Carvana CoHAM:CV0 -5.54%73 Gross Margin % is 19.76% as of Mar. 2026, which is 46% above its 10-year median of 13.54. GuruFocus rates HAM:CV0 with a GF Score™ of 73/100 and a GF Value™ of €68.42 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,311 Vehicles & Parts companies, Carvana Co ranks better than 51.18% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Carvana Co's Gross Profit for the
three
months ended in Mar. 2026 was €1,099 Mil. Carvana Co's Revenue for the
three
months ended in Mar. 2026 was €5,564 Mil. Therefore, Carvana Co's Gross Margin % for the quarter that ended in Mar. 2026 was 19.76%.
The historical rank and industry rank for Carvana Co's Gross Margin % or its related term are showing as below:
HAM:CV0'
s Gross Margin % Range Over the Past 10 Years
Min: 5.26 Med: 13.54 Max: 21.03
Current: 20.13
During the past 12 years, the highestGross Margin % of Carvana Co was 21.03%. The lowest was 5.26%. And the median was 13.54%.
HAM:CV0's Gross Margin % is ranked better than 51.18% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs HAM:CV0: 20.13
Carvana Co had a gross margin of 19.76% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Carvana Co was 10.30% per year.
Carvana Co (HAM:CV0) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Carvana Co had a gross margin of 19.76% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Carvana Co Gross Margin % Related Terms
Carvana Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Carvana Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:CV0 vs PAG, ALTB, LAD: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Carvana Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carvana Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Carvana Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Carvana Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Carvana Co (HAM:CV0) has a Gross Margin % of 19.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Carvana Co and its competitors. This is 46% above median its historical median of 13.54. Over the past decade, Carvana Co's Gross Margin % has ranged from 5.26 to 21.03. According to the industry distribution chart, Carvana Co ranks #640 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 48.8%.
Is Carvana Co's Gross Margin % too high?
Carvana Co's current Gross Margin % of 19.76% is 46% above median its 10-year median of 13.54. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 21.03. The Vehicles & Parts industry median Gross Margin % is 19.84. Carvana Co's value of 19.76% is 0.4% below this industry median. Based on the distribution chart, Carvana Co ranks #640 out of 1311 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Carvana Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carvana Co's Gross Margin % compare to PAG and ALTB?
According to the Vehicles & Parts industry distribution chart, Carvana Co ranks #640 out of 1311 companies for Gross Margin %. This puts Carvana Co in the upper half of its industry. The industry median Gross Margin % is 19.84. Carvana Co's value of 19.76% is 0.4% below this benchmark. Historically, Carvana Co's own Gross Margin % has ranged from 5.26 to 21.03 over the past decade. While the company's 10-year median is 13.54 vs. the industry median of 19.84, Carvana Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carvana Co's current Gross Margin % of 19.76% is 0.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Carvana Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carvana Co's current Gross Margin % is 19.76%, which is 46% above median its own 10-year median of 13.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carvana Co stock overvalued right now?
Based on GuruFocus' analysis, Carvana Co (HAM:CV0) is currently considered Modestly Undervalued. The stock's GF Value™ is €68.42, compared to a current price of €56.45 — trading 17.5% below its estimated fair value. The current Gross Margin % is 19.76%, which is 46% above median its 10-year median of 13.54 and 0.4% below the Vehicles & Parts industry median of 19.84. Carvana Co's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Carvana Co (HAM:CV0), the current Gross Margin % is 19.76% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carvana Co (HAM:CV0) Overvalued in 2026?
Based on GuruFocus' analysis, Carvana Co stock appears to be undervalued.
The current stock price of €56.45 is trading 17.5% below its estimated GF Value™ of €68.42.
GuruFocus considers Carvana Co to be Modestly Undervalued.
Key valuation signals for HAM:CV0:
Gross Margin %: 19.76% (46% above median its 10-year median of 13.54)
GF Value™: €68.42 vs. price of €56.45 (17.5% below fair value)
Industry Position: 0.4% below the Vehicles & Parts median (#640 of 1311)
No single metric tells the full story. See the HAM:CV0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
73GF Score
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