CVNA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valued quite expensive, but it does show an excellent growth. These ratings would make CVNA suitable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CVNA was profitable.
In the past year CVNA had a positive cash flow from operations.
In multiple years CVNA reported negative net income over the last 5 years.
In multiple years CVNA reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of CVNA (6.38%) is better than 75.21% of its industry peers.
Looking at the Return On Equity, with a value of 27.60%, CVNA belongs to the top of the industry, outperforming 86.78% of the companies in the same industry.
CVNA has a better Return On Invested Capital (17.57%) than 85.95% 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

The Profit Margin of CVNA (3.44%) is better than 71.07% of its industry peers.
With an excellent Operating Margin value of 9.40%, CVNA belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
With a Gross Margin value of 21.37%, CVNA is not doing good in the industry: 79.34% of the companies in the same industry are doing better.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, CVNA has more shares outstanding
Compared to 5 years ago, CVNA has more shares outstanding
CVNA has a better debt/assets ratio than last year.

2.2 Solvency

CVNA has an Altman-Z score of 11.04. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
CVNA has a better Altman-Z score (11.04) than 97.52% 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.
CVNA has a Debt to FCF ratio (9.53) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CVNA has dependencies on debt financing.
The Debt to Equity ratio of CVNA (2.14) is worse than 69.42% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.14
Debt/FCF	9.53
Altman-Z	11.04

ROIC/WACC1.84

WACC9.57%

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.
CVNA has a better Current ratio (4.05) than 93.39% of its industry peers.
A Quick Ratio of 2.55 indicates that CVNA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.55, CVNA belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	4.05
Quick Ratio	2.55

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 43700.00% over the past year.
Looking at the last year, CVNA shows a very strong growth in Revenue. The Revenue has grown by 45.55%.
Measured over the past years, CVNA shows a very strong growth in Revenue. The Revenue has been growing by 28.25% on average per year.

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
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 27.94% on average per year.

EPS Next Y234.73%

EPS Next 2Y113.36%

EPS Next 3Y86.22%

EPS Next 5Y49.29%

Revenue Next Year48.5%

Revenue Next 2Y37.78%

Revenue Next 3Y33.03%

Revenue Next 5Y27.94%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 108.06, which means the current valuation is very expensive for CVNA.
Compared to the rest of the industry, the Price/Earnings ratio of CVNA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.21, CVNA is valued quite expensively.
With a Price/Forward Earnings ratio of 66.23, CVNA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as CVNA.
The average S&P500 Price/Forward Earnings ratio is at 25.98. CVNA is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	108.06
Fwd PE	66.23

4.2 Price Multiples

68.59% of the companies in the same industry are cheaper than CVNA, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVNA.

		Industry Rank	Sector Rank
P/FCF	188.58
EV/EBITDA	53.06

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.
CVNA's earnings are expected to grow with 86.22% in the coming years. This may justify a more expensive valuation.