CARVANA CO (CVNA) Stock Fundamental Analysis
NYSE:CVNA - New York Stock Exchange, Inc. - US1468691027 - Common Stock - Currency: USD
CVNA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 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. With these ratings, CVNA could be worth investigating further 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.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple years.
In multiple years CVNA reported negative operating cash flow during the last 5 years.
1.2 Ratios
CVNA has a better Return On Assets (4.48%) than 66.12% of its industry peers.
With an excellent Return On Equity value of 26.46%, CVNA belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.11%, CVNA belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
| 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
The Profit Margin of CVNA (2.68%) is better than 65.29% of its industry peers.
The Operating Margin of CVNA (8.42%) is better than 80.17% of its industry peers.
The Gross Margin of CVNA (21.65%) is worse than 80.17% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
| 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.
CVNA has more shares outstanding than it did 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
CVNA has an Altman-Z score of 7.82. 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 7.82, CVNA belongs to the top of the industry, outperforming 98.35% of the companies in the same industry.
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.
CVNA has a Debt to FCF ratio of 5.94. This is in the better half of the industry: CVNA outperforms 60.33% of its industry peers.
A Debt/Equity ratio of 3.55 is on the high side and indicates that CVNA has dependencies on debt financing.
The Debt to Equity ratio of CVNA (3.55) is worse than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 7.82 |
ROIC/WACC1.53
WACC9.21%
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.
With an excellent Current ratio value of 3.81, CVNA belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
A Quick Ratio of 2.70 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Quick ratio (2.70) than 96.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.81 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 260.11%, which is quite impressive.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.23%.
The Revenue has been growing by 28.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%
3.2 Future
CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.89% yearly.
Based on estimates for the next years, CVNA will show a quite strong growth in Revenue. The Revenue will grow by 18.05% on average per year.
EPS Next Y194.05%
EPS Next 2Y94.58%
EPS Next 3Y64.43%
EPS Next 5Y42.89%
Revenue Next Year32.03%
Revenue Next 2Y26.87%
Revenue Next 3Y25.21%
Revenue Next 5Y18.06%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 112.24, CVNA can be considered very expensive at the moment.
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 26.35.
With a Price/Forward Earnings ratio of 53.82, 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 65.29% of the companies listed in the same industry.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.24 | ||
| Fwd PE | 53.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVNA indicates a slightly more expensive valuation: CVNA is more expensive than 65.29% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVNA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.18 | ||
| EV/EBITDA | 45.05 |
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 64.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y94.58%
EPS Next 3Y64.43%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
319.89
+11.98 (+3.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.99%
Inst Owner Change-1.21%
Ins Owners2.83%
Ins Owner Change-0.68%
Market Cap68.50B
Analysts77.78
Price Target293.07 (-8.38%)
Short Float %7.28%
Short Ratio2.16
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)12.07%
PT rev (3m)9.45%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)37.05%
EPS NY rev (1m)0%
EPS NY rev (3m)98.05%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)9.25%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)7.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.24 | ||
| Fwd PE | 53.82 | ||
| P/S | 4.61 | ||
| P/FCF | 72.18 | ||
| P/OCF | 65.3 | ||
| P/B | 45.55 | ||
| P/tB | 46.69 | ||
| EV/EBITDA | 45.05 |
EPS(TTM)2.85
EY0.89%
EPS(NY)5.94
Fwd EY1.86%
FCF(TTM)4.43
FCFY1.39%
OCF(TTM)4.9
OCFY1.53%
SpS69.32
BVpS7.02
TBVpS6.85
PEG (NY)0.58
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 | 7.82 |
F-Score7
WACC9.21%
ROIC/WACC1.53
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)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
EPS Next Y194.05%
EPS Next 2Y94.58%
EPS Next 3Y64.43%
EPS Next 5Y42.89%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%
Revenue Next Year32.03%
Revenue Next 2Y26.87%
Revenue Next 3Y25.21%
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