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 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!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 better Return On Assets (6.38%) than 75.41% of its industry peers.
CVNA's Return On Equity of 27.60% is amongst the best of the industry. CVNA outperforms 86.89% of its industry peers.
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 better Profit Margin (3.44%) than 71.31% of its industry peers.
Looking at the Operating Margin, with a value of 9.40%, CVNA belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
CVNA's Gross Margin of 21.37% is on the low side compared to the rest of the industry. CVNA is outperformed by 79.51% of its industry peers.
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%

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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.
The number of shares outstanding for CVNA has been increased compared to 5 years ago.
CVNA has a better debt/assets ratio than last year.

2.2 Solvency

CVNA has an Altman-Z score of 9.95. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
CVNA has a Altman-Z score of 9.95. This is amongst the best in the industry. CVNA outperforms 97.54% 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.
CVNA has a worse Debt to Equity ratio (2.14) than 69.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.14
Debt/FCF	9.53
Altman-Z	9.95

ROIC/WACC1.85

WACC9.49%

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 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.
CVNA has a better Quick ratio (2.55) than 91.80% of its industry peers.

		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

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.
Looking at the last year, CVNA shows a very strong growth in Revenue. 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

CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.29% yearly.
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

Based on the Price/Earnings ratio of 93.62, the valuation of CVNA can be described as expensive.
CVNA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (28.60), we can say CVNA is valued expensively.
The Price/Forward Earnings ratio is 57.37, which means the current valuation is very expensive for CVNA.
CVNA's Price/Forward Earnings is on the same level as the industry average.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	93.62
Fwd PE	57.37

4.2 Price Multiples

67.21% 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	163.37
EV/EBITDA	46.16

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.