CARVANA CO (CVNA) Stock Fundamental Analysis
USA - NYSE:CVNA - US1468691027 - Common Stock
322.28 USD
+18.29 (+6.02%)
321.74 USD
-0.54 (-0.17%)
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 122 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA is valued quite expensive, but it does show an excellent growth. These ratings would make CVNA suitable for growth investing!
1. Profitability
1.1 Basic Checks
CVNA had positive earnings in the past year.
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
CVNA's Return On Assets of 6.38% is fine compared to the rest of the industry. CVNA outperforms 76.23% of its industry peers.
Looking at the Return On Equity, with a value of 27.60%, CVNA belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.57%, CVNA belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
| 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 better Profit Margin (3.44%) than 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.
With a Gross Margin value of 21.37%, CVNA is not doing good in the industry: 79.51% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CVNA is creating value.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
CVNA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVNA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.37 indicates that CVNA is not in any danger for bankruptcy at the moment.
The Altman-Z score of CVNA (8.37) is better than 97.54% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.53, CVNA is in line with its industry, outperforming 55.74% of the companies in the same industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CVNA has dependencies on debt financing.
CVNA's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. CVNA is outperformed by 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 8.37 |
ROIC/WACC1.95
WACC9.01%
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.
The Current ratio of CVNA (4.05) is better than 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.
CVNA has a Quick ratio of 2.55. This is amongst the best in the industry. CVNA outperforms 94.26% of its industry peers.
| 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
Based on estimates for the next years, CVNA will show a very strong growth in Earnings Per Share. The EPS will grow by 48.65% on average per year.
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
A Price/Earnings ratio of 73.58 indicates a quite expensive valuation of CVNA.
CVNA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.28. CVNA is valued rather expensively when compared to this.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 46.17.
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 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.58 | ||
| Fwd PE | 46.17 |
4.2 Price Multiples
66.39% 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 | 127.02 | ||
| EV/EBITDA | 36.23 |
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)0.34
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 |
322.28
+18.29 (+6.02%)
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 Cap69.35B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts79.31
Price Target425.78 (32.11%)
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)9.4%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)7.68%
Revenue NQ rev (3m)12.24%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)9.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.58 | ||
| Fwd PE | 46.17 | ||
| P/S | 3.8 | ||
| P/FCF | 127.02 | ||
| P/OCF | 104.14 | ||
| P/B | 30.43 | ||
| P/tB | 30.95 | ||
| EV/EBITDA | 36.23 |
EPS(TTM)4.38
EY1.36%
EPS(NY)6.98
Fwd EY2.17%
FCF(TTM)2.54
FCFY0.79%
OCF(TTM)3.09
OCFY0.96%
SpS84.88
BVpS10.59
TBVpS10.41
PEG (NY)0.34
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 | 8.37 |
F-Score8
WACC9.01%
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%.