CAVA GROUP INC (CAVA) Stock Fundamental Analysis
NYSE:CAVA - New York Stock Exchange, Inc. - US1489291021 - Common Stock - Currency: USD
Overall CAVA gets a fundamental rating of 5 out of 10. We evaluated CAVA against 135 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 expensively, but it does show have an excellent growth rating.
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
The Return On Assets of CAVA (11.14%) is better than 87.41% of its industry peers.
Looking at the Return On Equity, with a value of 18.74%, CAVA is in the better half of the industry, outperforming 77.04% of the companies in the same industry.
With a Return On Invested Capital value of 3.71%, CAVA is not doing good in the industry: 60.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 18.74% | ||
| ROIC | 3.71% |
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 Profit Margin of 13.52%. This is amongst the best in the industry. CAVA outperforms 83.70% of its industry peers.
CAVA has a worse Operating Margin (5.06%) than 65.19% of its industry peers.
With a Gross Margin value of 32.34%, CAVA is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CAVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.06% | ||
| PM (TTM) | 13.52% | ||
| GM | 32.34% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAVA is destroying value.
The number of shares outstanding for CAVA has been increased compared to 1 year ago.
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 13.93 indicates that CAVA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.93, CAVA belongs to the top of the industry, outperforming 99.26% of the companies in the same industry.
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 | 13.93 |
ROIC/WACC0.41
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.97 indicates that CAVA has no problem at all paying its short term obligations.
CAVA has a better Current ratio (2.97) than 94.81% of its industry peers.
CAVA has a Quick Ratio of 2.91. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
CAVA has a better Quick ratio (2.91) than 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.90%, which is quite impressive.
Looking at the last year, CAVA shows a very strong growth in Revenue. The Revenue has grown by 32.25%.
Measured over the past years, CAVA shows a very strong growth in Revenue. The Revenue has been growing by 24.44% on average per year.
EPS 1Y (TTM)43.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.12%
3.2 Future
The Earnings Per Share is expected to grow by 28.68% on average over the next years. This is a very strong growth
Based on estimates for the next years, CAVA will show a quite strong growth in Revenue. The Revenue will grow by 19.77% on average per year.
EPS Next Y14%
EPS Next 2Y21.64%
EPS Next 3Y25.97%
EPS Next 5Y28.68%
Revenue Next Year23.39%
Revenue Next 2Y22.18%
Revenue Next 3Y22.17%
Revenue Next 5Y19.77%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 141.85, CAVA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CAVA is valued a bit more expensive than 64.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. CAVA is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 115.43, which means the current valuation is very expensive for CAVA.
68.89% of the companies in the same industry are cheaper than CAVA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CAVA to the average of the S&P500 Index (21.94), we can say CAVA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.85 | ||
| Fwd PE | 115.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAVA is valued expensively inside the industry as 83.70% of the companies are valued cheaper.
66.67% of the companies in the same industry are cheaper than CAVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 182.99 | ||
| EV/EBITDA | 91.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CAVA's earnings are expected to grow with 25.97% in the coming years.
PEG (NY)10.13
PEG (5Y)N/A
EPS Next 2Y21.64%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
83.69
-5.69 (-6.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.19%
Inst Owner Change10.99%
Ins Owners8.3%
Ins Owner Change-2.5%
Market Cap9.68B
Analysts82.4
Price Target118.27 (41.32%)
Short Float %9.31%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)4.34%
Min EPS beat(2)-24.49%
Max EPS beat(2)33.18%
EPS beat(4)3
Avg EPS beat(4)55.75%
Min EPS beat(4)-24.49%
Max EPS beat(4)181.32%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)2.33%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)4.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-6.11%
PT rev (3m)-21.96%
EPS NQ rev (1m)4.96%
EPS NQ rev (3m)-18.23%
EPS NY rev (1m)1.66%
EPS NY rev (3m)-11.76%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.85 | ||
| Fwd PE | 115.43 | ||
| P/S | 10.04 | ||
| P/FCF | 182.99 | ||
| P/OCF | 60.11 | ||
| P/B | 13.92 | ||
| P/tB | 13.98 | ||
| EV/EBITDA | 91.39 |
EPS(TTM)0.59
EY0.7%
EPS(NY)0.73
Fwd EY0.87%
FCF(TTM)0.46
FCFY0.55%
OCF(TTM)1.39
OCFY1.66%
SpS8.33
BVpS6.01
TBVpS5.99
PEG (NY)10.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 18.74% | ||
| ROCE | 4.7% | ||
| ROIC | 3.71% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 5.77% | ||
| OM | 5.06% | ||
| PM (TTM) | 13.52% | ||
| GM | 32.34% | ||
| FCFM | 5.49% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 179.16% | ||
| Cap/Sales | 11.22% | ||
| Interest Coverage | 231.06 | ||
| Cash Conversion | 147.59% | ||
| Profit Quality | 40.59% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 13.93 |
F-Score6
WACC9.12%
ROIC/WACC0.41
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)43.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
EPS Next Y14%
EPS Next 2Y21.64%
EPS Next 3Y25.97%
EPS Next 5Y28.68%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.12%
Revenue Next Year23.39%
Revenue Next 2Y22.18%
Revenue Next 3Y22.17%
Revenue Next 5Y19.77%
EBIT growth 1Y210.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year253.03%
EBIT Next 3Y79.76%
EBIT Next 5Y54.02%
FCF growth 1Y226.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.83%
OCF growth 3Y262.05%
OCF growth 5YN/A