CAVA GROUP INC (CAVA) Stock Fundamental Analysis
USA - NYSE:CAVA - US1489291021 - Common Stock
63.63 USD
-0.69 (-1.07%)
63.5604 USD
-0.07 (-0.11%)
CAVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. No worries on liquidiy or solvency for CAVA as it has an excellent financial health rating, but there are worries on the profitability. CAVA is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year CAVA was profitable.
In the past year CAVA had a positive cash flow from operations.
1.2 Ratios
CAVA has a Return On Assets of 10.89%. This is amongst the best in the industry. CAVA outperforms 86.57% of its industry peers.
With a decent Return On Equity value of 18.74%, CAVA is doing good in the industry, outperforming 76.87% of the companies in the same industry.
The Return On Invested Capital of CAVA (4.09%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 18.74% | ||
| ROIC | 4.09% |
ROA(3y)0.8%
ROA(5y)N/A
ROE(3y)-2.18%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CAVA's Profit Margin of 12.98% is amongst the best of the industry. CAVA outperforms 82.09% of its industry peers.
CAVA's Operating Margin of 5.44% is on the low side compared to the rest of the industry. CAVA is outperformed by 61.19% of its industry peers.
CAVA has a worse Gross Margin (32.26%) than 73.13% of its industry peers.
In the last couple of years the Gross Margin of CAVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 32.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.15%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAVA is destroying value.
The number of shares outstanding for CAVA has been increased compared to 1 year ago.
CAVA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CAVA has an Altman-Z score of 9.21. This indicates that CAVA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.21, CAVA belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
CAVA 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 | 9.21 |
ROIC/WACC0.46
WACC8.81%
2.3 Liquidity
A Current Ratio of 2.72 indicates that CAVA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.72, CAVA belongs to the best of the industry, outperforming 94.03% of the companies in the same industry.
A Quick Ratio of 2.67 indicates that CAVA has no problem at all paying its short term obligations.
CAVA's Quick ratio of 2.67 is amongst the best of the industry. CAVA outperforms 93.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.76%, which is quite impressive.
The Revenue has grown by 28.21% in the past year. This is a very strong growth!
Measured over the past years, CAVA shows a very strong growth in Revenue. The Revenue has been growing by 24.44% on average per year.
EPS 1Y (TTM)56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.88%
Revenue 1Y (TTM)28.21%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%20.18%
3.2 Future
The Earnings Per Share is expected to grow by 26.72% on average over the next years. This is a very strong growth
CAVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.74% yearly.
EPS Next Y15.57%
EPS Next 2Y18.34%
EPS Next 3Y22.63%
EPS Next 5Y26.72%
Revenue Next Year22.88%
Revenue Next 2Y22.27%
Revenue Next 3Y21.94%
Revenue Next 5Y19.74%
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
With a Price/Earnings ratio of 109.71, CAVA can be considered very expensive at the moment.
CAVA's Price/Earnings ratio is a bit more expensive when compared to the industry. CAVA is more expensive than 64.18% of the companies in the same industry.
CAVA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 92.73, the valuation of CAVA can be described as expensive.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than 65.67% of the companies in the same industry.
CAVA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.71 | ||
| Fwd PE | 92.73 |
4.2 Price Multiples
79.10% of the companies in the same industry are cheaper than CAVA, based on the Enterprise Value to EBITDA ratio.
60.45% of the companies in the same industry are cheaper than CAVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.7 | ||
| EV/EBITDA | 55.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAVA does not grow enough to justify the current Price/Earnings ratio.
CAVA's earnings are expected to grow with 22.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.05
PEG (5Y)N/A
EPS Next 2Y18.34%
EPS Next 3Y22.63%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.63
-0.69 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners80.43%
Inst Owner Change-1.27%
Ins Owners5.67%
Ins Owner Change-0.24%
Market Cap7.38B
Analysts82.4
Price Target94.37 (48.31%)
Short Float %10.2%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.7%
Min EPS beat(2)16.32%
Max EPS beat(2)55.09%
EPS beat(4)3
Avg EPS beat(4)20.02%
Min EPS beat(4)-24.49%
Max EPS beat(4)55.09%
EPS beat(8)7
Avg EPS beat(8)198.69%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-0.42%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-17.04%
PT rev (3m)-20.73%
EPS NQ rev (1m)-16.59%
EPS NQ rev (3m)-18.34%
EPS NY rev (1m)-3.59%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.71 | ||
| Fwd PE | 92.73 | ||
| P/S | 6.81 | ||
| P/FCF | 155.7 | ||
| P/OCF | 42.74 | ||
| P/B | 9.83 | ||
| P/tB | 9.87 | ||
| EV/EBITDA | 55.41 |
EPS(TTM)0.58
EY0.91%
EPS(NY)0.69
Fwd EY1.08%
FCF(TTM)0.41
FCFY0.64%
OCF(TTM)1.49
OCFY2.34%
SpS9.35
BVpS6.47
TBVpS6.44
PEG (NY)7.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 18.74% | ||
| ROCE | 5.18% | ||
| ROIC | 4.09% | ||
| ROICexc | 6.19% | ||
| ROICexgc | 6.22% | ||
| OM | 5.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 32.26% | ||
| FCFM | 4.37% |
ROA(3y)0.8%
ROA(5y)N/A
ROE(3y)-2.18%
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 3Y7.15%
GM growth 5YN/A
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 187.14% | ||
| Cap/Sales | 11.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.11% | ||
| Profit Quality | 33.69% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 9.21 |
F-Score6
WACC8.81%
ROIC/WACC0.46
Cap/Depr(3y)238.66%
Cap/Depr(5y)N/A
Cap/Sales(3y)16.25%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)56.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5.88%
EPS Next Y15.57%
EPS Next 2Y18.34%
EPS Next 3Y22.63%
EPS Next 5Y26.72%
Revenue 1Y (TTM)28.21%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%20.18%
Revenue Next Year22.88%
Revenue Next 2Y22.27%
Revenue Next 3Y21.94%
Revenue Next 5Y19.74%
EBIT growth 1Y79.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.2%
EBIT Next 3Y77.53%
EBIT Next 5Y54.69%
FCF growth 1Y226.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.83%
OCF growth 3Y262.05%
OCF growth 5YN/A