AVIS BUDGET GROUP INC (CAR) Stock Fundamental Analysis
NASDAQ:CAR - Nasdaq - US0537741052 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CAR. CAR was compared to 40 industry peers in the Ground Transportation industry. There are concerns on the financial health of CAR while its profitability can be described as average. CAR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CAR had positive earnings in the past year.
CAR had a positive operating cash flow in the past year.
In multiple years CAR reported negative net income over the last 5 years.
Each year in the past 5 years CAR had a positive operating cash flow.
1.2 Ratios
CAR has a Return On Assets of -7.62%. This is amonst the worse of the industry: CAR underperforms 82.50% of its industry peers.
CAR has a Return On Invested Capital (4.22%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAR is in line with the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.62% | ||
| ROE | N/A | ||
| ROIC | 4.22% |
ROA(3y)3.13%
ROA(5y)2.24%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.86%
ROIC(5y)N/A
1.3 Margins
CAR has a Operating Margin of 10.86%. This is in the better half of the industry: CAR outperforms 72.50% of its industry peers.
CAR's Operating Margin has improved in the last couple of years.
CAR's Gross Margin of 60.33% is fine compared to the rest of the industry. CAR outperforms 72.50% of its industry peers.
CAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 60.33% |
OM growth 3Y-17.21%
OM growth 5Y6.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.82%
GM growth 5Y4.48%
2. Health
2.1 Basic Checks
CAR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CAR has about the same amount of shares outstanding.
The number of shares outstanding for CAR has been reduced compared to 5 years ago.
The debt/assets ratio for CAR is higher compared to a year ago.
2.2 Solvency
CAR has an Altman-Z score of 0.70. This is a bad value and indicates that CAR is not financially healthy and even has some risk of bankruptcy.
CAR has a worse Altman-Z score (0.70) than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.58
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.64 indicates that CAR may have some problems paying its short term obligations.
CAR's Current ratio of 0.64 is on the low side compared to the rest of the industry. CAR is outperformed by 92.50% of its industry peers.
A Quick Ratio of 0.64 indicates that CAR may have some problems paying its short term obligations.
CAR has a Quick ratio of 0.64. This is amonst the worse of the industry: CAR underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
CAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.11%.
CAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.82% yearly.
Looking at the last year, CAR shows a decrease in Revenue. The Revenue has decreased by -2.78% in the last year.
The Revenue has been growing slightly by 5.15% on average over the past years.
EPS 1Y (TTM)-42.11%
EPS 3Y-7.52%
EPS 5Y37.82%
EPS Q2Q%-1.87%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-4.74%
3.2 Future
The Earnings Per Share is expected to decrease by -8.86% on average over the next years.
The Revenue is expected to grow by 0.66% on average over the next years.
EPS Next Y-46.54%
EPS Next 2Y-19.52%
EPS Next 3Y-8.86%
EPS Next 5YN/A
Revenue Next Year-0.79%
Revenue Next 2Y0.64%
Revenue Next 3Y0.66%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.50, which indicates a very decent valuation of CAR.
Based on the Price/Earnings ratio, CAR is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
CAR is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.15, CAR is valued correctly.
Based on the Price/Forward Earnings ratio, CAR is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAR to the average of the S&P500 Index (36.44), we can say CAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than CAR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
A cheap valuation may be justified as CAR's earnings are expected to decrease with -8.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-19.52%
EPS Next 3Y-8.86%
5. Dividend
5.1 Amount
CAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
192.48
-3.61 (-1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners112.78%
Inst Owner Change0.26%
Ins Owners2.56%
Ins Owner Change1.82%
Market Cap6.77B
Analysts76.92
Price Target123.13 (-36.03%)
Short Float %20.18%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1160.65%
Min EPS beat(2)44.1%
Max EPS beat(2)2277.21%
EPS beat(4)2
Avg EPS beat(4)554.39%
Min EPS beat(4)-84.3%
Max EPS beat(4)2277.21%
EPS beat(8)5
Avg EPS beat(8)287.76%
EPS beat(12)9
Avg EPS beat(12)215.62%
EPS beat(16)13
Avg EPS beat(16)202.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-3.03%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-1.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.71%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)8
Avg Revenue beat(16)2.19%
PT rev (1m)8.47%
PT rev (3m)9.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.66%
EPS NY rev (1m)0%
EPS NY rev (3m)11.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 16.15 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | 1.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.86 |
EPS(TTM)18.34
EY9.53%
EPS(NY)11.92
Fwd EY6.19%
FCF(TTM)-176.16
FCFYN/A
OCF(TTM)100.82
OCFY52.38%
SpS331.57
BVpS-80.19
TBVpS-128.19
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.62% | ||
| ROE | N/A | ||
| ROCE | 4.93% | ||
| ROIC | 4.22% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 4.61% | ||
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 60.33% | ||
| FCFM | N/A |
ROA(3y)3.13%
ROA(5y)2.24%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.86%
ROIC(5y)N/A
ROICexc(3y)8.03%
ROICexc(5y)N/A
ROICexgc(3y)8.63%
ROICexgc(5y)N/A
ROCE(3y)9.2%
ROCE(5y)N/A
ROICexcg growth 3Y-19.02%
ROICexcg growth 5Y6.42%
ROICexc growth 3Y-18.19%
ROICexc growth 5Y7.1%
OM growth 3Y-17.21%
OM growth 5Y6.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.82%
GM growth 5Y4.48%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 322.64% | ||
| Cap/Sales | 83.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.7 |
F-Score5
WACC7.22%
ROIC/WACC0.58
Cap/Depr(3y)511.74%
Cap/Depr(5y)496.46%
Cap/Sales(3y)101.2%
Cap/Sales(5y)102.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.11%
EPS 3Y-7.52%
EPS 5Y37.82%
EPS Q2Q%-1.87%
EPS Next Y-46.54%
EPS Next 2Y-19.52%
EPS Next 3Y-8.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-4.74%
Revenue Next Year-0.79%
Revenue Next 2Y0.64%
Revenue Next 3Y0.66%
Revenue Next 5YN/A
EBIT growth 1Y-41.93%
EBIT growth 3Y-10.44%
EBIT growth 5Y12.44%
EBIT Next Year42.01%
EBIT Next 3Y19.94%
EBIT Next 5YN/A
FCF growth 1Y17.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.96%
OCF growth 3Y0.26%
OCF growth 5Y6.35%