117.87 USD
+0.35 (+0.3%)
Taking everything into account, CAR scores 3 out of 10 in our fundamental rating. CAR was compared to 42 industry peers in the Ground Transportation industry. CAR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- CAR had positive earnings in the past year.
- In the past year CAR had a positive cash flow from operations.
- 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 -6.46%. This is in the lower half of the industry: CAR underperforms 73.81% of its industry peers.
- CAR's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. CAR outperforms 59.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CAR is in line with the industry average of 6.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | N/A | ||
| ROIC | 4.05% |
ROA(3y)3.13%
ROA(5y)2.24%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.81%
ROIC(5y)N/A
1.3 Margins
- Looking at the Operating Margin, with a value of 11.90%, CAR belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
- CAR's Operating Margin has improved in the last couple of years.
- CAR has a Gross Margin of 61.86%. This is in the better half of the industry: CAR outperforms 73.81% of its industry peers.
- CAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.9% | ||
| PM (TTM) | N/A | ||
| GM | 61.86% |
OM growth 3Y-18.05%
OM growth 5Y6.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.6%
GM growth 5Y4.35%
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.
- CAR has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CAR has less shares outstanding
- Compared to 1 year ago, CAR has a worse debt to assets ratio.
2.2 Solvency
- CAR has an Altman-Z score of 0.62. This is a bad value and indicates that CAR is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.62, CAR is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.64
WACC6.34%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that CAR may have some problems paying its short term obligations.
- With a Current ratio value of 0.71, CAR is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- A Quick Ratio of 0.71 indicates that CAR may have some problems paying its short term obligations.
- The Quick ratio of CAR (0.71) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- CAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 96.26%, which is quite impressive.
- Measured over the past years, CAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.82% on average per year.
- CAR shows a decrease in Revenue. In the last year, the revenue decreased by -1.22%.
- CAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.15% yearly.
EPS 1Y (TTM)96.26%
EPS 3Y-7.52%
EPS 5Y37.82%
EPS Q2Q%52.03%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%1.12%
3.2 Future
- Based on estimates for the next years, CAR will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.83% on average per year.
- Based on estimates for the next years, CAR will show a small growth in Revenue. The Revenue will grow by 1.11% on average per year.
EPS Next Y-63.2%
EPS Next 2Y-34.05%
EPS Next 3Y-17.83%
EPS Next 5YN/A
Revenue Next Year-0.44%
Revenue Next 2Y0.64%
Revenue Next 3Y1.11%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.48, which indicates a rather cheap valuation of CAR.
- Based on the Price/Earnings ratio, CAR is valued cheaper than 97.62% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CAR to the average of the S&P500 Index (28.82), we can say CAR is valued rather cheaply.
- CAR is valuated correctly with a Price/Forward Earnings ratio of 14.73.
- Based on the Price/Forward Earnings ratio, CAR is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- CAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
- CAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAR is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
- A cheap valuation may be justified as CAR's earnings are expected to decrease with -17.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-34.05%
EPS Next 3Y-17.83%
5. Dividend
5.1 Amount
- CAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AVIS BUDGET GROUP INC / CAR FAQ
What is the fundamental rating for CAR stock?
ChartMill assigns a fundamental rating of 3 / 10 to CAR.
What is the valuation status for CAR stock?
ChartMill assigns a valuation rating of 5 / 10 to AVIS BUDGET GROUP INC (CAR). This can be considered as Fairly Valued.
What is the profitability of CAR stock?
AVIS BUDGET GROUP INC (CAR) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AVIS BUDGET GROUP INC (CAR) stock?
The Price/Earnings (PE) ratio for AVIS BUDGET GROUP INC (CAR) is 5.48 and the Price/Book (PB) ratio is -1.73.
What is the expected EPS growth for AVIS BUDGET GROUP INC (CAR) stock?
The Earnings per Share (EPS) of AVIS BUDGET GROUP INC (CAR) is expected to decline by -63.2% in the next year.