AVIS BUDGET GROUP INC (CAR) Stock Fundamental Analysis
USA - NASDAQ:CAR - US0537741052 - Common Stock
163.28 USD
+1.6 (+0.99%)
163.28 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CAR. CAR was compared to 42 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CAR was profitable.
In the past year CAR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CAR reported negative net income in multiple years.
CAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAR has a Return On Assets of -6.86%. This is in the lower half of the industry: CAR underperforms 76.19% of its industry peers.
CAR has a Return On Invested Capital (3.53%) 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 7.92%.
The 3 year average ROIC (7.81%) for CAR is well above the current ROIC(3.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.86% | ||
| ROE | N/A | ||
| ROIC | 3.53% |
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
The Operating Margin of CAR (10.33%) is better than 76.19% of its industry peers.
In the last couple of years the Operating Margin of CAR has grown nicely.
CAR has a Gross Margin of 60.25%. This is in the better half of the industry: CAR outperforms 71.43% of its industry peers.
CAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.33% | ||
| PM (TTM) | N/A | ||
| GM | 60.25% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAR is still creating some value.
The number of shares outstanding for CAR remains at a similar level compared to 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.
Looking at the Altman-Z score, with a value of 0.62, CAR is doing worse than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.51
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.77 indicates that CAR may have some problems paying its short term obligations.
CAR has a Current ratio of 0.77. This is amonst the worse of the industry: CAR underperforms 83.33% of its industry peers.
A Quick Ratio of 0.77 indicates that CAR may have some problems paying its short term obligations.
CAR has a worse Quick ratio (0.77) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.47%.
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 -2.25%.
CAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.15% yearly.
EPS 1Y (TTM)-14.47%
EPS 3Y-7.52%
EPS 5Y37.82%
EPS Q2Q%-75.61%
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-0.3%
3.2 Future
The Earnings Per Share is expected to decrease by -10.89% on average over the next years. This is quite bad
CAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.74% yearly.
EPS Next Y-56.73%
EPS Next 2Y-26.33%
EPS Next 3Y-10.89%
EPS Next 5YN/A
Revenue Next Year-0.85%
Revenue Next 2Y0.74%
Revenue Next 3Y0.74%
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
CAR is valuated reasonably with a Price/Earnings ratio of 9.06.
Compared to the rest of the industry, the Price/Earnings ratio of CAR indicates a rather cheap valuation: CAR is cheaper than 97.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAR to the average of the S&P500 Index (27.06), we can say CAR is valued rather cheaply.
A Price/Forward Earnings ratio of 16.35 indicates a correct valuation of CAR.
CAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAR is cheaper than 73.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.64. CAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAR indicates a rather cheap valuation: CAR is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
A cheap valuation may be justified as CAR's earnings are expected to decrease with -10.89% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-26.33%
EPS Next 3Y-10.89%
5. Dividend
5.1 Amount
CAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
163.28
+1.6 (+0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners114.13%
Inst Owner Change10.82%
Ins Owners2.45%
Ins Owner Change-0.41%
Market Cap5.75B
Analysts69.23
Price Target148.92 (-8.79%)
Short Float %24.63%
Short Ratio8.15
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)1
Avg EPS beat(2)-25.27%
Min EPS beat(2)-94.65%
Max EPS beat(2)44.1%
EPS beat(4)2
Avg EPS beat(4)551.8%
Min EPS beat(4)-94.65%
Max EPS beat(4)2277.21%
EPS beat(8)4
Avg EPS beat(8)274%
EPS beat(12)8
Avg EPS beat(12)204.61%
EPS beat(16)12
Avg EPS beat(16)172.28%
Revenue beat(2)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.03%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)0.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.93%
Revenue beat(16)8
Avg Revenue beat(16)1.29%
PT rev (1m)-0.68%
PT rev (3m)31.19%
EPS NQ rev (1m)-12.71%
EPS NQ rev (3m)-7.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 16.35 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 1.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.3 |
EPS(TTM)18.03
EY11.04%
EPS(NY)9.98
Fwd EY6.12%
FCF(TTM)-238.93
FCFYN/A
OCF(TTM)99.49
OCFY60.93%
SpS331.32
BVpS-78.01
TBVpS-127.31
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.86% | ||
| ROE | N/A | ||
| ROCE | 4.13% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 3.83% | ||
| OM | 10.33% | ||
| PM (TTM) | N/A | ||
| GM | 60.25% | ||
| FCFM | N/A |
ROA(3y)3.13%
ROA(5y)2.24%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.81%
ROIC(5y)N/A
ROICexc(3y)7.98%
ROICexc(5y)N/A
ROICexgc(3y)8.58%
ROICexgc(5y)N/A
ROCE(3y)9.14%
ROCE(5y)N/A
ROICexcg growth 3Y-19.84%
ROICexcg growth 5Y5.77%
ROICexc growth 3Y-19.02%
ROICexc growth 5Y6.44%
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%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.42 | ||
| Cap/Depr | 254.9% | ||
| Cap/Sales | 102.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.62 |
F-Score5
WACC6.85%
ROIC/WACC0.51
Cap/Depr(3y)418.07%
Cap/Depr(5y)440.26%
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)-14.47%
EPS 3Y-7.52%
EPS 5Y37.82%
EPS Q2Q%-75.61%
EPS Next Y-56.73%
EPS Next 2Y-26.33%
EPS Next 3Y-10.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.25%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-0.3%
Revenue Next Year-0.85%
Revenue Next 2Y0.74%
Revenue Next 3Y0.74%
Revenue Next 5YN/A
EBIT growth 1Y-39.41%
EBIT growth 3Y-11.35%
EBIT growth 5Y11.75%
EBIT Next Year40.45%
EBIT Next 3Y22.35%
EBIT Next 5YN/A
FCF growth 1Y9.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.98%
OCF growth 3Y0.26%
OCF growth 5Y6.35%