Overall CVNA gets a fundamental rating of 5 out of 10. We evaluated CVNA 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!

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

CVNA has a Return On Assets of 6.38%. This is in the better half of the industry: CVNA outperforms 75.41% of its industry peers.
CVNA has a better Return On Equity (27.60%) than 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

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.
CVNA has a Operating Margin of 9.40%. This is amongst the best in the industry. CVNA outperforms 81.15% of its industry peers.
CVNA has a Gross Margin of 21.37%. This is in the lower half of the industry: CVNA underperforms 79.51% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

An Altman-Z score of 11.11 indicates that CVNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.11, 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.
CVNA has a Debt to FCF ratio (9.53) which is comparable to the rest of the 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	11.11

ROIC/WACC1.85

WACC9.51%

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 better Current ratio (4.05) than 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 Quick ratio of 2.55. This is amongst the best in the industry. CVNA outperforms 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.
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

The Earnings Per Share is expected to grow by 49.29% on average over the next years. This is a very strong growth
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

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 109.07 indicates a quite expensive valuation of CVNA.
The rest of the industry has a similar Price/Earnings ratio as CVNA.
The average S&P500 Price/Earnings ratio is at 28.87. CVNA is valued rather expensively when compared to this.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 66.84.
CVNA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.96. CVNA is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	109.07
Fwd PE	66.84

4.2 Price Multiples

CVNA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CVNA is more expensive than 68.85% of the companies in the same industry.
CVNA's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	190.34
EV/EBITDA	53.54

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 86.22% in the coming years.