We assign a fundamental rating of 6 out of 10 to CART. CART was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. CART has an excellent financial health rating, but there are some minor concerns on its profitability. CART has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CART was profitable.
CART had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CART reported negative net income in multiple years.
In multiple years CART reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 11.34%, CART belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
CART has a Return On Equity of 14.11%. This is in the better half of the industry: CART outperforms 60.53% of its industry peers.
The Return On Invested Capital of CART (12.39%) is better than 86.84% of its industry peers.

		Industry Rank	Sector Rank
ROA	11.34%
ROE	14.11%
ROIC	12.39%

ROA(3y)-6.87%

ROA(5y)-5.28%

ROE(3y)-7.97%

ROE(5y)-6.32%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

CART's Profit Margin of 14.18% is amongst the best of the industry. CART outperforms 94.74% of its industry peers.
The Operating Margin of CART (15.28%) is better than 97.37% of its industry peers.
The Gross Margin of CART (67.30%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of CART has grown nicely.

		Industry Rank	Sector Rank
OM	15.28%
PM (TTM)	14.18%
GM	67.3%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y8.6%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CART has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CART has less shares outstanding than it did 1 year ago.
There is no outstanding debt for CART. 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

CART has an Altman-Z score of 7.41. This indicates that CART is financially healthy and has little risk of bankruptcy at the moment.
CART has a better Altman-Z score (7.41) than 92.11% of its industry peers.
CART has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	7.41

ROIC/WACC1.39

WACC8.9%

2.3 Liquidity

A Current Ratio of 3.64 indicates that CART has no problem at all paying its short term obligations.
The Current ratio of CART (3.64) is better than 97.37% of its industry peers.
CART has a Quick Ratio of 3.64. This indicates that CART is financially healthy and has no problem in meeting its short term obligations.
CART has a better Quick ratio (3.64) than 97.37% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.64
Quick Ratio	3.64

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CART shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.15%, which is quite impressive.
The Revenue has grown by 10.16% in the past year. This is quite good.
CART shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 73.64% yearly.

EPS 1Y (TTM)22.15%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%21.43%

Revenue 1Y (TTM)10.16%

Revenue growth 3Y22.58%

Revenue growth 5Y73.64%

Sales Q2Q%10.21%

3.2 Future

Based on estimates for the next years, CART will show a very strong growth in Earnings Per Share. The EPS will grow by 28.18% on average per year.
CART is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.50% yearly.

EPS Next Y21.17%

EPS Next 2Y19.26%

EPS Next 3Y18.03%

EPS Next 5Y28.18%

Revenue Next Year9.87%

Revenue Next 2Y9.72%

Revenue Next 3Y9.48%

Revenue Next 5Y6.5%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CART is valuated rather expensively with a Price/Earnings ratio of 20.37.
60.53% of the companies in the same industry are more expensive than CART, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CART to the average of the S&P500 Index (28.39), we can say CART is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.50, which indicates a correct valuation of CART.
63.16% of the companies in the same industry are more expensive than CART, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.72. CART is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	20.37
Fwd PE	16.5

4.2 Price Multiples

CART's Enterprise Value to EBITDA ratio is in line with the industry average.
81.58% of the companies in the same industry are more expensive than CART, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	11.07
EV/EBITDA	12.77

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.
CART has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CART's earnings are expected to grow with 18.03% in the coming years.