CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
463.09 USD
+20.51 (+4.63%)
463.9 USD
+0.81 (+0.17%)
Taking everything into account, CVNA scores 5 out of 10 in our fundamental rating. CVNA was compared to 122 industry peers in the Specialty Retail industry. CVNA has only an average score on both its financial health and profitability. CVNA is valued quite expensive, but it does show an excellent growth. These ratings would make CVNA suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year CVNA was profitable.
CVNA had a positive operating cash flow in the past year.
In multiple years CVNA reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CVNA reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of CVNA (6.38%) is better than 75.41% of its industry peers.
CVNA has a Return On Equity of 27.60%. This is amongst the best in the industry. CVNA outperforms 86.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.57%, CVNA belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.6% | ||
| ROIC | 17.57% |
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVNA's Profit Margin of 3.44% is fine compared to the rest of the industry. CVNA outperforms 71.31% of its industry peers.
CVNA has a Operating Margin of 9.40%. This is amongst the best in the industry. CVNA outperforms 81.15% of its industry peers.
The Gross Margin of CVNA (21.37%) is worse than 79.51% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.4% | ||
| PM (TTM) | 3.44% | ||
| GM | 21.37% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.8%
GM growth 5Y10.37%
2. Health
2.1 Basic Checks
CVNA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
The number of shares outstanding for CVNA has been increased compared to 5 years ago.
CVNA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.86 indicates that CVNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.86, CVNA belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
CVNA has a debt to FCF ratio of 9.53. This is a negative value and a sign of low solvency as CVNA would need 9.53 years to pay back of all of its debts.
CVNA's Debt to FCF ratio of 9.53 is in line compared to the rest of the industry. CVNA outperforms 56.56% of its industry peers.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
CVNA has a Debt to Equity ratio of 2.14. This is in the lower half of the industry: CVNA underperforms 69.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 10.86 |
ROIC/WACC1.85
WACC9.52%
2.3 Liquidity
CVNA has a Current Ratio of 4.05. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.05, CVNA belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
CVNA has a Quick Ratio of 2.55. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Quick ratio of 2.55. This is amongst the best in the industry. CVNA outperforms 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43700.00%, which is quite impressive.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.55%.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.25% yearly.
EPS 1Y (TTM)43700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.94%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
3.2 Future
The Earnings Per Share is expected to grow by 49.29% on average over the next years. This is a very strong growth
CVNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.94% yearly.
EPS Next Y233.13%
EPS Next 2Y114.01%
EPS Next 3Y84.98%
EPS Next 5Y49.29%
Revenue Next Year48.02%
Revenue Next 2Y37.25%
Revenue Next 3Y33.03%
Revenue Next 5Y27.94%
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 105.73, which means the current valuation is very expensive for CVNA.
CVNA's Price/Earnings is on the same level as the industry average.
CVNA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 64.40, CVNA can be considered very expensive at the moment.
CVNA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.92. CVNA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.73 | ||
| Fwd PE | 64.4 |
4.2 Price Multiples
CVNA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CVNA is more expensive than 68.03% of the companies in the same industry.
CVNA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 184.51 | ||
| EV/EBITDA | 51.94 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVNA's earnings are expected to grow with 84.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y114.01%
EPS Next 3Y84.98%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
463.09
+20.51 (+4.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.05%
Inst Owner Change0.2%
Ins Owners2.14%
Ins Owner Change-2.26%
Market Cap100.74B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts81.21
Price Target448.25 (-3.2%)
Short Float %10.34%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.28%
Min EPS beat(2)-19.89%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)53.73%
Min EPS beat(4)-19.89%
Max EPS beat(4)130.76%
EPS beat(8)6
Avg EPS beat(8)97.4%
EPS beat(12)10
Avg EPS beat(12)84.87%
EPS beat(16)10
Avg EPS beat(16)52.77%
Revenue beat(2)2
Avg Revenue beat(2)6.22%
Min Revenue beat(2)3.4%
Max Revenue beat(2)9.04%
Revenue beat(4)4
Avg Revenue beat(4)5.4%
Min Revenue beat(4)3.4%
Max Revenue beat(4)9.04%
Revenue beat(8)7
Avg Revenue beat(8)4.34%
Revenue beat(12)8
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.45%
PT rev (1m)5.19%
PT rev (3m)8.27%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)8.78%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)3.8%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)8.8%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)5.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.73 | ||
| Fwd PE | 64.4 | ||
| P/S | 5.52 | ||
| P/FCF | 184.51 | ||
| P/OCF | 151.26 | ||
| P/B | 44.2 | ||
| P/tB | 44.95 | ||
| EV/EBITDA | 51.94 |
EPS(TTM)4.38
EY0.95%
EPS(NY)7.19
Fwd EY1.55%
FCF(TTM)2.51
FCFY0.54%
OCF(TTM)3.06
OCFY0.66%
SpS83.97
BVpS10.48
TBVpS10.3
PEG (NY)0.45
PEG (5Y)N/A
Graham Number32.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 27.6% | ||
| ROCE | 20.67% | ||
| ROIC | 17.57% | ||
| ROICexc | 23.6% | ||
| ROICexgc | 23.75% | ||
| OM | 9.4% | ||
| PM (TTM) | 3.44% | ||
| GM | 21.37% | ||
| FCFM | 2.99% |
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y11.8%
GM growth 5Y10.37%
F-Score8
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 42.86% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 5.04 | ||
| Cash Conversion | 33.35% | ||
| Profit Quality | 86.8% | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 10.86 |
F-Score8
WACC9.52%
ROIC/WACC1.85
Cap/Depr(3y)83.57%
Cap/Depr(5y)253.76%
Cap/Sales(3y)1.75%
Cap/Sales(5y)3.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60.94%
EPS Next Y233.13%
EPS Next 2Y114.01%
EPS Next 3Y84.98%
EPS Next 5Y49.29%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
Revenue Next Year48.02%
Revenue Next 2Y37.25%
Revenue Next 3Y33.03%
Revenue Next 5Y27.94%
EBIT growth 1Y147.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.59%
EBIT Next 3Y56.75%
EBIT Next 5Y41.43%
FCF growth 1Y215.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y119.8%
OCF growth 3YN/A
OCF growth 5YN/A
CARVANA CO / CVNA FAQ
What is the fundamental rating for CVNA stock?
ChartMill assigns a fundamental rating of 5 / 10 to CVNA.
Can you provide the valuation status for CARVANA CO?
ChartMill assigns a valuation rating of 3 / 10 to CARVANA CO (CVNA). This can be considered as Overvalued.
What is the profitability of CVNA stock?
CARVANA CO (CVNA) has a profitability rating of 5 / 10.
What is the financial health of CARVANA CO (CVNA) stock?
The financial health rating of CARVANA CO (CVNA) is 6 / 10.
How sustainable is the dividend of CARVANA CO (CVNA) stock?
The dividend rating of CARVANA CO (CVNA) is 0 / 10 and the dividend payout ratio is 0%.