CARVANA CO (CVNA) Stock Fundamental Analysis
NYSE:CVNA - New York Stock Exchange, Inc. - US1468691027 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 123 industry peers in the Specialty Retail industry. CVNA has an excellent financial health rating, but there are some minor concerns on its profitability. CVNA is valued quite expensively, but it does show have an excellent growth rating. These ratings would make CVNA suitable for growth investing!
1. Profitability
1.1 Basic Checks
CVNA had positive earnings in the past year.
CVNA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: CVNA reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 4.48%, CVNA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CVNA has a better Return On Equity (26.46%) than 83.74% of its industry peers.
The Return On Invested Capital of CVNA (14.11%) is better than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 26.46% | ||
| ROIC | 14.11% |
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVNA has a Profit Margin of 2.68%. This is in the better half of the industry: CVNA outperforms 65.85% of its industry peers.
Looking at the Operating Margin, with a value of 8.42%, CVNA belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
With a Gross Margin value of 21.65%, CVNA is not doing good in the industry: 78.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CVNA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 2.68% | ||
| GM | 21.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.8%
GM growth 5Y10.37%
2. Health
2.1 Basic Checks
CVNA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
Compared to 5 years ago, CVNA has more shares outstanding
CVNA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.87 indicates that CVNA is not in any danger for bankruptcy at the moment.
The Altman-Z score of CVNA (8.87) is better than 98.37% of its industry peers.
The Debt to FCF ratio of CVNA is 5.94, which is a neutral value as it means it would take CVNA, 5.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.94, CVNA is doing good in the industry, outperforming 63.41% of the companies in the same industry.
CVNA has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
CVNA's Debt to Equity ratio of 3.55 is on the low side compared to the rest of the industry. CVNA is outperformed by 74.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 8.87 |
ROIC/WACC1.66
WACC8.5%
2.3 Liquidity
CVNA has a Current Ratio of 3.81. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a better Current ratio (3.81) than 94.31% of its industry peers.
CVNA has a Quick Ratio of 2.70. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.70, CVNA belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.81 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 466.06% over the past year.
Looking at the last year, CVNA shows a very strong growth in Revenue. The Revenue has grown by 26.94%.
Measured over the past years, CVNA shows a very strong growth in Revenue. The Revenue has been growing by 28.25% on average per year.
EPS 1Y (TTM)466.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%814.29%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%41.94%
3.2 Future
Based on estimates for the next years, CVNA will show a very strong growth in Earnings Per Share. The EPS will grow by 42.89% on average per year.
CVNA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.05% yearly.
EPS Next Y196.81%
EPS Next 2Y95.17%
EPS Next 3Y66.36%
EPS Next 5Y42.89%
Revenue Next Year32.97%
Revenue Next 2Y27.78%
Revenue Next 3Y25.75%
Revenue Next 5Y18.06%
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 92.18, the valuation of CVNA can be described as expensive.
CVNA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (26.82), we can say CVNA is valued expensively.
Based on the Price/Forward Earnings ratio of 61.50, the valuation of CVNA can be described as expensive.
Based on the Price/Forward Earnings ratio, CVNA is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.21. CVNA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.18 | ||
| Fwd PE | 61.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 65.85% of the companies in the same industry.
CVNA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.99 | ||
| EV/EBITDA | 53.35 |
4.3 Compensation for Growth
CVNA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVNA's earnings are expected to grow with 66.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y95.17%
EPS Next 3Y66.36%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
367.78
-22.39 (-5.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.99%
Inst Owner Change-0.32%
Ins Owners2.83%
Ins Owner Change-2.69%
Market Cap78.76B
Analysts76.43
Price Target328.26 (-10.75%)
Short Float %9.63%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)110.73%
Min EPS beat(2)90.71%
Max EPS beat(2)130.76%
EPS beat(4)4
Avg EPS beat(4)169.37%
Min EPS beat(4)90.71%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)111.76%
EPS beat(12)9
Avg EPS beat(12)81.47%
EPS beat(16)10
Avg EPS beat(16)62.17%
Revenue beat(2)2
Avg Revenue beat(2)4.59%
Min Revenue beat(2)4.24%
Max Revenue beat(2)4.94%
Revenue beat(4)4
Avg Revenue beat(4)4.01%
Min Revenue beat(4)3.05%
Max Revenue beat(4)4.94%
Revenue beat(8)6
Avg Revenue beat(8)4.07%
Revenue beat(12)6
Avg Revenue beat(12)0.45%
Revenue beat(16)10
Avg Revenue beat(16)3%
PT rev (1m)6.76%
PT rev (3m)26.83%
EPS NQ rev (1m)4.66%
EPS NQ rev (3m)38.62%
EPS NY rev (1m)2.58%
EPS NY rev (3m)54.02%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)9.55%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)7.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.18 | ||
| Fwd PE | 61.5 | ||
| P/S | 5.31 | ||
| P/FCF | 82.99 | ||
| P/OCF | 75.08 | ||
| P/B | 52.36 | ||
| P/tB | 53.69 | ||
| EV/EBITDA | 53.35 |
EPS(TTM)3.99
EY1.08%
EPS(NY)5.98
Fwd EY1.63%
FCF(TTM)4.43
FCFY1.2%
OCF(TTM)4.9
OCFY1.33%
SpS69.32
BVpS7.02
TBVpS6.85
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 26.46% | ||
| ROCE | 16.6% | ||
| ROIC | 14.11% | ||
| ROICexc | 18.68% | ||
| ROICexgc | 18.8% | ||
| OM | 8.42% | ||
| PM (TTM) | 2.68% | ||
| GM | 21.65% | ||
| FCFM | 6.39% |
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
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 3Y11.8%
GM growth 5Y10.37%
F-Score7
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 5.94 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 33.78% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 5.53 | ||
| Cash Conversion | 67.85% | ||
| Profit Quality | 238.44% | ||
| Current Ratio | 3.81 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 8.87 |
F-Score7
WACC8.5%
ROIC/WACC1.66
Cap/Depr(3y)83.57%
Cap/Depr(5y)253.76%
Cap/Sales(3y)1.75%
Cap/Sales(5y)3.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)466.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%814.29%
EPS Next Y196.81%
EPS Next 2Y95.17%
EPS Next 3Y66.36%
EPS Next 5Y42.89%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%41.94%
Revenue Next Year32.97%
Revenue Next 2Y27.78%
Revenue Next 3Y25.75%
Revenue Next 5Y18.06%
EBIT growth 1Y551.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year112.74%
EBIT Next 3Y48%
EBIT Next 5Y32.3%
FCF growth 1Y184.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y231.62%
OCF growth 3YN/A
OCF growth 5YN/A