CAVA GROUP INC (CAVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAVA - US1489291021 - Common Stock
48.92 USD
+5.33 (+12.23%)
49.2608 USD
+0.34 (+0.7%)
Taking everything into account, CAVA scores 5 out of 10 in our fundamental rating. CAVA was compared to 132 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
CAVA's Return On Assets of 10.40% is amongst the best of the industry. CAVA outperforms 82.71% of its industry peers.
Looking at the Return On Equity, with a value of 17.87%, CAVA is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
CAVA has a Return On Invested Capital (4.18%) which is comparable to the rest of the industry.
| 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 78.20% of its industry peers.
CAVA has a worse Operating Margin (5.44%) than 60.15% of its industry peers.
With a Gross Margin value of 32.01%, CAVA is not doing good in the industry: 73.68% 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 | 5.44% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAVA is destroying value.
CAVA has more shares outstanding than it did 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 7.13 indicates that CAVA is not in any danger for bankruptcy at the moment.
CAVA has a better Altman-Z score (7.13) than 93.23% 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 | 7.13 |
ROIC/WACC0.48
WACC8.7%
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.
With an excellent Current ratio value of 2.69, CAVA belongs to the best of the industry, outperforming 92.48% 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.
CAVA has a better Quick ratio (2.63) than 92.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.57% over the past year.
The Revenue has grown by 23.93% in the past year. This is a very strong growth!
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)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 26.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.96% on average over the next years. This is quite good.
EPS Next Y15.36%
EPS Next 2Y17.46%
EPS Next 3Y21.92%
EPS Next 5Y26.78%
Revenue Next Year22.57%
Revenue Next 2Y22.23%
Revenue Next 3Y21.69%
Revenue Next 5Y19.96%
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
A Price/Earnings ratio of 88.95 indicates a quite expensive valuation of CAVA.
CAVA's Price/Earnings ratio is a bit more expensive when compared to the industry. CAVA is more expensive than 62.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. CAVA is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 72.37, the valuation of CAVA can be described as expensive.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than 65.41% of the companies in the same industry.
CAVA is valuated expensively when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.95 | ||
| Fwd PE | 72.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAVA is valued a bit more expensive than 78.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAVA is valued a bit more expensive than 60.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 223.46 | ||
| EV/EBITDA | 39.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAVA does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as CAVA's earnings are expected to grow with 21.92% in the coming years.
PEG (NY)5.79
PEG (5Y)N/A
EPS Next 2Y17.46%
EPS Next 3Y21.92%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.92
+5.33 (+12.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.7%
Inst Owner Change2.07%
Ins Owners5.65%
Ins Owner Change-0.13%
Market Cap5.67B
Revenue(TTM)1.13B
Net Income(TTM)137.44M
Analysts80
Price Target71.48 (46.12%)
Short Float %13.14%
Short Ratio3.31
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)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)-24.26%
PT rev (3m)-24.26%
EPS NQ rev (1m)-50.74%
EPS NQ rev (3m)-51.5%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-3.08%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.95 | ||
| Fwd PE | 72.37 | ||
| P/S | 5.01 | ||
| P/FCF | 223.46 | ||
| P/OCF | 32.53 | ||
| P/B | 7.38 | ||
| P/tB | 7.41 | ||
| EV/EBITDA | 39.3 |
EPS(TTM)0.55
EY1.12%
EPS(NY)0.68
Fwd EY1.38%
FCF(TTM)0.22
FCFY0.45%
OCF(TTM)1.5
OCFY3.07%
SpS9.76
BVpS6.63
TBVpS6.6
PEG (NY)5.79
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 | 7.13 |
F-Score6
WACC8.7%
ROIC/WACC0.48
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 Y15.36%
EPS Next 2Y17.46%
EPS Next 3Y21.92%
EPS Next 5Y26.78%
Revenue 1Y (TTM)23.93%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%19.86%
Revenue Next Year22.57%
Revenue Next 2Y22.23%
Revenue Next 3Y21.69%
Revenue Next 5Y19.96%
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year246.76%
EBIT Next 3Y77.38%
EBIT Next 5Y51.84%
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 15.36% in the next year.