO BOOK

1.8

EV / EBITDA

-62.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$0.39

Next Year EPS Growth Estimate

$0.33

Next Year Revenue Growth Estimate

13.10%

Return on Equity (ROE)

-15.40%

Operating Margin

-8.30%

Debt-to-Equity

0.4

Piotroski F-Score

5

Altman Z-Score

0.8

Return on Invested Capital (ROIC)

-11.00%%

Current Ratio

1.6

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At a $794M market cap with a Forward P/E of 13, ACVA screens optically inexpensive, but this is not a clean value story. The company is operating with a negative EPS of -62.3, an operating margin of -15.40%, and a deeply distressed Altman Z-Score of 0.8, which signals elevated financial risk. A Piotroski F-Score of 5 suggests middling fundamentals rather than a turnaround in full swing. The market is pricing in improvement via the forward multiple, but the balance sheet stress and negative profitability metrics suggest this is a speculative recovery play, not a proven compounder.

AI Exposure / Tech Reliance

As a company in the Auto & Truck Dealerships space, ACVA operates in a segment increasingly influenced by digital platforms and data-driven pricing. The ability to integrate AI into vehicle inspection, pricing algorithms, and marketplace liquidity will determine long-term competitiveness. Companies that fail to digitize transaction flow and inventory analytics risk structural margin compression in this sector.

The Bull Case

A GARP-oriented investor could argue that a Forward P/E of 13 combined with a Price/Sales of 1 and Price/Book of 1.8 presents asymmetry if earnings normalize. Institutional Ownership at $9.21 and a Consensus Rating of 6.20% suggest some level of professional engagement, while Return on Equity of 13.10% indicates that capital, when profitable, can be deployed efficiently. The Current Ratio of 1.6 provides near-term liquidity support, and a Piotroski F-Score of 5 implies the business is not fundamentally broken across every dimension. If management can stabilize the -15.40% operating margin and reverse the -11.00% ROIC, even modest execution could justify multiple expansion from current compressed levels.

The Bear Case

The bear case is straightforward: the company is losing money, with EPS at -62.3 and operating margins at -15.40%, while ROIC sits at -11.00%, meaning capital is being destroyed. The Altman Z-Score of 0.8 is firmly in distress territory, raising solvency concerns if profitability does not inflect quickly. Debt/Equity of -8.30% is an abnormal capital structure signal, and the absence of a PEG ratio removes visibility into growth-adjusted valuation discipline. With no dividend, a negligible TTM Yield of 0.4, and no payout ratio support, investors are entirely reliant on speculative earnings recovery rather than tangible shareholder returns.

Market Sentiment & Smart Money

Short Interest %

6.20%

Analyst Consensus

2.07

Average Analyst Price Target

$9.21

Institutional Ownership %

96.30%

1-Year Beta

1.25

Insider Buying % (6 Mo)

3.40%%

Distance to 52-Week High

24.70%%

Distance to 52-Week Low

106.50%%