Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Carvana Co. reported an outstanding performance in the third quarter of 2024, with significant financial achievements that attested both to their operational efficiency and market penetration.</li><li>The company registered a record net income of $148 million, with the adjusted EBITDA reaching $429 million, corresponding to an adjusted EBITDA margin of 11.7%.</li><li>These figures represent not only a record for Carvana Co. but also, as noted by CEO Ernie Garcia, mark the most profitable quarter among automotive public retailers ever.</li></ul>

Carvana Co. reported an outstanding performance in the third quarter of 2024, with significant financial achievements that attested both to their operational efficiency and market penetration.The company registered a record net income of $148 million, with the adjusted EBITDA reaching $429 million, corresponding to an adjusted EBITDA margin of 11.7%.These figures represent not only a record for Carvana Co. but also, as noted by CEO Ernie Garcia, mark the most profitable quarter among automotive public retailers ever.

Carvana Co.: Enhanced Online Marketplace Growth & Other Major Drivers

<ul><li>Carvana Co.'s second quarter of 2024 earnings highlighted a compelling period of growth and profitability for the company, earmarking significant strides toward their long-term goals in a highly competitive and expansive market.</li><li>Notably, Carvana achieved positive net income for the second consecutive quarter and reportedly set new company records for adjusted EBITDA, margin, and GAAP operating income.</li><li>Positively, the call underlined increased retail units sold by 33% year-over-year despite concerted efforts to enhance unit economics and maintain profitability.</li></ul>

Carvana Co.'s second quarter of 2024 earnings highlighted a compelling period of growth and profitability for the company, earmarking significant strides toward their long-term goals in a highly competitive and expansive market.Notably, Carvana achieved positive net income for the second consecutive quarter and reportedly set new company records for adjusted EBITDA, margin, and GAAP operating income.Positively, the call underlined increased retail units sold by 33% year-over-year despite concerted efforts to enhance unit economics and maintain profitability.

Carvana Co.: A Bear's Perspective On Why We Are Not So Optimistic About Its Prospects! - Major Drivers

<ul><li>The first quarter of 2024 has proven to be an exponential period of growth for Carvana.</li><li>The company effectively posted an adjusted EBITDA margin of 7.7%, simultaneously setting a new company record and establishing itself as the most profitable public automotive retailer in the U.S. Consequently, the quarter saw growth in retail units by 16% year-over-year, despite a 4% decrease in marketing expenditure and having limited inventory.</li><li>The company had its first quarter with an adjusted EBITDA surpassing CapEx and interest expense, accomplishing this by a significant margin.</li></ul>

The first quarter of 2024 has proven to be an exponential period of growth for Carvana.The company effectively posted an adjusted EBITDA margin of 7.7%, simultaneously setting a new company record and establishing itself as the most profitable public automotive retailer in the U.S. Consequently, the quarter saw growth in retail units by 16% year-over-year, despite a 4% decrease in marketing expenditure and having limited inventory.The company had its first quarter with an adjusted EBITDA surpassing CapEx and interest expense, accomplishing this by a significant margin.

Carvana Co.: Strong Business Infrastructure and Efficiency! - Major Drivers

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>Liquidity shorts can be great short candidates.  The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements. </li>
<li>Liquidity shorts have built-in catalysts, have moderate to higher betas,  and can have strong down moves if a crisis develops.  They can go bankrupt, pushing the stock price near zero.</li>
<li>Today we are flagging Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva .</li>
</ul>


Liquidity shorts can be great short candidates.  The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements. 
Liquidity shorts have built-in catalysts, have moderate to higher betas,  and can have strong down moves if a crisis develops.  They can go bankrupt, pushing the stock price near zero.
Today we are flagging Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva .


Liquidity Risk Short Candidates: Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva

Event-Driven

<ul>
<li>This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. </li>
<li>The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized. </li>
<li>This week we flag: Carvana, Life Time Group, Bed Bath &amp; Beyond, Surgery Partners</li>
</ul>


This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. 
The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized. 
This week we flag: Carvana, Life Time Group, Bed Bath &amp; Beyond, Surgery Partners


Solvency Risk Short Candidates: Carvana, Life Time Group, Bed Bath & Beyond, Surgery Partners

United States

Carvana Co. operates an online platform for buying used cars. The Company offers test drives, vehicle financing, and car reviews. Carvana serves customers in the United States.

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Carvana (CVNA US)

Carvana Co.: Enhanced Online Marketplace Growth & Other Major Drivers

Carvana Co. reported an outstanding performance in the third quarter of 2024, with significant financial achievements that attested both to their...

Baptista Research

Carvana Co.: A Bear's Perspective On Why We Are Not So Optimistic About Its Prospects! - Major Drivers

Carvana Co.'s second quarter of 2024 earnings highlighted a compelling period of growth and profitability for the company, earmarking significant...

Baptista Research

Carvana Co.: Strong Business Infrastructure and Efficiency! - Major Drivers

The first quarter of 2024 has proven to be an exponential period of growth for Carvana. The company effectively posted an adjusted EBITDA margin...

Baptista Research

Liquidity Risk Short Candidates: Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva

Liquidity risk short candidates may not be economically viable given cash flows and capital requirements. This week we flag Carvana, Exact...

Eric Fernandez, CFA

Solvency Risk Short Candidates: Carvana, Life Time Group, Bed Bath & Beyond, Surgery Partners

This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows. This week we flag: Carvana, Life Time...

Eric Fernandez, CFA

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