CARVANA CO (CVNA) Stock Fundamental Analysis
NYSE:CVNA - New York Stock Exchange, Inc. - US1468691027 - Common Stock - Currency: USD
CVNA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. CVNA has an excellent financial health rating, but there are some minor concerns on its profitability. CVNA shows excellent growth, but is valued quite expensive already. With these ratings, CVNA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
CVNA had positive earnings in the past year.
In the past year CVNA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple years.
In multiple years CVNA reported negative operating cash flow during the last 5 years.
1.2 Ratios
CVNA has a Return On Assets of 4.48%. This is in the better half of the industry: CVNA outperforms 66.12% of its industry peers.
With an excellent Return On Equity value of 26.46%, CVNA belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.11%, CVNA belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 26.46% | ||
| ROIC | 14.11% |
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
Looking at the Profit Margin, with a value of 2.68%, CVNA is in the better half of the industry, outperforming 65.29% of the companies in the same industry.
CVNA's Operating Margin of 8.42% is amongst the best of the industry. CVNA outperforms 80.17% of its industry peers.
CVNA has a worse Gross Margin (21.65%) than 79.34% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 2.68% | ||
| GM | 21.65% |
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 just above the Cost of Capital (WACC), so CVNA is still creating some 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
The debt/assets ratio for CVNA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.48 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a Altman-Z score of 8.48. This is amongst the best in the industry. CVNA outperforms 98.35% of its industry peers.
The Debt to FCF ratio of CVNA is 5.94, which is a neutral value as it means it would take CVNA, 5.94 years of fcf income to pay off all of its debts.
CVNA has a better Debt to FCF ratio (5.94) than 62.81% of its industry peers.
A Debt/Equity ratio of 3.55 is on the high side and indicates that CVNA has dependencies on debt financing.
CVNA's Debt to Equity ratio of 3.55 is on the low side compared to the rest of the industry. CVNA is outperformed by 76.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 8.48 |
ROIC/WACC1.53
WACC9.21%
2.3 Liquidity
CVNA has a Current Ratio of 3.81. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA's Current ratio of 3.81 is amongst the best of the industry. CVNA outperforms 95.04% of its industry peers.
CVNA has a Quick Ratio of 2.70. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a better Quick ratio (2.70) than 96.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.81 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 260.11% over the past year.
The Revenue has grown by 32.23% in the past year. This is a very strong growth!
The Revenue has been growing by 28.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%
3.2 Future
CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.89% yearly.
The Revenue is expected to grow by 18.05% on average over the next years. This is quite good.
EPS Next Y189.36%
EPS Next 2Y93.02%
EPS Next 3Y64.31%
EPS Next 5Y42.89%
Revenue Next Year31.64%
Revenue Next 2Y26.65%
Revenue Next 3Y25.17%
Revenue Next 5Y18.06%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
CVNA is valuated quite expensively with a Price/Earnings ratio of 120.59.
CVNA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CVNA is valued quite expensively.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 58.76.
Based on the Price/Forward Earnings ratio, CVNA is valued a bit more expensive than the industry average as 61.98% of the companies are valued more cheaply.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.59 | ||
| Fwd PE | 58.76 |
4.2 Price Multiples
66.94% of the companies in the same industry are cheaper than CVNA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVNA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.55 | ||
| EV/EBITDA | 50.27 |
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 64.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y93.02%
EPS Next 3Y64.31%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
343.67
-1.88 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.99%
Inst Owner Change0.02%
Ins Owners2.83%
Ins Owner Change-0.88%
Market Cap73.59B
Analysts77.04
Price Target307.47 (-10.53%)
Short Float %8.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)110.73%
Min EPS beat(2)90.71%
Max EPS beat(2)130.76%
EPS beat(4)4
Avg EPS beat(4)169.37%
Min EPS beat(4)90.71%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)111.76%
EPS beat(12)9
Avg EPS beat(12)81.47%
EPS beat(16)10
Avg EPS beat(16)62.17%
Revenue beat(2)2
Avg Revenue beat(2)4.59%
Min Revenue beat(2)4.24%
Max Revenue beat(2)4.94%
Revenue beat(4)4
Avg Revenue beat(4)4.01%
Min Revenue beat(4)3.05%
Max Revenue beat(4)4.94%
Revenue beat(8)6
Avg Revenue beat(8)4.07%
Revenue beat(12)6
Avg Revenue beat(12)0.45%
Revenue beat(16)10
Avg Revenue beat(16)3%
PT rev (1m)17.58%
PT rev (3m)18.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.33%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)60%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)8.25%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.59 | ||
| Fwd PE | 58.76 | ||
| P/S | 4.96 | ||
| P/FCF | 77.55 | ||
| P/OCF | 70.16 | ||
| P/B | 48.93 | ||
| P/tB | 50.17 | ||
| EV/EBITDA | 50.27 |
EPS(TTM)2.85
EY0.83%
EPS(NY)5.85
Fwd EY1.7%
FCF(TTM)4.43
FCFY1.29%
OCF(TTM)4.9
OCFY1.43%
SpS69.32
BVpS7.02
TBVpS6.85
PEG (NY)0.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 26.46% | ||
| ROCE | 16.6% | ||
| ROIC | 14.11% | ||
| ROICexc | 18.68% | ||
| ROICexgc | 18.8% | ||
| OM | 8.42% | ||
| PM (TTM) | 2.68% | ||
| GM | 21.65% | ||
| FCFM | 6.39% |
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
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 3Y11.8%
GM growth 5Y10.37%
F-Score7
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 5.94 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 33.78% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 5.53 | ||
| Cash Conversion | 67.85% | ||
| Profit Quality | 238.44% | ||
| Current Ratio | 3.81 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 8.48 |
F-Score7
WACC9.21%
ROIC/WACC1.53
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)260.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%556.52%
EPS Next Y189.36%
EPS Next 2Y93.02%
EPS Next 3Y64.31%
EPS Next 5Y42.89%
Revenue 1Y (TTM)32.23%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%38.26%
Revenue Next Year31.64%
Revenue Next 2Y26.65%
Revenue Next 3Y25.17%
Revenue Next 5Y18.06%
EBIT growth 1Y551.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year112.74%
EBIT Next 3Y48%
EBIT Next 5Y32.3%
FCF growth 1Y184.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y231.62%
OCF growth 3YN/A
OCF growth 5YN/A