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ACVA ACV Auctions Inc. - Fundamental Analysis

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ACVA Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Cyclical Auto & Truck Dealerships
Current Price Live
$8.5
Analyst Target
$10.71
+26.0% Upside
52W High
$22.09
52W Low
$4.95

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Confidence Score
68%
Analysis Accuracy
ACVA exhibits a Piotroski F-Score of 5/9, indicating stable financial health, but lacks an Altman Z-Score, limiting distress risk assessment. The company shows strong revenue growth (16.5% YoY) and impressive earnings surprise trends, yet remains unprofitable with negative profit and return metrics. Valuation appears stretched on a forward P/E of 34.17 despite weak fundamentals, while insider selling and mixed technicals suggest caution. Analysts recommend a 'buy' with a $10.71 target, implying upside, but fundamentals do not robustly support this optimism.

Key Strengths

Revenue growth of 16.5% YoY outpaces sector average of 6.8%
Consistent earnings beat streak: 3 out of last 4 quarters exceeded estimates
High average earnings surprise of 50.71% over recent quarters
Strong gross margin of 28.98% despite operating losses
Low debt/equity ratio of 0.61, below sector average of 1.61

Key Risks

Piotroski F-Score of 5 indicates borderline financial health, not strong
Persistent unprofitability: negative net margin (-9.89%) and ROE (-16.33%)
No Altman Z-Score available, creating uncertainty around bankruptcy risk
Insider selling activity: $0.08M in sales over last 6 months, no buys
Stock trades at high forward P/E of 34.17 despite negative earnings history
AI Fair Value Estimate
Based on comprehensive analysis
$10.71
+26.0% above current price

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