CARVANA CO (CVNA) Stock Fundamental Analysis
USA - NYSE:CVNA - US1468691027 - Common Stock
318.31 USD
-0.23 (-0.07%)
319.75 USD
+1.44 (+0.45%)
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CVNA get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
CVNA has a better Return On Assets (6.38%) than 76.23% of its industry peers.
CVNA's Return On Equity of 27.60% is amongst the best of the industry. CVNA outperforms 85.25% of its industry peers.
CVNA has a better Return On Invested Capital (17.57%) than 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.6% | ||
| ROIC | 17.57% |
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 3.44%. This is in the better half of the industry: CVNA outperforms 71.31% of its industry peers.
Looking at the Operating Margin, with a value of 9.40%, CVNA belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
The Gross Margin of CVNA (21.37%) is worse than 80.33% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 3.44% | ||
| GM | 21.37% |
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 well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CVNA has more shares outstanding
CVNA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVNA has an improved debt to assets ratio.
2.2 Solvency
CVNA has an Altman-Z score of 8.31. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.31, CVNA belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
The Debt to FCF ratio of CVNA is 9.53, which is on the high side as it means it would take CVNA, 9.53 years of fcf income to pay off all of its debts.
CVNA has a Debt to FCF ratio (9.53) which is in line with its industry peers.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.14, CVNA is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 8.31 |
ROIC/WACC1.95
WACC9.02%
2.3 Liquidity
CVNA has a Current Ratio of 4.05. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA's Current ratio of 4.05 is amongst the best of the industry. CVNA outperforms 95.08% of its industry peers.
A Quick Ratio of 2.55 indicates that CVNA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.55, CVNA belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43700.00% over the past year.
Looking at the last year, CVNA shows a very strong growth in Revenue. The Revenue has grown by 45.55%.
The Revenue has been growing by 28.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)43700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.94%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
3.2 Future
CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.65% yearly.
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 28.13% on average per year.
EPS Next Y218.89%
EPS Next 2Y110.86%
EPS Next 3Y80.86%
EPS Next 5Y48.65%
Revenue Next Year46.23%
Revenue Next 2Y35.93%
Revenue Next 3Y32.06%
Revenue Next 5Y28.13%
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 72.67, the valuation of CVNA can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CVNA.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (25.89), we can say CVNA is valued expensively.
With a Price/Forward Earnings ratio of 45.60, CVNA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVNA indicates a slightly more expensive valuation: CVNA is more expensive than 60.66% of the companies listed in the same industry.
CVNA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.67 | ||
| Fwd PE | 45.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than the industry average as 66.39% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVNA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.46 | ||
| EV/EBITDA | 35.8 |
4.3 Compensation for Growth
The 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 80.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y110.86%
EPS Next 3Y80.86%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
318.31
-0.23 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change3.03%
Ins Owners2.29%
Ins Owner Change-3.73%
Market Cap68.50B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts79.31
Price Target425.78 (33.76%)
Short Float %7.49%
Short Ratio3.79
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)1
Avg EPS beat(2)-3.28%
Min EPS beat(2)-19.89%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)53.73%
Min EPS beat(4)-19.89%
Max EPS beat(4)130.76%
EPS beat(8)6
Avg EPS beat(8)97.4%
EPS beat(12)10
Avg EPS beat(12)84.87%
EPS beat(16)10
Avg EPS beat(16)52.77%
Revenue beat(2)2
Avg Revenue beat(2)6.22%
Min Revenue beat(2)3.4%
Max Revenue beat(2)9.04%
Revenue beat(4)4
Avg Revenue beat(4)5.4%
Min Revenue beat(4)3.4%
Max Revenue beat(4)9.04%
Revenue beat(8)7
Avg Revenue beat(8)4.34%
Revenue beat(12)8
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.45%
PT rev (1m)2.84%
PT rev (3m)7.01%
EPS NQ rev (1m)8.08%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)7.31%
Revenue NQ rev (3m)11.57%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)9.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.67 | ||
| Fwd PE | 45.6 | ||
| P/S | 3.75 | ||
| P/FCF | 125.46 | ||
| P/OCF | 102.85 | ||
| P/B | 30.06 | ||
| P/tB | 30.57 | ||
| EV/EBITDA | 35.8 |
EPS(TTM)4.38
EY1.38%
EPS(NY)6.98
Fwd EY2.19%
FCF(TTM)2.54
FCFY0.8%
OCF(TTM)3.09
OCFY0.97%
SpS84.88
BVpS10.59
TBVpS10.41
PEG (NY)0.33
PEG (5Y)N/A
Graham Number32.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.6% | ||
| ROCE | 20.67% | ||
| ROIC | 17.57% | ||
| ROICexc | 23.6% | ||
| ROICexgc | 23.75% | ||
| OM | 9.4% | ||
| PM (TTM) | 3.44% | ||
| GM | 21.37% | ||
| FCFM | 2.99% |
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
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 3Y11.8%
GM growth 5Y10.37%
F-Score8
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 42.86% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 5.04 | ||
| Cash Conversion | 33.35% | ||
| Profit Quality | 86.8% | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 8.31 |
F-Score8
WACC9.02%
ROIC/WACC1.95
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)43700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.94%
EPS Next Y218.89%
EPS Next 2Y110.86%
EPS Next 3Y80.86%
EPS Next 5Y48.65%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
Revenue Next Year46.23%
Revenue Next 2Y35.93%
Revenue Next 3Y32.06%
Revenue Next 5Y28.13%
EBIT growth 1Y147.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year124.64%
EBIT Next 3Y52.89%
EBIT Next 5Y38.7%
FCF growth 1Y215.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y119.8%
OCF growth 3YN/A
OCF growth 5YN/A
CARVANA CO / CVNA FAQ
What is the ChartMill fundamental rating of CARVANA CO (CVNA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CVNA.
What is the valuation status for CVNA stock?
ChartMill assigns a valuation rating of 3 / 10 to CARVANA CO (CVNA). This can be considered as Overvalued.
What is the profitability of CVNA stock?
CARVANA CO (CVNA) has a profitability rating of 5 / 10.
How financially healthy is CARVANA CO?
The financial health rating of CARVANA CO (CVNA) is 6 / 10.
Is the dividend of CARVANA CO sustainable?
The dividend rating of CARVANA CO (CVNA) is 0 / 10 and the dividend payout ratio is 0%.