CARVANA CO (CVNA) Stock Fundamental Analysis
NYSE:CVNA - New York Stock Exchange, Inc. - US1468691027 - Common Stock - Currency: USD
Overall CVNA gets a fundamental rating of 5 out of 10. We evaluated CVNA against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of CVNA get a neutral evaluation. Nothing too spectacular is happening here. CVNA is valued quite expensive, but it does show an excellent growth.
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.
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 (2.48%) which is comparable to the rest of the industry.
CVNA's Return On Equity of 16.67% is fine compared to the rest of the industry. CVNA outperforms 74.58% of its industry peers.
CVNA has a Return On Invested Capital of 11.76%. This is in the better half of the industry: CVNA outperforms 79.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 16.67% | ||
| ROIC | 11.76% |
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
The Profit Margin of CVNA (1.54%) is comparable to the rest of the industry.
CVNA's Operating Margin of 7.24% is fine compared to the rest of the industry. CVNA outperforms 77.12% of its industry peers.
CVNA has a Gross Margin of 21.03%. This is amonst the worse of the industry: CVNA underperforms 80.51% of its industry peers.
CVNA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 1.54% | ||
| GM | 21.03% |
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 just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for CVNA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.28 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a Altman-Z score of 6.28. This is amongst the best in the industry. CVNA outperforms 94.92% of its industry peers.
CVNA has a debt to FCF ratio of 6.81. This is a slightly negative value and a sign of low solvency as CVNA would need 6.81 years to pay back of all of its debts.
CVNA has a Debt to FCF ratio of 6.81. This is comparable to the rest of the industry: CVNA outperforms 57.63% of its industry peers.
A Debt/Equity ratio of 4.22 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 4.22, CVNA is doing worse than 78.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.23
WACC9.59%
2.3 Liquidity
A Current Ratio of 3.64 indicates that CVNA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.64, CVNA belongs to the top of the industry, outperforming 94.07% of the companies in the same industry.
CVNA has a Quick Ratio of 2.44. This indicates that CVNA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CVNA (2.44) is better than 94.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.44 |
3. Growth
3.1 Past
CVNA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.60%, which is quite impressive.
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)144.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%156%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%46.33%
3.2 Future
The Earnings Per Share is expected to grow by 42.80% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.39% on average over the next years. This is a very strong growth
EPS Next Y48.47%
EPS Next 2Y64.16%
EPS Next 3Y52.57%
EPS Next 5Y42.8%
Revenue Next Year18.01%
Revenue Next 2Y18.16%
Revenue Next 3Y17.13%
Revenue Next 5Y22.39%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 139.78, 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.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (29.75), we can say CVNA is valued expensively.
Based on the Price/Forward Earnings ratio of 94.14, the valuation of CVNA can be described as expensive.
CVNA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CVNA is more expensive than 64.41% of the companies in the same industry.
CVNA is valuated expensively when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.78 | ||
| Fwd PE | 94.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than the industry average as 64.41% of the companies are valued more cheaply.
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 | 55.1 | ||
| EV/EBITDA | 40.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CVNA does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as CVNA's earnings are expected to grow with 52.57% in the coming years.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y64.16%
EPS Next 3Y52.57%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
219.45
-13.65 (-5.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.22%
Inst Owner Change5.51%
Ins Owners1.79%
Ins Owner Change-3.95%
Market Cap45.56B
Analysts74.67
Price Target250.93 (14.34%)
Short Float %8.65%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.03
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)124.18%
Min EPS beat(2)88.58%
Max EPS beat(2)159.78%
EPS beat(4)4
Avg EPS beat(4)171.21%
Min EPS beat(4)88.58%
Max EPS beat(4)305.93%
EPS beat(8)7
Avg EPS beat(8)99.59%
EPS beat(12)8
Avg EPS beat(12)63.41%
EPS beat(16)10
Avg EPS beat(16)56.52%
Revenue beat(2)2
Avg Revenue beat(2)4.37%
Min Revenue beat(2)3.81%
Max Revenue beat(2)4.94%
Revenue beat(4)4
Avg Revenue beat(4)6.01%
Min Revenue beat(4)3.05%
Max Revenue beat(4)12.25%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)3.55%
PT rev (1m)0.6%
PT rev (3m)2.85%
EPS NQ rev (1m)3.66%
EPS NQ rev (3m)20.97%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)5.68%
Revenue NQ rev (3m)7.08%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.78 | ||
| Fwd PE | 94.14 | ||
| P/S | 3.33 | ||
| P/FCF | 55.1 | ||
| P/OCF | 49.63 | ||
| P/B | 36.16 | ||
| P/tB | 37.17 | ||
| EV/EBITDA | 40.35 |
EPS(TTM)1.57
EY0.72%
EPS(NY)2.33
Fwd EY1.06%
FCF(TTM)3.98
FCFY1.82%
OCF(TTM)4.42
OCFY2.01%
SpS65.85
BVpS6.07
TBVpS5.9
PEG (NY)2.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 16.67% | ||
| ROCE | 13.85% | ||
| ROIC | 11.76% | ||
| ROICexc | 15.44% | ||
| ROICexgc | 15.53% | ||
| OM | 7.24% | ||
| PM (TTM) | 1.54% | ||
| GM | 21.03% | ||
| FCFM | 6.05% |
ROA(3y)-3.14%
ROA(5y)-3.39%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 29.84% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 8.61 | ||
| Cash Conversion | 70.89% | ||
| Profit Quality | 393.81% | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.44 | ||
| Altman-Z | 6.28 |
F-Score7
WACC9.59%
ROIC/WACC1.23
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)144.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%156%
EPS Next Y48.47%
EPS Next 2Y64.16%
EPS Next 3Y52.57%
EPS Next 5Y42.8%
Revenue 1Y (TTM)26.94%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%46.33%
Revenue Next Year18.01%
Revenue Next 2Y18.16%
Revenue Next 3Y17.13%
Revenue Next 5Y22.39%
EBIT growth 1Y1494.37%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year79.05%
EBIT Next 3Y41.83%
EBIT Next 5Y31.43%
FCF growth 1Y15.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.32%
OCF growth 3YN/A
OCF growth 5YN/A