CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
309.88 USD
-3.37 (-1.08%)
312 USD
+2.12 (+0.68%)
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 only an average score on both its financial health and profitability. CVNA shows excellent growth, but is valued quite expensive already. This makes CVNA very considerable 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.
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
With a decent Return On Assets value of 6.38%, CVNA is doing good in the industry, outperforming 76.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.60%, CVNA belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
CVNA has a better Return On Invested Capital (17.57%) than 86.99% 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 71.54% of its industry peers.
CVNA has a better Operating Margin (9.40%) than 80.49% of its industry peers.
CVNA has a Gross Margin of 21.37%. This is in the lower half of the industry: CVNA underperforms 79.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CVNA is creating 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
Compared to 1 year ago, CVNA has an improved debt to assets ratio.
2.2 Solvency
CVNA has an Altman-Z score of 8.22. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CVNA (8.22) is better than 97.56% 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.
The Debt to FCF ratio of CVNA (9.53) is comparable to the rest of the industry.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CVNA (2.14) is worse than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 8.22 |
ROIC/WACC1.97
WACC8.9%
2.3 Liquidity
A Current Ratio of 4.05 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Current ratio (4.05) than 95.12% of its industry peers.
CVNA has a Quick Ratio of 2.55. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Quick ratio of 2.55. This is amongst the best in the industry. CVNA outperforms 94.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43700.00%, which is quite impressive.
Looking at the last year, CVNA shows a very strong growth in Revenue. The Revenue has grown by 45.55%.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.25% yearly.
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
The Earnings Per Share is expected to grow by 48.65% on average over the next years. This is a very strong growth
CVNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.13% yearly.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CVNA is valuated quite expensively with a Price/Earnings ratio of 70.75.
The rest of the industry has a similar Price/Earnings ratio as CVNA.
CVNA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 44.39.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, CVNA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.75 | ||
| Fwd PE | 44.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 66.67% of the companies in the same industry.
CVNA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.46 | ||
| EV/EBITDA | 35.25 |
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)0.32
PEG (5Y)N/A
EPS Next 2Y110.86%
EPS Next 3Y80.86%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
309.88
-3.37 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change19.18%
Ins Owners2.29%
Ins Owner Change-3.72%
Market Cap67.41B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts79.31
Price Target424.79 (37.08%)
Short Float %8.01%
Short Ratio3.43
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)2.6%
PT rev (3m)6.76%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)5.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)7.14%
Revenue NQ rev (3m)9.48%
Revenue NY rev (1m)3.78%
Revenue NY rev (3m)9.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.75 | ||
| Fwd PE | 44.39 | ||
| P/S | 3.69 | ||
| P/FCF | 123.46 | ||
| P/OCF | 101.22 | ||
| P/B | 29.58 | ||
| P/tB | 30.08 | ||
| EV/EBITDA | 35.25 |
EPS(TTM)4.38
EY1.41%
EPS(NY)6.98
Fwd EY2.25%
FCF(TTM)2.51
FCFY0.81%
OCF(TTM)3.06
OCFY0.99%
SpS83.97
BVpS10.48
TBVpS10.3
PEG (NY)0.32
PEG (5Y)N/A
Graham Number32.13
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 | 8.22 |
F-Score8
WACC8.9%
ROIC/WACC1.97
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%.