CARVANA CO (CVNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVNA - US1468691027 - Common Stock
441.57 USD
+4.22 (+0.96%)
441.27 USD
-0.3 (-0.07%)
CVNA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 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. These ratings would make CVNA suitable 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.
The reported net income has been mixed in the past 5 years: CVNA reported negative net income in multiple 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.
With an excellent Return On Equity value of 27.60%, CVNA belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
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
The Profit Margin of CVNA (3.44%) is better than 71.54% of its industry peers.
CVNA has a Operating Margin of 9.40%. This is amongst the best in the industry. CVNA outperforms 81.30% of its industry peers.
The Gross Margin of CVNA (21.37%) is worse than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CVNA is creating value.
Compared to 1 year ago, CVNA has more shares outstanding
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
CVNA has an Altman-Z score of 10.49. This indicates that CVNA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.49, CVNA belongs to the top of the industry, outperforming 97.56% 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.
With a Debt to FCF ratio value of 9.53, CVNA perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
CVNA has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.14, CVNA is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 10.49 |
ROIC/WACC1.87
WACC9.4%
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.
The Current ratio of CVNA (4.05) is better than 94.31% 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 91.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.55 |
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.
The Revenue has grown by 45.55% in the past year. This is a very strong growth!
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.
CVNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.13% yearly.
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
Based on the Price/Earnings ratio of 100.82, the valuation of CVNA can be described as expensive.
CVNA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. CVNA is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 61.41, which means the current valuation is very expensive for CVNA.
CVNA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. CVNA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.82 | ||
| Fwd PE | 61.41 |
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 | 175.93 | ||
| EV/EBITDA | 49.6 |
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 84.98% in the coming years.
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% |
441.57
+4.22 (+0.96%)
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-3.13%
Market Cap96.06B
Revenue(TTM)18.27B
Net Income(TTM)629.00M
Analysts80.65
Price Target448.25 (1.51%)
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)5.28%
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)6.74%
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 | 100.82 | ||
| Fwd PE | 61.41 | ||
| P/S | 5.26 | ||
| P/FCF | 175.93 | ||
| P/OCF | 144.23 | ||
| P/B | 42.15 | ||
| P/tB | 42.86 | ||
| EV/EBITDA | 49.6 |
EPS(TTM)4.38
EY0.99%
EPS(NY)7.19
Fwd EY1.63%
FCF(TTM)2.51
FCFY0.57%
OCF(TTM)3.06
OCFY0.69%
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 | 10.49 |
F-Score8
WACC9.4%
ROIC/WACC1.87
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 Year130.29%
EBIT Next 3Y55.7%
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%.