CAVA GROUP INC (CAVA) Fundamental Analysis & Valuation
NYSE:CAVA • US1489291021
Current stock price
84.94 USD
-1.21 (-1.4%)
At close:
84.5 USD
-0.44 (-0.52%)
After Hours:
This CAVA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CAVA Profitability Analysis
1.1 Basic Checks
- CAVA had positive earnings in the past year.
- CAVA had a positive operating cash flow in the past year.
- In multiple years CAVA reported negative net income over the last 5 years.
- In the past 5 years CAVA always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.69%, CAVA is in the better half of the industry, outperforming 67.46% of the companies in the same industry.
- CAVA has a better Return On Equity (8.18%) than 63.49% of its industry peers.
- CAVA's Return On Invested Capital of 4.53% is in line compared to the rest of the industry. CAVA outperforms 44.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAVA is significantly below the industry average of 10.56%.
- The 3 year average ROIC (3.46%) for CAVA is below the current ROIC(4.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 8.18% | ||
| ROIC | 4.53% |
ROA(3y)5.73%
ROA(5y)-0.65%
ROE(3y)9.75%
ROE(5y)-2.45%
ROIC(3y)3.46%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 5.40%, CAVA is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 5.10%, CAVA is doing worse than 63.49% of the companies in the same industry.
- CAVA has a Gross Margin of 31.71%. This is in the lower half of the industry: CAVA underperforms 73.81% of its industry peers.
- CAVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.1% | ||
| PM (TTM) | 5.4% | ||
| GM | 31.71% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.66%
GM growth 5YN/A
2. CAVA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 11.35 indicates that CAVA is not in any danger for bankruptcy at the moment.
- CAVA has a better Altman-Z score (11.35) than 97.62% 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 | 11.35 |
ROIC/WACC0.51
WACC8.95%
2.3 Liquidity
- A Current Ratio of 2.65 indicates that CAVA has no problem at all paying its short term obligations.
- CAVA's Current ratio of 2.65 is amongst the best of the industry. CAVA outperforms 91.27% of its industry peers.
- A Quick Ratio of 2.59 indicates that CAVA has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.59, CAVA belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.59 |
3. CAVA Growth Analysis
3.1 Past
- CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
- The Revenue has grown by 22.41% in the past year. This is a very strong growth!
- The Revenue has been growing by 27.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)22.41%
Revenue growth 3Y27.88%
Revenue growth 5YN/A
Sales Q2Q%20.93%
3.2 Future
- Based on estimates for the next years, CAVA will show a very strong growth in Earnings Per Share. The EPS will grow by 26.97% on average per year.
- Based on estimates for the next years, CAVA will show a quite strong growth in Revenue. The Revenue will grow by 19.72% on average per year.
EPS Next Y-2.5%
EPS Next 2Y15.79%
EPS Next 3Y25.09%
EPS Next 5Y26.97%
Revenue Next Year24%
Revenue Next 2Y22.24%
Revenue Next 3Y21.4%
Revenue Next 5Y19.72%
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. CAVA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 157.30, which means the current valuation is very expensive for CAVA.
- 65.08% of the companies in the same industry are cheaper than CAVA, based on the Price/Earnings ratio.
- CAVA is valuated expensively when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 161.33, CAVA can be considered very expensive at the moment.
- CAVA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CAVA is more expensive than 65.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, CAVA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.3 | ||
| Fwd PE | 161.33 |
4.2 Price Multiples
- CAVA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CAVA is more expensive than 82.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CAVA is valued a bit more expensive than 62.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 378.15 | ||
| EV/EBITDA | 71.14 |
4.3 Compensation for Growth
- CAVA's earnings are expected to grow with 25.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.79%
EPS Next 3Y25.09%
5. CAVA Dividend Analysis
5.1 Amount
- CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAVA Fundamentals: All Metrics, Ratios and Statistics
84.94
-1.21 (-1.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-13 2026-05-13
Inst Owners95.91%
Inst Owner Change0%
Ins Owners5.58%
Ins Owner Change0.12%
Market Cap9.89B
Revenue(TTM)1.18B
Net Income(TTM)63.74M
Analysts77.14
Price Target86.76 (2.14%)
Short Float %14.69%
Short Ratio4.38
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)23.23%
Min EPS beat(2)-5.84%
Max EPS beat(2)52.29%
EPS beat(4)3
Avg EPS beat(4)29.47%
Min EPS beat(4)-5.84%
Max EPS beat(4)55.09%
EPS beat(8)6
Avg EPS beat(8)42.61%
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)-0.72%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0.65%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
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)12.67%
PT rev (3m)22.45%
EPS NQ rev (1m)1.85%
EPS NQ rev (3m)6.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.24%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.3 | ||
| Fwd PE | 161.33 | ||
| P/S | 8.38 | ||
| P/FCF | 378.15 | ||
| P/OCF | 53.48 | ||
| P/B | 12.68 | ||
| P/tB | 12.74 | ||
| EV/EBITDA | 71.14 |
EPS(TTM)0.54
EY0.64%
EPS(NY)0.53
Fwd EY0.62%
FCF(TTM)0.22
FCFY0.26%
OCF(TTM)1.59
OCFY1.87%
SpS10.14
BVpS6.7
TBVpS6.67
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 8.18% | ||
| ROCE | 5.03% | ||
| ROIC | 4.53% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 6.77% | ||
| OM | 5.1% | ||
| PM (TTM) | 5.4% | ||
| GM | 31.71% | ||
| FCFM | 2.22% |
ROA(3y)5.73%
ROA(5y)-0.65%
ROE(3y)9.75%
ROE(5y)-2.45%
ROIC(3y)3.46%
ROIC(5y)N/A
ROICexc(3y)5.3%
ROICexc(5y)N/A
ROICexgc(3y)5.32%
ROICexgc(5y)N/A
ROCE(3y)3.84%
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 3Y5.66%
GM growth 5YN/A
F-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 215.45% | ||
| Cap/Sales | 13.45% | ||
| Interest Coverage | 367.13 | ||
| Cash Conversion | 138.07% | ||
| Profit Quality | 41.01% | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.59 | ||
| Altman-Z | 11.35 |
F-Score5
WACC8.95%
ROIC/WACC0.51
Cap/Depr(3y)229.08%
Cap/Depr(5y)211.67%
Cap/Sales(3y)14.57%
Cap/Sales(5y)14.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y-2.5%
EPS Next 2Y15.79%
EPS Next 3Y25.09%
EPS Next 5Y26.97%
Revenue 1Y (TTM)22.41%
Revenue growth 3Y27.88%
Revenue growth 5YN/A
Sales Q2Q%20.93%
Revenue Next Year24%
Revenue Next 2Y22.24%
Revenue Next 3Y21.4%
Revenue Next 5Y19.72%
EBIT growth 1Y23.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year231.7%
EBIT Next 3Y76.73%
EBIT Next 5Y52.97%
FCF growth 1Y-50.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.79%
OCF growth 3Y212.83%
OCF growth 5YN/A
CAVA GROUP INC / CAVA Fundamental Analysis FAQ
What is the ChartMill fundamental rating of CAVA GROUP INC (CAVA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAVA.
What is the valuation status for CAVA stock?
ChartMill assigns a valuation rating of 1 / 10 to CAVA GROUP INC (CAVA). This can be considered as Overvalued.
Can you provide the profitability details for CAVA GROUP INC?
CAVA GROUP INC (CAVA) has a profitability rating of 4 / 10.
How financially healthy is CAVA GROUP INC?
The financial health rating of CAVA GROUP INC (CAVA) is 8 / 10.
Can you provide the expected EPS growth for CAVA stock?
The Earnings per Share (EPS) of CAVA GROUP INC (CAVA) is expected to decline by -2.5% in the next year.