CAVA GROUP INC (CAVA)
US1489291021 - Common Stock
We assign a fundamental rating of 4 out of 10 to CAVA. CAVA was compared to 133 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.
1. Profitability
1.1 Basic Checks
In the past year CAVA was profitable.
CAVA had a positive operating cash flow in the past year.
1.2 Ratios
CAVA has a Return On Assets of 4.98%. This is in the better half of the industry: CAVA outperforms 68.66% of its industry peers.
CAVA has a Return On Equity of 8.72%. This is in the better half of the industry: CAVA outperforms 69.40% of its industry peers.
The Return On Invested Capital of CAVA (3.63%) is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
CAVA has a Profit Margin of 5.88%. This is in the better half of the industry: CAVA outperforms 63.43% of its industry peers.
CAVA's Operating Margin of 4.76% is on the low side compared to the rest of the industry. CAVA is outperformed by 63.43% of its industry peers.
Looking at the Gross Margin, with a value of 32.57%, CAVA is doing worse than 74.63% of the companies in the same industry.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
CAVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CAVA has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 18.43 indicates that CAVA is not in any danger for bankruptcy at the moment.
CAVA has a Altman-Z score of 18.43. This is amongst the best in the industry. CAVA outperforms 99.25% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.43 |
ROIC/WACC0.39
WACC9.21%
2.3 Liquidity
CAVA has a Current Ratio of 2.93. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
CAVA's Current ratio of 2.93 is amongst the best of the industry. CAVA outperforms 95.52% of its industry peers.
A Quick Ratio of 2.87 indicates that CAVA has no problem at all paying its short term obligations.
CAVA has a better Quick ratio (2.87) than 97.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 468.65%, which is quite impressive.
Looking at the last year, CAVA shows a very strong growth in Revenue. The Revenue has grown by 34.04%.
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
The Revenue is expected to grow by 23.04% on average over the next years. This is a very strong growth
EPS Next Y195.5%
EPS Next 2Y90.88%
EPS Next 3Y68.47%
EPS Next 5Y61.09%
Revenue Next Year32.41%
Revenue Next 2Y27.88%
Revenue Next 3Y25.91%
Revenue Next 5Y23.04%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 258.80, CAVA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CAVA indicates a slightly more expensive valuation: CAVA is more expensive than 67.16% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAVA to the average of the S&P500 Index (27.20), we can say CAVA is valued expensively.
The Price/Forward Earnings ratio is 187.82, which means the current valuation is very expensive for CAVA.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than 67.16% of the companies in the same industry.
CAVA is valuated expensively when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 258.8 | ||
| Fwd PE | 187.82 |
4.2 Price Multiples
CAVA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CAVA is more expensive than 84.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAVA is valued a bit more expensive than the industry average as 61.94% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 313.22 | ||
| EV/EBITDA | 131.16 |
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)1.32
PEG (5Y)N/A
EPS Next 2Y90.88%
EPS Next 3Y68.47%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CAVA GROUP INC
NYSE:CAVA (12/20/2024, 8:04:00 PM)
After market: 119.5 +0.45 (+0.38%)119.05
+2 (+1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners68.42%
Inst Owner Change-0.45%
Ins Owners8.83%
Ins Owner Change-66.14%
Market Cap13.64B
Analysts78.26
Price Target159.04 (33.59%)
Short Float %8.6%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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%
PT rev (3m)46.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)432.3%
EPS NY rev (1m)18.59%
EPS NY rev (3m)26.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.98%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 258.8 | ||
| Fwd PE | 187.82 | ||
| P/S | 14.93 | ||
| P/FCF | 313.22 | ||
| P/OCF | 87.9 | ||
| P/B | 22.13 | ||
| P/tB | 22.25 | ||
| EV/EBITDA | 131.16 |
EPS(TTM)0.46
EY0.39%
EPS(NY)0.63
Fwd EY0.53%
FCF(TTM)0.38
FCFY0.32%
OCF(TTM)1.35
OCFY1.14%
SpS7.97
BVpS5.38
TBVpS5.35
PEG (NY)1.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 18.43 |
F-Score7
WACC9.21%
ROIC/WACC0.39
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 Year32.41%
Revenue Next 2Y27.88%
Revenue Next 3Y25.91%
Revenue Next 5Y23.04%
EBIT growth 1Y503.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year3210.71%
EBIT Next 3Y280.97%
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