ACV Auctions: Eyes On Maiden Quarter Of EBITDA Profitability

May 10, 2024 5:15 PM ETACV Auctions Inc. (ACVA) StockACVA
The Value Pendulum
Investing Group Leader

Summary

  • ACV Auctions Inc. registered a substantial +23% EBITDA beat for Q1 2024, which also marked its maiden quarter of positive EBITDA.
  • The company expects to generate positive EBITDA in Q2 and the full year, as per its guidance, which is based on realistic assumptions in my view.
  • My opinion is that there is likely to be a positive re-rating of ACV Auctions' share price and valuations going forward, as the company improves its operating profitability.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

Car auction Sold out concept. Vehicle security key with tag on the wooden background

Sensay

Elevator Pitch

I award a Buy investment rating to ACV Auctions Inc. (NYSE:ACVA) shares. Earlier, my February 24, 2024, update reviewed ACV Auctions' performance for the final quarter of the prior year.

The current write-up assesses ACVA's recent

Asia Value & Moat Stocks is a research service for value investors seeking Asia-listed stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high-quality businesses, hidden champions and wide moat compounders). Sign up here to get started today!

This article was written by

The Value Pendulum
12.81K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ACVA Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ACVA

Related Stocks

SymbolLast Price% Chg
ACVA
--
Compare

Trending Analysis

Trending News