AVIS BUDGET GROUP INC (CAR)
US0537741052 - Common Stock
Overall CAR gets a fundamental rating of 4 out of 10. We evaluated CAR against 36 industry peers in the Ground Transportation industry. While CAR has a great profitability rating, there are quite some concerns on its financial health. CAR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CAR was profitable.
CAR had a positive operating cash flow in the past year.
CAR had positive earnings in 4 of the past 5 years.
In the past 5 years CAR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.01%, CAR is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.23%, CAR is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAR is in line with the industry average of 7.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | N/A | ||
| ROIC | 6.23% |
ROA(3y)7.12%
ROA(5y)3.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.66%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.59%, CAR belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
CAR's Profit Margin has improved in the last couple of years.
The Operating Margin of CAR (19.26%) is better than 80.56% of its industry peers.
CAR's Operating Margin has improved in the last couple of years.
CAR has a better Gross Margin (55.22%) than 61.11% of its industry peers.
CAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.26% | ||
| PM (TTM) | 13.59% | ||
| GM | 55.22% |
OM growth 3YN/A
OM growth 5Y17.51%
PM growth 3YN/A
PM growth 5Y49.69%
GM growth 3Y15.77%
GM growth 5Y5.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAR is still creating some value.
Compared to 1 year ago, CAR has less shares outstanding
The number of shares outstanding for CAR has been reduced compared to 5 years ago.
Compared to 1 year ago, CAR has a worse debt to assets ratio.
2.2 Solvency
CAR has an Altman-Z score of 0.81. This is a bad value and indicates that CAR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CAR (0.81) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC1.14
WACC5.49%
2.3 Liquidity
CAR has a Current Ratio of 0.80. This is a bad value and indicates that CAR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CAR (0.80) is worse than 77.78% of its industry peers.
CAR has a Quick Ratio of 0.80. This is a bad value and indicates that CAR is not financially healthy enough and could expect problems in meeting its short term obligations.
CAR has a worse Quick ratio (0.80) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.65%.
The Earnings Per Share has been growing by 63.12% on average over the past years. This is a very strong growth
CAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.12%.
CAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.65% yearly.
EPS 1Y (TTM)-26.65%
EPS 3YN/A
EPS 5Y63.12%
EPS growth Q2Q-32.12%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y30.51%
Revenue growth 5Y5.65%
Revenue growth Q2Q-0.25%
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 -23.35% on average per year.
CAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-61.02%
EPS Next 2Y-34.99%
EPS Next 3Y-23.35%
EPS Next 5YN/A
Revenue Next Year-3.49%
Revenue Next 2Y-0.34%
Revenue Next 3Y1.65%
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
A Price/Earnings ratio of 2.22 indicates a rather cheap valuation of CAR.
100.00% of the companies in the same industry are more expensive than CAR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.67, CAR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.70, which indicates a rather cheap valuation of CAR.
94.44% of the companies in the same industry are more expensive than CAR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CAR to the average of the S&P500 Index (21.02), we can say CAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 5.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAR is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
The decent profitability rating of CAR may justify a higher PE ratio.
A cheap valuation may be justified as CAR's earnings are expected to decrease with -23.35% in the coming years.
PEG (NY)N/A
PEG (5Y)0.04
EPS Next 2Y-34.99%
EPS Next 3Y-23.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.93%, CAR is a good candidate for dividend investing.
The stock price of CAR dropped by -41.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CAR's Dividend Yield is rather good when compared to the industry average which is at 1.74. CAR pays more dividend than 100.00% of the companies in the same industry.
CAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.93% |
5.2 History
The dividend of CAR is nicely growing with an annual growth rate of 23.82%!
CAR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)23.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
21.75% of the earnings are spent on dividend by CAR. This is a low number and sustainable payout ratio.
DP21.75%
EPS Next 2Y-34.99%
EPS Next 3Y-23.35%
AVIS BUDGET GROUP INC
NASDAQ:CAR (5/1/2024, 4:26:08 PM)
After market: 101 +6.25 (+6.6%)94.75
-0.7 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 5.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.26% | ||
| PM (TTM) | 13.59% | ||
| GM | 55.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-26.65%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-61.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.12%
Revenue growth 3Y30.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y