CAVA GROUP INC (CAVA) Stock Fundamental Analysis
NYSE:CAVA - US1489291021 - Common Stock
67.02 USD
+1.57 (+2.4%)
67 USD
-0.02 (-0.03%)
Overall CAVA gets a fundamental rating of 5 out of 10. We evaluated CAVA against 131 industry peers in the Hotels, Restaurants & Leisure industry. No worries on liquidiy or solvency for CAVA as it has an excellent financial health rating, but there are worries on the profitability. CAVA shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year CAVA was profitable.
In the past year CAVA had a positive cash flow from operations.
1.2 Ratios
With an excellent Return On Assets value of 10.89%, CAVA belongs to the best of the industry, outperforming 87.02% of the companies in the same industry.
CAVA's Return On Equity of 18.74% is fine compared to the rest of the industry. CAVA outperforms 77.86% of its industry peers.
CAVA has a Return On Invested Capital of 4.09%. This is comparable to the rest of the industry: CAVA outperforms 41.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 18.74% | ||
| ROIC | 4.09% |
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
Looking at the Profit Margin, with a value of 12.98%, CAVA belongs to the top of the industry, outperforming 82.44% of the companies in the same industry.
The Operating Margin of CAVA (5.44%) is worse than 63.36% of its industry peers.
CAVA has a worse Gross Margin (32.26%) than 72.52% of its industry peers.
CAVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 32.26% |
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.
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.
2.2 Solvency
An Altman-Z score of 9.56 indicates that CAVA is not in any danger for bankruptcy at the moment.
The Altman-Z score of CAVA (9.56) is better than 94.66% 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 | 9.56 |
ROIC/WACC0.45
WACC9.09%
2.3 Liquidity
CAVA has a Current Ratio of 2.72. 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 2.72, CAVA belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
CAVA has a Quick Ratio of 2.67. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.67, CAVA belongs to the best of the industry, outperforming 93.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.76% over the past year.
Looking at the last year, CAVA shows a very strong growth in Revenue. The Revenue has grown by 28.21%.
CAVA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.44% yearly.
EPS 1Y (TTM)56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.88%
Revenue 1Y (TTM)28.21%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%20.18%
3.2 Future
The Earnings Per Share is expected to grow by 26.72% 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 19.74% on average per year.
EPS Next Y15.57%
EPS Next 2Y18.34%
EPS Next 3Y22.63%
EPS Next 5Y26.72%
Revenue Next Year22.88%
Revenue Next 2Y22.27%
Revenue Next 3Y21.94%
Revenue Next 5Y19.74%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CAVA is valuated quite expensively with a Price/Earnings ratio of 115.55.
Based on the Price/Earnings ratio, CAVA is valued a bit more expensive than the industry average as 63.36% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CAVA to the average of the S&P500 Index (27.08), we can say CAVA is valued expensively.
CAVA is valuated quite expensively with a Price/Forward Earnings ratio of 97.67.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than 65.65% of the companies in the same industry.
CAVA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.55 | ||
| Fwd PE | 97.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAVA indicates a rather expensive valuation: CAVA more expensive than 80.15% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CAVA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 164 | ||
| EV/EBITDA | 57.9 |
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 22.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.42
PEG (5Y)N/A
EPS Next 2Y18.34%
EPS Next 3Y22.63%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.02
+1.57 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners80.43%
Inst Owner Change-1.27%
Ins Owners5.67%
Ins Owner Change0.09%
Market Cap7.77B
Analysts82.4
Price Target94.37 (40.81%)
Short Float %11.57%
Short Ratio2.55
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)2
Avg EPS beat(2)35.7%
Min EPS beat(2)16.32%
Max EPS beat(2)55.09%
EPS beat(4)3
Avg EPS beat(4)20.02%
Min EPS beat(4)-24.49%
Max EPS beat(4)55.09%
EPS beat(8)7
Avg EPS beat(8)198.69%
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)-2.05%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-0.42%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
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)-17.04%
PT rev (3m)-20.21%
EPS NQ rev (1m)-16.59%
EPS NQ rev (3m)-18.34%
EPS NY rev (1m)-3.59%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.55 | ||
| Fwd PE | 97.67 | ||
| P/S | 7.17 | ||
| P/FCF | 164 | ||
| P/OCF | 45.02 | ||
| P/B | 10.35 | ||
| P/tB | 10.4 | ||
| EV/EBITDA | 57.9 |
EPS(TTM)0.58
EY0.87%
EPS(NY)0.69
Fwd EY1.02%
FCF(TTM)0.41
FCFY0.61%
OCF(TTM)1.49
OCFY2.22%
SpS9.35
BVpS6.47
TBVpS6.44
PEG (NY)7.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 18.74% | ||
| ROCE | 5.18% | ||
| ROIC | 4.09% | ||
| ROICexc | 6.19% | ||
| ROICexgc | 6.22% | ||
| OM | 5.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 32.26% | ||
| FCFM | 4.37% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 187.14% | ||
| Cap/Sales | 11.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.11% | ||
| Profit Quality | 33.69% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 9.56 |
F-Score6
WACC9.09%
ROIC/WACC0.45
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)56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.88%
EPS Next Y15.57%
EPS Next 2Y18.34%
EPS Next 3Y22.63%
EPS Next 5Y26.72%
Revenue 1Y (TTM)28.21%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%20.18%
Revenue Next Year22.88%
Revenue Next 2Y22.27%
Revenue Next 3Y21.94%
Revenue Next 5Y19.74%
EBIT growth 1Y79.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.2%
EBIT Next 3Y77.53%
EBIT Next 5Y54.69%
FCF growth 1Y226.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.83%
OCF growth 3Y262.05%
OCF growth 5YN/A