CAVA GROUP INC (CAVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAVA - US1489291021 - Common Stock
51.92 USD
-1.23 (-2.31%)
51.92 USD
0 (0%)
CAVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. CAVA has a great financial health rating, but its profitability evaluates not so good. CAVA is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year CAVA was profitable.
CAVA had a positive operating cash flow in the past year.
1.2 Ratios
With an excellent Return On Assets value of 10.40%, CAVA belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
CAVA has a Return On Equity of 17.87%. This is in the better half of the industry: CAVA outperforms 75.00% of its industry peers.
CAVA's Return On Invested Capital of 4.18% is in line compared to the rest of the industry. CAVA outperforms 46.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.4% | ||
| ROE | 17.87% | ||
| ROIC | 4.18% |
ROA(3y)0.8%
ROA(5y)N/A
ROE(3y)-2.18%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CAVA has a better Profit Margin (12.14%) than 78.79% of its industry peers.
CAVA's Operating Margin of 5.44% is in line compared to the rest of the industry. CAVA outperforms 40.91% of its industry peers.
CAVA's Gross Margin of 32.01% is on the low side compared to the rest of the industry. CAVA is outperformed by 74.24% of its industry peers.
In the last couple of years the Gross Margin of CAVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.44% | ||
| PM (TTM) | 12.14% | ||
| GM | 32.01% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.15%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAVA is destroying value.
Compared to 1 year ago, CAVA has more shares outstanding
CAVA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.67 indicates that CAVA is not in any danger for bankruptcy at the moment.
CAVA's Altman-Z score of 7.67 is amongst the best of the industry. CAVA outperforms 92.42% of its industry peers.
There is no outstanding debt for CAVA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.67 |
ROIC/WACC0.47
WACC8.83%
2.3 Liquidity
CAVA has a Current Ratio of 2.69. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.69, CAVA belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CAVA has a Quick Ratio of 2.63. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.63, CAVA belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.57%, which is quite good.
Looking at the last year, CAVA shows a very strong growth in Revenue. The Revenue has grown by 23.93%.
The Revenue has been growing by 24.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)23.93%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%19.86%
3.2 Future
The Earnings Per Share is expected to grow by 21.46% on average over the next years. This is a very strong growth
CAVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.32% yearly.
EPS Next Y9.96%
EPS Next 2Y9.54%
EPS Next 3Y16%
EPS Next 5Y21.46%
Revenue Next Year21.76%
Revenue Next 2Y21.14%
Revenue Next 3Y20.76%
Revenue Next 5Y19.32%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 94.40, the valuation of CAVA can be described as expensive.
Based on the Price/Earnings ratio, CAVA is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
CAVA is valuated expensively when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 88.30, which means the current valuation is very expensive for CAVA.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than the industry average as 65.15% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CAVA to the average of the S&P500 Index (23.78), we can say CAVA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.4 | ||
| Fwd PE | 88.3 |
4.2 Price Multiples
CAVA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CAVA is more expensive than 80.30% of the companies in the same industry.
CAVA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 237.24 | ||
| EV/EBITDA | 43.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CAVA's earnings are expected to grow with 16.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.48
PEG (5Y)N/A
EPS Next 2Y9.54%
EPS Next 3Y16%
5. Dividend
5.1 Amount
No dividends for CAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
51.92
-1.23 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.51%
Inst Owner Change2.98%
Ins Owners5.6%
Ins Owner Change-0.1%
Market Cap6.02B
Revenue(TTM)1.13B
Net Income(TTM)137.44M
Analysts79.31
Price Target71.48 (37.67%)
Short Float %14.56%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-5.84%
Max EPS beat(2)16.32%
EPS beat(4)2
Avg EPS beat(4)10.27%
Min EPS beat(4)-24.49%
Max EPS beat(4)55.09%
EPS beat(8)6
Avg EPS beat(8)86.09%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-2.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)-0.42%
Revenue beat(8)3
Avg Revenue beat(8)0.36%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-19.96%
PT rev (3m)-24.26%
EPS NQ rev (1m)-10.21%
EPS NQ rev (3m)-53.3%
EPS NY rev (1m)-4.69%
EPS NY rev (3m)-4.86%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-3.4%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.4 | ||
| Fwd PE | 88.3 | ||
| P/S | 5.32 | ||
| P/FCF | 237.24 | ||
| P/OCF | 34.53 | ||
| P/B | 7.83 | ||
| P/tB | 7.87 | ||
| EV/EBITDA | 43.04 |
EPS(TTM)0.55
EY1.06%
EPS(NY)0.59
Fwd EY1.13%
FCF(TTM)0.22
FCFY0.42%
OCF(TTM)1.5
OCFY2.9%
SpS9.76
BVpS6.63
TBVpS6.6
PEG (NY)9.48
PEG (5Y)N/A
Graham Number9.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.4% | ||
| ROE | 17.87% | ||
| ROCE | 5.29% | ||
| ROIC | 4.18% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.3% | ||
| OM | 5.44% | ||
| PM (TTM) | 12.14% | ||
| GM | 32.01% | ||
| FCFM | 2.24% |
ROA(3y)0.8%
ROA(5y)N/A
ROE(3y)-2.18%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.15%
GM growth 5YN/A
F-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 212.17% | ||
| Cap/Sales | 13.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.28% | ||
| Profit Quality | 18.47% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 7.67 |
F-Score6
WACC8.83%
ROIC/WACC0.47
Cap/Depr(3y)238.66%
Cap/Depr(5y)N/A
Cap/Sales(3y)16.25%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y9.96%
EPS Next 2Y9.54%
EPS Next 3Y16%
EPS Next 5Y21.46%
Revenue 1Y (TTM)23.93%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%19.86%
Revenue Next Year21.76%
Revenue Next 2Y21.14%
Revenue Next 3Y20.76%
Revenue Next 5Y19.32%
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year234.01%
EBIT Next 3Y72.49%
EBIT Next 5Y51.85%
FCF growth 1Y138.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y135.99%
OCF growth 3Y262.05%
OCF growth 5YN/A
CAVA GROUP INC / CAVA FAQ
What is the ChartMill fundamental rating of CAVA GROUP INC (CAVA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAVA.
Can you provide the valuation status for CAVA GROUP INC?
ChartMill assigns a valuation rating of 1 / 10 to CAVA GROUP INC (CAVA). This can be considered as Overvalued.
How profitable is CAVA GROUP INC (CAVA) stock?
CAVA GROUP INC (CAVA) has a profitability rating of 3 / 10.
Can you provide the financial health for CAVA stock?
The financial health rating of CAVA GROUP INC (CAVA) is 8 / 10.
What is the expected EPS growth for CAVA GROUP INC (CAVA) stock?
The Earnings per Share (EPS) of CAVA GROUP INC (CAVA) is expected to grow by 9.96% in the next year.