ACV Auctions Inc.
$7.54
-0.98%ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -15.7).
Valuation inputs: P/E -15.7, earnings yield N/A, momentum -1.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -18.1%, ROIC -14.0%).
Profitability stack: net margin -12.5%, ROE -18.1%, ROIC -14.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +55.3%, momentum -1.0%, net margin -12.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
ACV Auctions Inc. Market vs Earnings Trajectory
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ACV Auctions Inc. Fair Value Envelope
ACV Auctions Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
ACV Auctions Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
ACV Auctions Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
ACV Auctions Inc. Street Expectations Map
Wall Street analysts project that ACVA stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 11.13, with estimates ranging from a low of 8.00 to a high of 16.00.
The consensus 1-year price target stands at 11.13, with estimates ranging from a low of 8.00 to a high of 16.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
ACV Auctions Inc. Insider Positioning
During the last 12 months, insiders have purchased $6.12M and sold $44K worth of ACVA shares, resulting in $6.08M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
45.5K
374.30K
3.5K
29.54K
+345K
+$345K
6-9 Months
1.0M
5.75M
1.8K
14.00K
+5.7M
+$5.73M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Goodman Robert P
Director
$5.12M
Hirsch Brian
Director
$500K
Chamoun George
Director, Officer: Chief Executive Officer
$374K
Castillo Kirsten
Director
$125K
Peer Andrew
Officer: Vp, Corporate Controller & Cao
$4K
Top Sellers
Peer Andrew
Officer: Vp, Corporate Controller & Cao
$44K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $6.08M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
5 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
No Dividend Yield Data
ACVA has not reported any dividend yield values in the available annual periods.
acva Dividend History
Learning Layer
Related Guides
Build conviction on ACVA by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.