AVIS BUDGET GROUP INC (CAR) Stock Fundamental Analysis
NASDAQ:CAR - Nasdaq - US0537741052 - Common Stock - Currency: USD
Taking everything into account, CAR scores 3 out of 10 in our fundamental rating. CAR was compared to 39 industry peers in the Ground Transportation industry. While CAR is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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.
CAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAR's Return On Assets of -7.62% is on the low side compared to the rest of the industry. CAR is outperformed by 82.05% of its industry peers.
CAR has a Return On Invested Capital (4.22%) which is in line with its industry peers.
CAR had an Average Return On Invested Capital over the past 3 years of 7.86%. This is in line with the industry average of 8.06%.
| 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 better Operating Margin (10.86%) than 74.36% of its industry peers.
CAR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.33%, CAR is doing good in the industry, outperforming 71.79% of the companies in the same industry.
In the last couple of years the Gross Margin of CAR has grown nicely.
| 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.
The number of shares outstanding for CAR remains at a similar level compared to 1 year ago.
CAR has less shares outstanding than it did 5 years ago.
CAR has a worse debt/assets ratio than last year.
2.2 Solvency
CAR has an Altman-Z score of 0.65. 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 0.65, CAR is doing worse than 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.65
WACC6.46%
2.3 Liquidity
CAR has a Current Ratio of 0.64. This is a bad value and indicates that CAR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, CAR is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that CAR may have some problems paying its short term obligations.
The Quick ratio of CAR (0.64) is worse than 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for CAR have decreased strongly by -42.11% in the last year.
The Earnings Per Share has been growing by 37.82% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.78% in the past 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
Based on estimates for the next years, CAR will show a decrease in Earnings Per Share. The EPS will decrease by -8.86% on average per year.
CAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.66% yearly.
EPS Next Y-46.54%
EPS Next 2Y-18.8%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.83, which indicates a rather cheap valuation of CAR.
97.44% 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 26.60, CAR is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.32, the valuation of CAR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAR indicates a rather cheap valuation: CAR is cheaper than 87.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CAR to the average of the S&P500 Index (22.39), we can say CAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
CAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAR is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.31 |
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)0.18
EPS Next 2Y-18.8%
EPS Next 3Y-8.86%
5. Dividend
5.1 Amount
No dividends for CAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
125.21
-1.7 (-1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners101.72%
Inst Owner Change12.52%
Ins Owners2.42%
Ins Owner Change1.82%
Market Cap4.41B
Analysts76.92
Price Target113.51 (-9.34%)
Short Float %20.38%
Short Ratio4
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)1.83%
PT rev (3m)0.78%
EPS NQ rev (1m)-32.66%
EPS NQ rev (3m)-32.66%
EPS NY rev (1m)11.92%
EPS NY rev (3m)6.86%
Revenue NQ rev (1m)-2.86%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-1.9%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | 1.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)18.34
EY14.65%
EPS(NY)12.13
Fwd EY9.69%
FCF(TTM)-176.16
FCFYN/A
OCF(TTM)100.82
OCFY80.52%
SpS331.57
BVpS-80.19
TBVpS-128.19
PEG (NY)N/A
PEG (5Y)0.18
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 | 0.65 |
F-Score5
WACC6.46%
ROIC/WACC0.65
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-18.8%
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%