CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
399.77 USD
+0.92 (+0.23%)
439 USD
+39.23 (+9.81%)
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 122 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA shows excellent growth, but is valued quite expensive already. 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.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple 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
CVNA has a Return On Assets of 6.38%. This is in the better half of the industry: CVNA outperforms 77.05% of its industry peers.
The Return On Equity of CVNA (27.60%) is better than 86.89% of its industry peers.
CVNA's Return On Invested Capital of 17.57% is amongst the best of the industry. CVNA outperforms 86.89% 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's Operating Margin of 9.40% is amongst the best of the industry. CVNA outperforms 80.33% of its industry peers.
With a Gross Margin value of 21.37%, CVNA is not doing good in the industry: 79.51% of the companies in the same industry are doing better.
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.
CVNA has more shares outstanding than it did 5 years ago.
CVNA has a better debt/assets ratio than last year.
2.2 Solvency
CVNA has an Altman-Z score of 9.75. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
CVNA has a Altman-Z score of 9.75. This is amongst the best in the industry. CVNA outperforms 98.36% of its industry peers.
The Debt to FCF ratio of CVNA is 9.53, which is on the high side as it means it would take CVNA, 9.53 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.53, CVNA perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
CVNA has a worse Debt to Equity ratio (2.14) than 71.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 9.75 |
ROIC/WACC1.91
WACC9.18%
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 Current ratio of 4.05. This is amongst the best in the industry. CVNA outperforms 95.08% of its industry peers.
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.
The Quick ratio of CVNA (2.55) is better than 94.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43700.00% over the past year.
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 48.65% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 28.13% on average over the next years. This is a very strong growth
EPS Next Y218.89%
EPS Next 2Y110.86%
EPS Next 3Y80.86%
EPS Next 5Y48.65%
Revenue Next Year46.23%
Revenue Next 2Y35.93%
Revenue Next 3Y32.06%
Revenue Next 5Y28.13%
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
With a Price/Earnings ratio of 91.27, CVNA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CVNA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.46. CVNA is valued rather expensively when compared to this.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 57.27.
CVNA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CVNA to the average of the S&P500 Index (36.10), we can say CVNA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.27 | ||
| Fwd PE | 57.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 67.21% of the companies in the same industry.
CVNA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.28 | ||
| EV/EBITDA | 44.94 |
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.
A more expensive valuation may be justified as CVNA's earnings are expected to grow with 80.86% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y110.86%
EPS Next 3Y80.86%
5. Dividend
5.1 Amount
CVNA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
399.77
+0.92 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change19.18%
Ins Owners2.2%
Ins Owner Change-3.63%
Market Cap86.97B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts80.65
Price Target426.15 (6.6%)
Short Float %8.34%
Short Ratio3.6
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)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)-0.23%
PT rev (3m)2.66%
EPS NQ rev (1m)1%
EPS NQ rev (3m)4.63%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)6.69%
Revenue NQ rev (3m)8.8%
Revenue NY rev (1m)3.78%
Revenue NY rev (3m)4.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.27 | ||
| Fwd PE | 57.27 | ||
| P/S | 4.76 | ||
| P/FCF | 159.28 | ||
| P/OCF | 130.58 | ||
| P/B | 38.16 | ||
| P/tB | 38.81 | ||
| EV/EBITDA | 44.94 |
EPS(TTM)4.38
EY1.1%
EPS(NY)6.98
Fwd EY1.75%
FCF(TTM)2.51
FCFY0.63%
OCF(TTM)3.06
OCFY0.77%
SpS83.97
BVpS10.48
TBVpS10.3
PEG (NY)0.42
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 | 9.75 |
F-Score8
WACC9.18%
ROIC/WACC1.91
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 Y218.89%
EPS Next 2Y110.86%
EPS Next 3Y80.86%
EPS Next 5Y48.65%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
Revenue Next Year46.23%
Revenue Next 2Y35.93%
Revenue Next 3Y32.06%
Revenue Next 5Y28.13%
EBIT growth 1Y147.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year124.64%
EBIT Next 3Y52.89%
EBIT Next 5Y38.7%
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 ChartMill fundamental rating of CARVANA CO (CVNA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CVNA.
What is the valuation status for CVNA stock?
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.
How financially healthy is CARVANA CO?
The financial health rating of CARVANA CO (CVNA) is 6 / 10.
Is the dividend of CARVANA CO sustainable?
The dividend rating of CARVANA CO (CVNA) is 0 / 10 and the dividend payout ratio is 0%.