CAVA GROUP INC (CAVA) Stock Fundamental Analysis
NYSE:CAVA - New York Stock Exchange, Inc. - US1489291021 - Common Stock - Currency: USD
CAVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 136 industry peers in the Hotels, Restaurants & Leisure industry. While CAVA has a great health rating, there are worries on its profitability. CAVA is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
CAVA had positive earnings in the past year.
In the past year CAVA had a positive cash flow from operations.
1.2 Ratios
CAVA has a Return On Assets of 11.14%. This is amongst the best in the industry. CAVA outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 18.74%, CAVA is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.71%, CAVA is in line with its industry, outperforming 42.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 18.74% | ||
| ROIC | 3.71% |
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
Looking at the Profit Margin, with a value of 13.52%, CAVA belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
CAVA has a worse Operating Margin (5.06%) than 64.71% of its industry peers.
CAVA's Gross Margin of 32.34% is on the low side compared to the rest of the industry. CAVA is outperformed by 74.26% of its industry peers.
CAVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.06% | ||
| PM (TTM) | 13.52% | ||
| GM | 32.34% |
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
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
CAVA has an Altman-Z score of 13.43. This indicates that CAVA is financially healthy and has little risk of bankruptcy at the moment.
CAVA has a better Altman-Z score (13.43) than 99.26% of its industry peers.
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 | 13.43 |
ROIC/WACC0.41
WACC8.98%
2.3 Liquidity
CAVA has a Current Ratio of 2.97. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.97, CAVA belongs to the best of the industry, outperforming 94.85% of the companies in the same industry.
CAVA has a Quick Ratio of 2.91. This indicates that CAVA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.91, CAVA belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
CAVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 307.41%, which is quite impressive.
CAVA shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.25%.
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)307.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.35%
3.2 Future
CAVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.68% yearly.
The Revenue is expected to grow by 19.77% on average over the next years. This is quite good.
EPS Next Y12.14%
EPS Next 2Y20.66%
EPS Next 3Y24.09%
EPS Next 5Y28.68%
Revenue Next Year23.39%
Revenue Next 2Y22.23%
Revenue Next 3Y22.23%
Revenue Next 5Y19.77%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 175.51, CAVA can be considered very expensive at the moment.
63.97% of the companies in the same industry are cheaper than CAVA, based on the Price/Earnings ratio.
CAVA is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 156.52, which means the current valuation is very expensive for CAVA.
66.18% of the companies in the same industry are cheaper than CAVA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, CAVA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.51 | ||
| Fwd PE | 156.52 |
4.2 Price Multiples
CAVA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CAVA is more expensive than 80.88% of the companies in the same industry.
63.97% 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 | 187.93 | ||
| EV/EBITDA | 87.75 |
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 24.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.46
PEG (5Y)N/A
EPS Next 2Y20.66%
EPS Next 3Y24.09%
5. Dividend
5.1 Amount
CAVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86
+0.44 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.19%
Inst Owner Change0.27%
Ins Owners8.3%
Ins Owner Change-36.75%
Market Cap9.94B
Analysts81.67
Price Target125.97 (46.48%)
Short Float %5.76%
Short Ratio2.05
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)1
Avg EPS beat(2)4.34%
Min EPS beat(2)-24.49%
Max EPS beat(2)33.18%
EPS beat(4)3
Avg EPS beat(4)55.75%
Min EPS beat(4)-24.49%
Max EPS beat(4)181.32%
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)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)2.33%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-0.44%
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)-9.8%
PT rev (3m)-20.88%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-19.73%
EPS NY rev (1m)-13.2%
EPS NY rev (3m)-13.31%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.51 | ||
| Fwd PE | 156.52 | ||
| P/S | 10.32 | ||
| P/FCF | 187.93 | ||
| P/OCF | 61.73 | ||
| P/B | 14.29 | ||
| P/tB | 14.36 | ||
| EV/EBITDA | 87.75 |
EPS(TTM)0.49
EY0.57%
EPS(NY)0.55
Fwd EY0.64%
FCF(TTM)0.46
FCFY0.53%
OCF(TTM)1.39
OCFY1.62%
SpS8.34
BVpS6.02
TBVpS5.99
PEG (NY)14.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 18.74% | ||
| ROCE | 4.7% | ||
| ROIC | 3.71% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 5.77% | ||
| OM | 5.06% | ||
| PM (TTM) | 13.52% | ||
| GM | 32.34% | ||
| FCFM | 5.49% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 179.16% | ||
| Cap/Sales | 11.22% | ||
| Interest Coverage | 231.06 | ||
| Cash Conversion | 147.59% | ||
| Profit Quality | 40.59% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 13.43 |
F-Score6
WACC8.98%
ROIC/WACC0.41
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)307.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y12.14%
EPS Next 2Y20.66%
EPS Next 3Y24.09%
EPS Next 5Y28.68%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.35%
Revenue Next Year23.39%
Revenue Next 2Y22.23%
Revenue Next 3Y22.23%
Revenue Next 5Y19.77%
EBIT growth 1Y210.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year253.03%
EBIT Next 3Y79.76%
EBIT Next 5Y54.02%
FCF growth 1Y226.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.83%
OCF growth 3Y262.05%
OCF growth 5YN/A