AVIS BUDGET GROUP INC (CAR) Stock Fundamental Analysis
NASDAQ:CAR - Nasdaq - US0537741052 - Common Stock - Currency: USD
CAR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 39 industry peers in the Ground Transportation industry. Both the profitability and financial health of CAR have multiple concerns. CAR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CAR has reported negative net income.
In the past year CAR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CAR reported negative net income in multiple years.
Of the past 5 years CAR 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.21%, CAR is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.15%, CAR perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | N/A | ||
| ROIC | 5.15% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CAR has a Profit Margin of 3.34%. This is in the lower half of the industry: CAR underperforms 63.16% of its industry peers.
CAR has a better Operating Margin (14.97%) than 78.95% of its industry peers.
In the last couple of years the Operating Margin of CAR has grown nicely.
CAR has a better Gross Margin (61.72%) than 71.05% of its industry peers.
CAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 3.34% | ||
| GM | 61.72% |
OM growth 3Y-23.07%
OM growth 5Y2.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
CAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for CAR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CAR has an Altman-Z score of 0.73. This is a bad value and indicates that CAR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CAR (0.73) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.97
WACC5.32%
2.3 Liquidity
A Current Ratio of 0.70 indicates that CAR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, CAR is doing worse than 84.21% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that CAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, CAR is doing worse than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
CAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -221.45%.
The Revenue has decreased by -1.82% in the past year.
The Revenue has been growing slightly by 5.15% on average over the past years.
EPS 1Y (TTM)-221.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-883.1%
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-1.95%
3.2 Future
Based on estimates for the next years, CAR will show a very strong growth in Earnings Per Share. The EPS will grow by 32.76% on average per year.
Based on estimates for the next years, CAR will show a small growth in Revenue. The Revenue will grow by 1.03% on average per year.
EPS Next Y117.79%
EPS Next 2Y51.59%
EPS Next 3Y32.76%
EPS Next 5YN/A
Revenue Next Year1.15%
Revenue Next 2Y1.66%
Revenue Next 3Y1.03%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CAR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.46, the valuation of CAR can be described as very reasonable.
CAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAR is cheaper than 92.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAR is valued cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
CAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CAR's earnings are expected to grow with 32.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.59%
EPS Next 3Y32.76%
5. Dividend
5.1 Amount
CAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.1
-6.73 (-7.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners98.66%
Inst Owner Change-0.63%
Ins Owners3.11%
Ins Owner Change0.1%
Market Cap3.06B
Analysts76.92
Price Target113.37 (30.16%)
Short Float %6.9%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend9.59
Dividend Growth(5Y)23.82%
DP89.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.88%
Min EPS beat(2)-84.3%
Max EPS beat(2)-19.47%
EPS beat(4)1
Avg EPS beat(4)-13%
Min EPS beat(4)-84.3%
Max EPS beat(4)69.33%
EPS beat(8)5
Avg EPS beat(8)22.74%
EPS beat(12)9
Avg EPS beat(12)38.9%
EPS beat(16)13
Avg EPS beat(16)64.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-2.49%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)4.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)6
Avg Revenue beat(12)1.27%
Revenue beat(16)9
Avg Revenue beat(16)2.54%
PT rev (1m)-0.71%
PT rev (3m)0.51%
EPS NQ rev (1m)-8.19%
EPS NQ rev (3m)-32.73%
EPS NY rev (1m)-12.82%
EPS NY rev (3m)13.74%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.46 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 0.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.86 |
EPS(TTM)-51.75
EYN/A
EPS(NY)9.21
Fwd EY10.57%
FCF(TTM)-211.1
FCFYN/A
OCF(TTM)100.71
OCFY115.63%
SpS337.02
BVpS-6.77
TBVpS-56.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | N/A | ||
| ROCE | 6.03% | ||
| ROIC | 5.15% | ||
| ROICexc | 5.26% | ||
| ROICexgc | 5.6% | ||
| OM | 14.97% | ||
| PM (TTM) | 3.34% | ||
| GM | 61.72% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
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 3Y-23.07%
OM growth 5Y2.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5Y0.07%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 395.99% | ||
| Cap/Sales | 92.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.73 |
F-Score6
WACC5.32%
ROIC/WACC0.97
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-221.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-883.1%
EPS Next Y117.79%
EPS Next 2Y51.59%
EPS Next 3Y32.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y8.18%
Revenue growth 5Y5.15%
Sales Q2Q%-1.95%
Revenue Next Year1.15%
Revenue Next 2Y1.66%
Revenue Next 3Y1.03%
Revenue Next 5YN/A
EBIT growth 1Y-27.63%
EBIT growth 3Y-16.78%
EBIT growth 5Y7.59%
EBIT Next Year60.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.79%
OCF growth 3YN/A
OCF growth 5YN/A