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 only an average score on both its financial health and profitability. CVNA is valued quite expensively, but it does show have an excellent growth rating. This makes CVNA very considerable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

The Return On Assets of CVNA (6.38%) is better than 75.41% of its industry peers.
CVNA's Return On Equity of 27.60% is amongst the best of the industry. CVNA outperforms 86.89% of its industry peers.
CVNA's Return On Invested Capital of 17.57% is amongst the best of 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

With a decent Profit Margin value of 3.44%, CVNA is doing good in the industry, outperforming 71.31% of the companies in the same industry.
CVNA has a better Operating Margin (9.40%) than 81.15% of its industry peers.
CVNA has a worse Gross Margin (21.37%) than 78.69% of its industry peers.
In the last couple of years the Gross Margin of CVNA has grown nicely.

		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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CVNA is creating value.
CVNA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVNA has more shares outstanding
CVNA has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 9.79 indicates that CVNA is not in any danger for bankruptcy at the moment.
CVNA has a better Altman-Z score (9.79) than 97.54% of its industry peers.
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.
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 69.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.14
Debt/FCF	9.53
Altman-Z	9.79

ROIC/WACC1.85

WACC9.48%

2.3 Liquidity

A Current Ratio of 4.05 indicates that CVNA has no problem at all paying 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 better Quick ratio (2.55) than 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%.
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

CVNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.29% yearly.
Based on estimates for the next years, CVNA will show a very strong growth in Revenue. The Revenue will grow by 27.94% on average per year.

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

The Price/Earnings ratio is 91.58, which means the current valuation is very expensive for CVNA.
CVNA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CVNA to the average of the S&P500 Index (28.32), we can say CVNA is valued expensively.
With a Price/Forward Earnings ratio of 56.12, CVNA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as CVNA.
The average S&P500 Price/Forward Earnings ratio is at 25.57. CVNA is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	91.58
Fwd PE	56.12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVNA is valued a bit more expensive than 67.21% of the companies in the same industry.
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	159.81
EV/EBITDA	45.19

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 86.22% in the coming years.