CAVACAVA
US • —
$78.48
P/E
145.68
PEG
—
FCF Yield
—
Rev Growth YoY
+22.4% YoY
Gross Margin
31.7%
Health Score
6/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
CAVA Group operates as a fast-casual restaurant chain in the Mediterranean food segment, generating revenue through company-operated restaurant sales and, to a lesser extent, franchise operations. The company competes in the highly fragmented US fast-casual dining market, positioning itself as a differentiating concept with a focus on healthier, customizable meals. With a market capitalisation that places it in the mid-cap tier, CAVA is a relatively young public company with limited financial history. A defining characteristic is its strong same-store sales growth trajectory, which has captured investor attention despite the company not yet demonstrating consistent profitability at scale.
Financial Health
Gross margin stands at 31.7%, while the trailing twelve-month net margin is a thin 5.4%; no prior-year gross margin data is available to assess direction. The balance sheet is exceptionally conservative, with a debt-to-equity ratio of 0.0x and a strong current ratio of 2.65x, indicating ample short-term liquidity and no financial leverage...
Risk Assessment
- VALUATION — P/E of 145.68x far exceeds the sector average of 22x, leaving little room for error in growth expectations.
- EARNINGS QUALITY — Earnings declined 51.0% year-over-year, eroding profitability despite strong revenue growth and creating a reliance on future margin recovery.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — Both the FMP DCF and Python DCF estimates are not calculable due to negative or unavailable free cash flow, leaving a gap in fundamental valuation support....
Gross margin stands at 31.7%, while the trailing twelve-month net margin is a thin 5.4%; no prior-year gross margin data is available to assess direction. The balance sheet is exceptionally conservative, with a debt-to-equity ratio of 0.0x and a strong current ratio of 2.65x, indicating ample short-term liquidity and no financial leverage. Free cash flow data is not available in the payload, preventing a direct assessment of cash generation versus consumption. Overall, the financial health is characterised by a pristine balance sheet with no debt, but margins are narrow, and the inability to evaluate free cash flow leaves a gap in understanding the company's self-funding capacity and reinvestment potential.
- VALUATION — P/E of 145.68x far exceeds the sector average of 22x, leaving little room for error in growth expectations. - EARNINGS QUALITY — Earnings declined 51.0% year-over-year, eroding profitability despite strong revenue growth and creating a reliance on future margin recovery. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — Both the FMP DCF and Python DCF estimates are not calculable due to negative or unavailable free cash flow, leaving a gap in fundamental valuation support.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives