CARVANA CO (CVNA)
US1468691027 - Common Stock
Taking everything into account, CVNA scores 4 out of 10 in our fundamental rating. CVNA was compared to 123 industry peers in the Specialty Retail industry. CVNA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CVNA is valued quite expensive, but it does show an excellent growth.
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 the past 5 years CVNA reported 4 times negative net income.
In the past 5 years CVNA reported 4 times negative operating cash flow.
1.2 Ratios
CVNA has a Return On Assets (0.23%) which is comparable to the rest of the industry.
CVNA has a Return On Equity of 2.78%. This is comparable to the rest of the industry: CVNA outperforms 56.20% of its industry peers.
The Return On Invested Capital of CVNA (9.45%) is better than 75.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 2.78% | ||
| ROIC | 9.45% |
ROA(3y)-4.6%
ROA(5y)-5.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVNA has a Profit Margin (0.14%) which is in line with its industry peers.
CVNA has a better Operating Margin (5.52%) than 69.42% of its industry peers.
Looking at the Gross Margin, with a value of 20.04%, CVNA is doing worse than 80.17% of the companies in the same industry.
CVNA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.52% | ||
| PM (TTM) | 0.14% | ||
| GM | 20.04% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y9.7%
2. Health
2.1 Basic Checks
CVNA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CVNA has more shares outstanding
The number of shares outstanding for CVNA has been increased compared to 5 years ago.
Compared to 1 year ago, CVNA has an improved debt to assets ratio.
2.2 Solvency
CVNA has an Altman-Z score of 6.73. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CVNA (6.73) is better than 94.21% of its industry peers.
CVNA has a debt to FCF ratio of 10.70. This is a negative value and a sign of low solvency as CVNA would need 10.70 years to pay back of all of its debts.
CVNA has a Debt to FCF ratio of 10.70. This is comparable to the rest of the industry: CVNA outperforms 52.07% of its industry peers.
CVNA has a Debt/Equity ratio of 9.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.01, CVNA is not doing good in the industry: 80.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.01 | ||
| Debt/FCF | 10.7 | ||
| Altman-Z | 6.73 |
ROIC/WACC0.98
WACC9.69%
2.3 Liquidity
CVNA has a Current Ratio of 3.25. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
CVNA has a Current ratio of 3.25. This is amongst the best in the industry. CVNA outperforms 92.56% of its industry peers.
A Quick Ratio of 2.12 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Quick ratio (2.12) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.47%, which is quite impressive.
The Revenue has grown by 12.21% in the past year. This is quite good.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.68% yearly.
EPS 1Y (TTM)100.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%239.13%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y24.46%
Revenue growth 5Y40.68%
Sales Q2Q%31.81%
3.2 Future
The Earnings Per Share is expected to grow by 24.36% on average over the next years. This is a very strong growth
CVNA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.99% yearly.
EPS Next Y137.61%
EPS Next 2Y63.73%
EPS Next 3Y47.99%
EPS Next 5Y24.36%
Revenue Next Year22.99%
Revenue Next 2Y19.94%
Revenue Next 3Y19.14%
Revenue Next 5Y16.99%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24838.00, which means the current valuation is very expensive for CVNA.
Based on the Price/Earnings ratio, CVNA is valued a bit more expensive than the industry average as 61.16% of the companies are valued more cheaply.
CVNA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 103.65 indicates a quite expensive valuation of CVNA.
Based on the Price/Forward Earnings ratio, CVNA is valued a bit more expensive than the industry average as 65.29% of the companies are valued more cheaply.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24838 | ||
| Fwd PE | 103.65 |
4.2 Price Multiples
65.29% 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 | 96.58 | ||
| EV/EBITDA | 56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CVNA's earnings are expected to grow with 47.99% in the coming years.
PEG (NY)180.5
PEG (5Y)N/A
EPS Next 2Y63.73%
EPS Next 3Y47.99%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARVANA CO
NYSE:CVNA (11/21/2024, 8:21:39 PM)
Premarket: 250.74 +2.36 (+0.95%)248.38
+3.88 (+1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24838 | ||
| Fwd PE | 103.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)180.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 2.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.52% | ||
| PM (TTM) | 0.14% | ||
| GM | 20.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)100.47%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y137.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.21%
Revenue growth 3Y24.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y