CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
309.88 USD
-3.37 (-1.08%)
312 USD
+2.12 (+0.68%)
Taking everything into account, CVNA scores 5 out of 10 in our fundamental rating. CVNA was compared to 122 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA is valued quite expensively, but it does show have an excellent growth rating. These ratings could make CVNA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
CVNA had positive earnings in the past year.
CVNA had a positive operating cash flow in the past year.
In multiple years CVNA reported negative net income over the last 5 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's Return On Assets of 6.38% is fine compared to the rest of the industry. CVNA outperforms 76.23% of its industry peers.
CVNA has a better Return On Equity (27.60%) than 85.25% of its industry peers.
CVNA has a better Return On Invested Capital (17.57%) than 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
Looking at the Profit Margin, with a value of 3.44%, CVNA is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
Looking at the Operating Margin, with a value of 9.40%, CVNA belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
CVNA has a worse Gross Margin (21.37%) than 80.33% of its industry peers.
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%
2. Health
2.1 Basic Checks
CVNA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CVNA has more shares outstanding than it did 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
An Altman-Z score of 8.22 indicates that CVNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.22, CVNA belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 9.53, CVNA is in line with its industry, outperforming 55.74% of the companies in the same industry.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CVNA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.14, CVNA is doing worse than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 8.22 |
ROIC/WACC1.97
WACC8.9%
2.3 Liquidity
A Current Ratio of 4.05 indicates that CVNA has no problem at all paying its short term obligations.
The Current ratio of CVNA (4.05) is better than 95.08% of its industry peers.
A Quick Ratio of 2.55 indicates that CVNA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.55, CVNA belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
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%.
Measured over the past years, CVNA shows a very strong growth in Revenue. The Revenue has been growing by 28.25% on average per year.
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
The Price/Earnings ratio is 70.75, which means the current valuation is very expensive for CVNA.
Compared to the rest of the industry, the Price/Earnings ratio of CVNA is on the same level as its industry peers.
CVNA is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 44.39, CVNA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVNA indicates a slightly more expensive valuation: CVNA is more expensive than 60.66% of the companies listed in the same industry.
CVNA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.75 | ||
| Fwd PE | 44.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVNA indicates a slightly more expensive valuation: CVNA is more expensive than 67.21% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVNA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 122.14 | ||
| EV/EBITDA | 35.25 |
4.3 Compensation for Growth
CVNA's 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)0.32
PEG (5Y)N/A
EPS Next 2Y110.86%
EPS Next 3Y80.86%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
309.88
-3.37 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change18.62%
Ins Owners2.29%
Ins Owner Change-4.1%
Market Cap66.69B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts79.31
Price Target425.78 (37.4%)
Short Float %8.01%
Short Ratio3.43
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)2.84%
PT rev (3m)7.01%
EPS NQ rev (1m)8.08%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)7.31%
Revenue NQ rev (3m)11.57%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)9.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.75 | ||
| Fwd PE | 44.39 | ||
| P/S | 3.65 | ||
| P/FCF | 122.14 | ||
| P/OCF | 100.13 | ||
| P/B | 29.26 | ||
| P/tB | 29.76 | ||
| EV/EBITDA | 35.25 |
EPS(TTM)4.38
EY1.41%
EPS(NY)6.98
Fwd EY2.25%
FCF(TTM)2.54
FCFY0.82%
OCF(TTM)3.09
OCFY1%
SpS84.88
BVpS10.59
TBVpS10.41
PEG (NY)0.32
PEG (5Y)N/A
Graham Number32.31
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 | 8.22 |
F-Score8
WACC8.9%
ROIC/WACC1.97
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%.