CAVA GROUP INC (CAVA) Stock Fundamental Analysis
NYSE:CAVA - New York Stock Exchange, Inc. - US1489291021 - Common Stock - Currency: USD
Overall CAVA gets a fundamental rating of 5 out of 10. We evaluated CAVA against 135 industry peers in the Hotels, Restaurants & Leisure industry. CAVA has a great financial health rating, but its profitability evaluates not so good. CAVA shows excellent growth, but is valued quite expensive already.
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
With an excellent Return On Assets value of 11.14%, CAVA belongs to the best of the industry, outperforming 86.26% of the companies in the same industry.
With a decent Return On Equity value of 18.74%, CAVA is doing good in the industry, outperforming 77.10% of the companies in the same industry.
CAVA has a Return On Invested Capital (3.71%) which is in line with its industry peers.
| 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
The Profit Margin of CAVA (13.52%) is better than 80.92% of its industry peers.
Looking at the Operating Margin, with a value of 5.06%, CAVA is doing worse than 64.12% of the companies in the same industry.
CAVA has a worse Gross Margin (32.34%) than 74.81% of its industry peers.
In the last couple of years the Gross Margin of CAVA has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAVA is destroying value.
CAVA has more shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 14.63 indicates that CAVA is not in any danger for bankruptcy at the moment.
The Altman-Z score of CAVA (14.63) is better than 98.47% 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 | 14.63 |
ROIC/WACC0.4
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.97 indicates that CAVA has no problem at all paying its short term obligations.
CAVA has a Current ratio of 2.97. This is amongst the best in the industry. CAVA outperforms 94.66% of its industry peers.
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.
The Quick ratio of CAVA (2.91) is better than 96.18% of its industry peers.
| 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.
Looking at the last year, CAVA shows a very strong growth in Revenue. The Revenue has grown by 32.25%.
The Revenue has been growing by 24.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)307.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3200%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.35%
3.2 Future
The Earnings Per Share is expected to grow by 17.35% on average over the next years. This is quite good.
Based on estimates for the next years, CAVA will show a quite strong growth in Revenue. The Revenue will grow by 19.82% on average per year.
EPS Next Y-42.45%
EPS Next 2Y-13.16%
EPS Next 3Y7.77%
EPS Next 5Y17.35%
Revenue Next Year23.59%
Revenue Next 2Y22.73%
Revenue Next 3Y21.55%
Revenue Next 5Y19.82%
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
The Price/Earnings ratio is 79.68, which means the current valuation is very expensive for CAVA.
Based on the Price/Earnings ratio, CAVA is valued a bit more expensive than 63.36% 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 29.75.
With a Price/Forward Earnings ratio of 138.46, CAVA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CAVA is valued a bit more expensive than 68.70% 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 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.68 | ||
| Fwd PE | 138.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAVA indicates a rather expensive valuation: CAVA more expensive than 84.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CAVA is valued a bit more expensive than 64.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 189.86 | ||
| EV/EBITDA | 96.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.16%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
No dividends for CAVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.65
-7.38 (-7.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.19%
Inst Owner Change-0.16%
Ins Owners8.3%
Ins Owner Change-38.97%
Market Cap10.04B
Analysts78.26
Price Target151.56 (72.92%)
Short Float %8.63%
Short Ratio4.01
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)464.94%
Min EPS beat(2)33.18%
Max EPS beat(2)896.7%
EPS beat(4)4
Avg EPS beat(4)286.05%
Min EPS beat(4)32.98%
Max EPS beat(4)896.7%
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)0%
PT rev (3m)-4.7%
EPS NQ rev (1m)-21.21%
EPS NQ rev (3m)-18.82%
EPS NY rev (1m)0%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.68 | ||
| Fwd PE | 138.46 | ||
| P/S | 10.42 | ||
| P/FCF | 189.86 | ||
| P/OCF | 62.37 | ||
| P/B | 14.44 | ||
| P/tB | 14.51 | ||
| EV/EBITDA | 96.44 |
EPS(TTM)1.1
EY1.25%
EPS(NY)0.63
Fwd EY0.72%
FCF(TTM)0.46
FCFY0.53%
OCF(TTM)1.41
OCFY1.6%
SpS8.41
BVpS6.07
TBVpS6.04
PEG (NY)N/A
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 | 14.63 |
F-Score6
WACC9.33%
ROIC/WACC0.4
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%3200%
EPS Next Y-42.45%
EPS Next 2Y-13.16%
EPS Next 3Y7.77%
EPS Next 5Y17.35%
Revenue 1Y (TTM)32.25%
Revenue growth 3Y24.44%
Revenue growth 5YN/A
Sales Q2Q%28.35%
Revenue Next Year23.59%
Revenue Next 2Y22.73%
Revenue Next 3Y21.55%
Revenue Next 5Y19.82%
EBIT growth 1Y210.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year256.79%
EBIT Next 3Y79.39%
EBIT Next 5Y54.01%
FCF growth 1Y226.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.83%
OCF growth 3Y262.05%
OCF growth 5YN/A