CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
438.47 USD
-3.1 (-0.7%)
438.03 USD
-0.44 (-0.1%)
We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 123 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA is valued quite expensive, but it does show an excellent growth. With these ratings, CVNA could be worth investigating further for growth investing!.
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's Return On Assets of 6.38% is fine compared to the rest of the industry. CVNA outperforms 75.61% of its industry peers.
CVNA's Return On Equity of 27.60% is amongst the best of the industry. CVNA outperforms 86.99% of its industry peers.
CVNA has a Return On Invested Capital of 17.57%. This is amongst the best in the industry. CVNA outperforms 86.18% 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 Profit Margin of 3.44%. This is in the better half of the industry: CVNA outperforms 71.54% of its industry peers.
CVNA has a better Operating Margin (9.40%) than 81.30% of its industry peers.
CVNA has a Gross Margin of 21.37%. This is amonst the worse of the industry: CVNA underperforms 80.49% 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.
The number of shares outstanding for CVNA has been increased compared to 1 year ago.
CVNA has more shares outstanding than it did 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 10.44 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a better Altman-Z score (10.44) than 97.56% of its industry peers.
The Debt to FCF ratio of CVNA is 9.53, which is on the high side as it means it would take CVNA, 9.53 years of fcf income to pay off all of its debts.
CVNA has a Debt to FCF ratio (9.53) which is in line with its industry peers.
A Debt/Equity ratio of 2.14 is on the high side and indicates that CVNA has dependencies on debt 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 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 10.44 |
ROIC/WACC1.86
WACC9.42%
2.3 Liquidity
A Current Ratio of 4.05 indicates that CVNA has no problem at all paying its short term obligations.
CVNA's Current ratio of 4.05 is amongst the best of the industry. CVNA outperforms 93.50% 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 91.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43700.00% over the past year.
Looking at the last year, CVNA shows a very strong growth in Revenue. The Revenue has grown by 45.55%.
CVNA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.25% yearly.
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 48.65% yearly.
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 28.13% on average per year.
EPS Next Y233.13%
EPS Next 2Y114.01%
EPS Next 3Y84.98%
EPS Next 5Y48.65%
Revenue Next Year48.02%
Revenue Next 2Y37.25%
Revenue Next 3Y33.03%
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
A Price/Earnings ratio of 100.11 indicates a quite expensive valuation of 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 (26.92), we can say CVNA is valued expensively.
CVNA is valuated quite expensively with a Price/Forward Earnings ratio of 60.98.
The rest of the industry has a similar Price/Forward Earnings ratio as CVNA.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, CVNA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.11 | ||
| Fwd PE | 60.98 |
4.2 Price Multiples
68.29% 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 | 174.7 | ||
| EV/EBITDA | 49.26 |
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 84.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y114.01%
EPS Next 3Y84.98%
5. Dividend
5.1 Amount
No dividends for CVNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
438.47
-3.1 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change19.2%
Ins Owners2.2%
Ins Owner Change-3.07%
Market Cap95.38B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts80.65
Price Target448.25 (2.23%)
Short Float %9.96%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.52%
PT rev (3m)8.27%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)7.54%
EPS NY rev (1m)4.46%
EPS NY rev (3m)3.8%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)9%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)5.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.11 | ||
| Fwd PE | 60.98 | ||
| P/S | 5.22 | ||
| P/FCF | 174.7 | ||
| P/OCF | 143.22 | ||
| P/B | 41.85 | ||
| P/tB | 42.56 | ||
| EV/EBITDA | 49.26 |
EPS(TTM)4.38
EY1%
EPS(NY)7.19
Fwd EY1.64%
FCF(TTM)2.51
FCFY0.57%
OCF(TTM)3.06
OCFY0.7%
SpS83.97
BVpS10.48
TBVpS10.3
PEG (NY)0.43
PEG (5Y)N/A
Graham Number32.13
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 | 10.44 |
F-Score8
WACC9.42%
ROIC/WACC1.86
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 Y233.13%
EPS Next 2Y114.01%
EPS Next 3Y84.98%
EPS Next 5Y48.65%
Revenue 1Y (TTM)45.55%
Revenue growth 3Y2.19%
Revenue growth 5Y28.25%
Sales Q2Q%54.5%
Revenue Next Year48.02%
Revenue Next 2Y37.25%
Revenue Next 3Y33.03%
Revenue Next 5Y28.13%
EBIT growth 1Y147.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.59%
EBIT Next 3Y56.75%
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%.