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CAVA GROUP INC (CAVA) Stock Fundamental Analysis

NYSE:CAVA - New York Stock Exchange, Inc. - US1489291021 - Common Stock - Currency: USD

133.649  +7.69 (+6.1%)

Fundamental Rating

4

CAVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While CAVA has a great health rating, there are worries on its profitability. While showing a medium growth rate, CAVA is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

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.
CAVA Yearly Net Income VS EBIT VS OCF VS FCFCAVA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 0 50M -50M

1.2 Ratios

With a decent Return On Assets value of 4.98%, CAVA is doing good in the industry, outperforming 67.94% of the companies in the same industry.
CAVA has a better Return On Equity (8.72%) than 67.94% of its industry peers.
CAVA has a Return On Invested Capital of 3.63%. This is in the lower half of the industry: CAVA underperforms 60.31% of its industry peers.
Industry RankSector Rank
ROA 4.98%
ROE 8.72%
ROIC 3.63%
ROA(3y)-6.36%
ROA(5y)N/A
ROE(3y)-13.05%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CAVA Yearly ROA, ROE, ROICCAVA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 0 -5 -10 -15 -20 -25

1.3 Margins

Looking at the Profit Margin, with a value of 5.88%, CAVA is in the better half of the industry, outperforming 63.36% of the companies in the same industry.
With a Operating Margin value of 4.76%, CAVA is not doing good in the industry: 64.89% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 32.57%, CAVA is doing worse than 74.05% of the companies in the same industry.
Industry RankSector Rank
OM 4.76%
PM (TTM) 5.88%
GM 32.57%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CAVA Yearly Profit, Operating, Gross MarginsCAVA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 0 10 -10 20 30

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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAVA is destroying value.
The number of shares outstanding for CAVA has been increased compared to 1 year ago.
There is no outstanding debt for CAVA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CAVA Yearly Shares OutstandingCAVA Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 20M 40M 60M 80M 100M
CAVA Yearly Total Debt VS Total AssetsCAVA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 19.45 indicates that CAVA is not in any danger for bankruptcy at the moment.
CAVA has a better Altman-Z score (19.45) than 99.24% of its industry peers.
There is no outstanding debt for CAVA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 19.45
ROIC/WACC0.4
WACC9.17%
CAVA Yearly LT Debt VS Equity VS FCFCAVA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 0 200M 400M

2.3 Liquidity

A Current Ratio of 2.93 indicates that CAVA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.93, CAVA belongs to the best of the industry, outperforming 94.66% of the companies in the same industry.
CAVA has a Quick Ratio of 2.87. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
CAVA has a Quick ratio of 2.87. This is amongst the best in the industry. CAVA outperforms 95.42% of its industry peers.
Industry RankSector Rank
Current Ratio 2.93
Quick Ratio 2.87
CAVA Yearly Current Assets VS Current LiabilitesCAVA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 100M 200M 300M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 468.65% over the past year.
The Revenue has grown by 34.04% in the past year. This is a very strong growth!
EPS 1Y (TTM)468.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)34.04%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%38.89%

3.2 Future

The Earnings Per Share is expected to grow by 61.09% on average over the next years. This is a very strong growth
Based on estimates for the next years, CAVA will show a very strong growth in Revenue. The Revenue will grow by 23.04% on average per year.
EPS Next Y195.5%
EPS Next 2Y90.88%
EPS Next 3Y68.47%
EPS Next 5Y61.09%
Revenue Next Year32.42%
Revenue Next 2Y27.93%
Revenue Next 3Y25.91%
Revenue Next 5Y23.04%

3.3 Evolution

CAVA Yearly Revenue VS EstimatesCAVA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
CAVA Yearly EPS VS EstimatesCAVA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 290.54 indicates a quite expensive valuation of CAVA.
68.70% of the companies in the same industry are cheaper than CAVA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.42, CAVA is valued quite expensively.
A Price/Forward Earnings ratio of 210.85 indicates a quite expensive valuation of CAVA.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than the industry average as 68.70% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, CAVA is valued quite expensively.
Industry RankSector Rank
PE 290.54
Fwd PE 210.85
CAVA Price Earnings VS Forward Price EarningsCAVA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

CAVA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CAVA is more expensive than 85.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAVA indicates a slightly more expensive valuation: CAVA is more expensive than 62.60% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 351.63
EV/EBITDA 138.99
CAVA Per share dataCAVA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

CAVA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAVA's earnings are expected to grow with 68.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y90.88%
EPS Next 3Y68.47%

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0

5. Dividend

5.1 Amount

CAVA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CAVA GROUP INC

NYSE:CAVA (1/29/2025, 11:50:07 AM)

133.649

+7.69 (+6.1%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)N/A N/A
Inst Owners68.42%
Inst Owner Change3.1%
Ins Owners8.83%
Ins Owner Change-65.86%
Market Cap15.31B
Analysts78.26
Price Target159.21 (19.13%)
Short Float %9.69%
Short Ratio3.16
Dividend
Industry RankSector 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)33.08%
Min EPS beat(2)32.98%
Max EPS beat(2)33.18%
EPS beat(4)4
Avg EPS beat(4)161.92%
Min EPS beat(4)32.98%
Max EPS beat(4)400.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)2
Avg Revenue beat(2)3.31%
Min Revenue beat(2)2.33%
Max Revenue beat(2)4.29%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)4.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0.11%
PT rev (3m)32.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)432.3%
EPS NY rev (1m)0%
EPS NY rev (3m)26.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.98%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.8%
Valuation
Industry RankSector Rank
PE 290.54
Fwd PE 210.85
P/S 16.76
P/FCF 351.63
P/OCF 98.68
P/B 24.84
P/tB 24.98
EV/EBITDA 138.99
EPS(TTM)0.46
EY0.34%
EPS(NY)0.63
Fwd EY0.47%
FCF(TTM)0.38
FCFY0.28%
OCF(TTM)1.35
OCFY1.01%
SpS7.97
BVpS5.38
TBVpS5.35
PEG (NY)1.49
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.98%
ROE 8.72%
ROCE 4.6%
ROIC 3.63%
ROICexc 5.94%
ROICexgc 5.98%
OM 4.76%
PM (TTM) 5.88%
GM 32.57%
FCFM 4.77%
ROA(3y)-6.36%
ROA(5y)N/A
ROE(3y)-13.05%
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 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 193.43%
Cap/Sales 12.22%
Interest Coverage 250
Cash Conversion 153.35%
Profit Quality 81.02%
Current Ratio 2.93
Quick Ratio 2.87
Altman-Z 19.45
F-Score7
WACC9.17%
ROIC/WACC0.4
Cap/Depr(3y)221.23%
Cap/Depr(5y)N/A
Cap/Sales(3y)16.27%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)468.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y195.5%
EPS Next 2Y90.88%
EPS Next 3Y68.47%
EPS Next 5Y61.09%
Revenue 1Y (TTM)34.04%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%38.89%
Revenue Next Year32.42%
Revenue Next 2Y27.93%
Revenue Next 3Y25.91%
Revenue Next 5Y23.04%
EBIT growth 1Y503.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year3261.21%
EBIT Next 3Y284.72%
EBIT Next 5Y144.87%
FCF growth 1Y148.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y194081%
OCF growth 3YN/A
OCF growth 5YN/A