CARVANA CO (CVNA) Stock Fundamental Analysis
NYSE:CVNA - US1468691027 - Common Stock
372.2 USD
+10.08 (+2.78%)
372.24 USD
+0.04 (+0.01%)
Taking everything into account, CVNA scores 5 out of 10 in our fundamental rating. CVNA was compared to 123 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA is valued quite expensively, but it does show have an excellent growth rating. With these ratings, CVNA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year CVNA was profitable.
In the past year CVNA had a positive cash flow from operations.
In multiple years CVNA reported negative net income over the last 5 years.
In multiple years CVNA reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of CVNA (6.01%) is better than 74.80% of its industry peers.
With an excellent Return On Equity value of 32.54%, CVNA belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.05%, CVNA belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 32.54% | ||
| ROIC | 16.05% |
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
With a decent Profit Margin value of 3.46%, CVNA is doing good in the industry, outperforming 71.54% of the companies in the same industry.
The Operating Margin of CVNA (9.23%) is better than 82.11% of its industry peers.
Looking at the Gross Margin, with a value of 21.89%, CVNA is doing worse than 77.24% of the companies in the same industry.
In the last couple of years the Gross Margin of CVNA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 3.46% | ||
| GM | 21.89% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVNA 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
The debt/assets ratio for CVNA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.78 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a Altman-Z score of 8.78. This is amongst the best in the industry. CVNA outperforms 98.37% of its industry peers.
The Debt to FCF ratio of CVNA is 9.28, which is on the high side as it means it would take CVNA, 9.28 years of fcf income to pay off all of its debts.
CVNA's Debt to FCF ratio of 9.28 is in line compared to the rest of the industry. CVNA outperforms 56.91% of its industry peers.
A Debt/Equity ratio of 3.12 is on the high side and indicates that CVNA has dependencies on debt financing.
With a Debt to Equity ratio value of 3.12, CVNA is not doing good in the industry: 74.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 8.78 |
ROIC/WACC1.73
WACC9.27%
2.3 Liquidity
CVNA has a Current Ratio of 4.00. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Current ratio of 4.00. This is amongst the best in the industry. CVNA outperforms 94.31% of its industry peers.
A Quick Ratio of 2.58 indicates that CVNA has no problem at all paying its short term obligations.
The Quick ratio of CVNA (2.58) is better than 95.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 466.06% over the past year.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.48%.
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)39.48%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%41.94%
3.2 Future
CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.10% yearly.
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 27.61% on average per year.
EPS Next Y212.09%
EPS Next 2Y103.61%
EPS Next 3Y75.66%
EPS Next 5Y47.1%
Revenue Next Year39.58%
Revenue Next 2Y32.59%
Revenue Next 3Y30.25%
Revenue Next 5Y27.61%
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
Based on the Price/Earnings ratio of 93.28, the valuation of CVNA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CVNA is on the same level as its industry peers.
CVNA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.08.
The Price/Forward Earnings ratio is 57.19, which means the current valuation is very expensive for CVNA.
CVNA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CVNA is more expensive than 60.16% of the companies in the same industry.
CVNA'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 | 93.28 | ||
| Fwd PE | 57.19 |
4.2 Price Multiples
63.41% of the companies in the same industry are cheaper than CVNA, based on the Enterprise Value to EBITDA ratio.
CVNA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.24 | ||
| EV/EBITDA | 45.65 |
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 75.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y103.61%
EPS Next 3Y75.66%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
372.2
+10.08 (+2.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.9%
Inst Owner Change-5.76%
Ins Owners2.79%
Ins Owner Change-3.84%
Market Cap80.10B
Analysts76.43
Price Target413.77 (11.17%)
Short Float %9.41%
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)72.04%
Min EPS beat(2)13.33%
Max EPS beat(2)130.76%
EPS beat(4)4
Avg EPS beat(4)96.22%
Min EPS beat(4)13.33%
Max EPS beat(4)150.09%
EPS beat(8)7
Avg EPS beat(8)106.78%
EPS beat(12)10
Avg EPS beat(12)84.62%
EPS beat(16)10
Avg EPS beat(16)52.68%
Revenue beat(2)2
Avg Revenue beat(2)3.82%
Min Revenue beat(2)3.4%
Max Revenue beat(2)4.24%
Revenue beat(4)4
Avg Revenue beat(4)4.09%
Min Revenue beat(4)3.4%
Max Revenue beat(4)4.94%
Revenue beat(8)6
Avg Revenue beat(8)2.93%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)10
Avg Revenue beat(16)1.15%
PT rev (1m)26.05%
PT rev (3m)58.23%
EPS NQ rev (1m)6.95%
EPS NQ rev (3m)42.37%
EPS NY rev (1m)5.15%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)7.82%
Revenue NQ rev (3m)15.99%
Revenue NY rev (1m)5.47%
Revenue NY rev (3m)6.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.28 | ||
| Fwd PE | 57.19 | ||
| P/S | 4.92 | ||
| P/FCF | 130.24 | ||
| P/OCF | 110.63 | ||
| P/B | 46.3 | ||
| P/tB | 47.23 | ||
| EV/EBITDA | 45.65 |
EPS(TTM)3.99
EY1.07%
EPS(NY)6.51
Fwd EY1.75%
FCF(TTM)2.86
FCFY0.77%
OCF(TTM)3.36
OCFY0.9%
SpS75.62
BVpS8.04
TBVpS7.88
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 32.54% | ||
| ROCE | 18.9% | ||
| ROIC | 16.05% | ||
| ROICexc | 20.89% | ||
| ROICexgc | 21% | ||
| OM | 9.23% | ||
| PM (TTM) | 3.46% | ||
| GM | 21.89% | ||
| FCFM | 3.78% |
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 Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 9.28 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | 40.45% | ||
| Profit Quality | 109.24% | ||
| Current Ratio | 4 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z | 8.78 |
F-Score7
WACC9.27%
ROIC/WACC1.73
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 Y212.09%
EPS Next 2Y103.61%
EPS Next 3Y75.66%
EPS Next 5Y47.1%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%41.94%
Revenue Next Year39.58%
Revenue Next 2Y32.59%
Revenue Next 3Y30.25%
Revenue Next 5Y27.61%
EBIT growth 1Y274.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year120.61%
EBIT Next 3Y50.43%
EBIT Next 5Y37.48%
FCF growth 1Y203.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y283.76%
OCF growth 3YN/A
OCF growth 5YN/A