CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
463.09 USD
+20.51 (+4.63%)
458.46 USD
-4.63 (-1%)
Overall CVNA gets a fundamental rating of 5 out of 10. We evaluated CVNA against 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CVNA get a neutral evaluation. Nothing too spectacular is happening here. CVNA shows excellent growth, but is valued quite expensive already. These ratings could make CVNA a good candidate 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
Looking at the Return On Assets, with a value of 6.38%, CVNA is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
With an excellent Return On Equity value of 27.60%, CVNA belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
CVNA has a Return On Invested Capital of 17.57%. This is amongst the best in the industry. CVNA outperforms 86.07% of its industry peers.
| 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
With a decent Profit Margin value of 3.44%, CVNA is doing good in the industry, outperforming 71.31% of the companies in the same industry.
CVNA has a better Operating Margin (9.40%) than 81.15% of its industry peers.
CVNA's Gross Margin of 21.37% is on the low side compared to the rest of the industry. CVNA is outperformed by 79.51% of its industry peers.
In the last couple of years the Gross Margin of CVNA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CVNA is creating value.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
Compared to 5 years ago, CVNA has more shares outstanding
Compared to 1 year ago, CVNA has an improved debt to assets ratio.
2.2 Solvency
CVNA has an Altman-Z score of 10.86. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
CVNA's Altman-Z score of 10.86 is amongst the best of the industry. CVNA outperforms 97.54% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.53, CVNA is in line with its industry, outperforming 56.56% of the companies in the same industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CVNA has dependencies on debt financing.
With a Debt to Equity ratio value of 2.14, CVNA is not doing good in the industry: 69.67% of the companies in the same industry are doing better.
| 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.
With an excellent Current ratio value of 4.05, CVNA belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
A Quick Ratio of 2.55 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Quick ratio (2.55) than 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
The Revenue is expected to grow by 27.94% on average over the next years. This is a very strong growth
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
Based on the Price/Earnings ratio of 105.73, the valuation of CVNA can be described as expensive.
CVNA's Price/Earnings ratio is in line with the industry average.
CVNA is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 64.40 indicates a quite expensive valuation of CVNA.
The rest of the industry has a similar Price/Forward Earnings ratio as CVNA.
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
68.03% of the companies in the same industry are cheaper than CVNA, based on the Enterprise Value to EBITDA ratio.
CVNA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 184.51 | ||
| EV/EBITDA | 51.94 |
4.3 Compensation for Growth
CVNA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CVNA's earnings are expected to grow with 84.98% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y114.01%
EPS Next 3Y84.98%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| 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%.