CARVANA CO (CVNA) Stock Fundamental Analysis
USA - NYSE:CVNA - US1468691027 - Common Stock
306.54 USD
+1.47 (+0.48%)
307 USD
+0.46 (+0.15%)
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 121 industry peers in the Specialty Retail industry. CVNA has only an average score on both its financial health and profitability. CVNA shows excellent growth, but is valued quite expensive already. With these ratings, CVNA could be worth investigating further for growth investing!.
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.
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 has a Return On Assets of 6.01%. This is in the better half of the industry: CVNA outperforms 76.03% of its industry peers.
CVNA has a Return On Equity of 32.54%. This is amongst the best in the industry. CVNA outperforms 86.78% of its industry peers.
CVNA's Return On Invested Capital of 16.05% is amongst the best of the industry. CVNA outperforms 86.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 32.54% | ||
| ROIC | 16.05% |
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 3.46%, CVNA is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
The Operating Margin of CVNA (9.23%) is better than 80.17% of its industry peers.
CVNA has a Gross Margin of 21.89%. This is in the lower half of the industry: CVNA underperforms 78.51% of its industry peers.
In the last couple of years the Gross Margin of CVNA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 3.46% | ||
| GM | 21.89% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVNA is creating some value.
CVNA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVNA has more shares outstanding
The debt/assets ratio for CVNA has been reduced compared to a year ago.
2.2 Solvency
CVNA has an Altman-Z score of 7.82. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.82, CVNA belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
The Debt to FCF ratio of CVNA is 9.28, which is on the high side as it means it would take CVNA, 9.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVNA (9.28) is comparable to the rest of the industry.
CVNA has a Debt/Equity ratio of 3.12. This is a high value indicating a heavy dependency on external financing.
CVNA has a Debt to Equity ratio of 3.12. This is in the lower half of the industry: CVNA underperforms 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 7.82 |
ROIC/WACC1.77
WACC9.07%
2.3 Liquidity
CVNA has a Current Ratio of 4.00. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CVNA (4.00) is better than 95.04% of its industry peers.
A Quick Ratio of 2.58 indicates that CVNA has no problem at all paying its short term obligations.
CVNA has a better Quick ratio (2.58) than 94.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43700.00% over the past year.
CVNA shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.94%.
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)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
3.2 Future
The Earnings Per Share is expected to grow by 47.10% on average over the next years. This is a very strong growth
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 27.61% on average per year.
EPS Next Y218.99%
EPS Next 2Y105.34%
EPS Next 3Y79.93%
EPS Next 5Y47.1%
Revenue Next Year40.91%
Revenue Next 2Y33.04%
Revenue Next 3Y31.09%
Revenue Next 5Y27.61%
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 69.99, which means the current valuation is very expensive for CVNA.
CVNA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.10. CVNA is valued rather expensively when compared to this.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 46.31.
CVNA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CVNA is more expensive than 60.33% of the companies in the same industry.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.99 | ||
| Fwd PE | 46.31 |
4.2 Price Multiples
66.12% of the companies in the same industry are cheaper than CVNA, based on the Enterprise Value to EBITDA ratio.
CVNA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.26 | ||
| EV/EBITDA | 38.79 |
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 79.93% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y105.34%
EPS Next 3Y79.93%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
306.54
+1.47 (+0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change-0.05%
Ins Owners2.29%
Ins Owner Change-3.75%
Market Cap65.97B
Revenue(TTM)13.67B
Net Income(TTM)563.00M
Analysts77.93
Price Target425.78 (38.9%)
Short Float %7.49%
Short Ratio3.79
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)2
Avg EPS beat(2)72.04%
Min EPS beat(2)13.33%
Max EPS beat(2)130.76%
EPS beat(4)4
Avg EPS beat(4)96.22%
Min EPS beat(4)13.33%
Max EPS beat(4)150.09%
EPS beat(8)7
Avg EPS beat(8)105.29%
EPS beat(12)10
Avg EPS beat(12)83.64%
EPS beat(16)10
Avg EPS beat(16)51.94%
Revenue beat(2)2
Avg Revenue beat(2)3.82%
Min Revenue beat(2)3.4%
Max Revenue beat(2)4.24%
Revenue beat(4)4
Avg Revenue beat(4)4.09%
Min Revenue beat(4)3.4%
Max Revenue beat(4)4.94%
Revenue beat(8)6
Avg Revenue beat(8)2.93%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)10
Avg Revenue beat(16)1.15%
PT rev (1m)0%
PT rev (3m)26.13%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)8.64%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)7.47%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)9.86%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.99 | ||
| Fwd PE | 46.31 | ||
| P/S | 4.05 | ||
| P/FCF | 107.26 | ||
| P/OCF | 91.12 | ||
| P/B | 38.13 | ||
| P/tB | 38.9 | ||
| EV/EBITDA | 38.79 |
EPS(TTM)4.38
EY1.43%
EPS(NY)6.62
Fwd EY2.16%
FCF(TTM)2.86
FCFY0.93%
OCF(TTM)3.36
OCFY1.1%
SpS75.62
BVpS8.04
TBVpS7.88
PEG (NY)0.32
PEG (5Y)N/A
Graham Number28.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 32.54% | ||
| ROCE | 18.9% | ||
| ROIC | 16.05% | ||
| ROICexc | 20.89% | ||
| ROICexgc | 21% | ||
| OM | 9.23% | ||
| PM (TTM) | 3.46% | ||
| GM | 21.89% | ||
| FCFM | 3.78% |
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-Score7
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.12 | ||
| Debt/FCF | 9.28 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | 40.45% | ||
| Profit Quality | 109.24% | ||
| Current Ratio | 4 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z | 7.82 |
F-Score7
WACC9.07%
ROIC/WACC1.77
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 Y218.99%
EPS Next 2Y105.34%
EPS Next 3Y79.93%
EPS Next 5Y47.1%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
Revenue Next Year40.91%
Revenue Next 2Y33.04%
Revenue Next 3Y31.09%
Revenue Next 5Y27.61%
EBIT growth 1Y274.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year124.64%
EBIT Next 3Y52.89%
EBIT Next 5Y37.48%
FCF growth 1Y203.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y283.76%
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%.