CVNA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. CVNA has only an average score on both its financial health and profitability. CVNA is valued quite expensively, but it does show have an excellent growth rating. With these ratings, CVNA could be worth investigating further 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.
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

With a decent Return On Assets value of 6.38%, CVNA is doing good in the industry, outperforming 75.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.60%, CVNA belongs to the top 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

CVNA has a Profit Margin of 3.44%. This is in the better half of the industry: CVNA outperforms 71.31% of its industry peers.
With an excellent Operating Margin value of 9.40%, CVNA belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
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.
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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
CVNA has a better debt/assets ratio than last year.

2.2 Solvency

CVNA has an Altman-Z score of 10.25. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
CVNA has a Altman-Z score of 10.25. This is amongst the best in the industry. CVNA outperforms 97.54% 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.
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.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
CVNA's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. CVNA is outperformed by 69.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.14
Debt/FCF	9.53
Altman-Z	10.25

ROIC/WACC1.85

WACC9.51%

2.3 Liquidity

A Current Ratio of 4.05 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a Current ratio of 4.05. This is amongst the best in the industry. CVNA outperforms 93.44% 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.
Looking at the Quick ratio, with a value of 2.55, CVNA belongs to the top of the industry, outperforming 91.80% 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

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Altman-Z score

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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%.
The Revenue has been growing by 28.25% on average over the past years. This is a very strong growth!

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

Based on estimates for the next years, CVNA will show a very strong growth in Earnings Per Share. The EPS will grow by 49.29% on average per year.
CVNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.94% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 91.52, CVNA can be considered very expensive at the moment.
CVNA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (28.39), we can say CVNA is valued expensively.
A Price/Forward Earnings ratio of 56.09 indicates a quite expensive valuation of CVNA.
CVNA's Price/Forward Earnings ratio is in line with the industry average.
CVNA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	91.52
Fwd PE	56.09

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.
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	159.71
EV/EBITDA	48.06

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 86.22% in the coming years. This may justify a more expensive valuation.