Avis Budget Group Inc (CAR, Financial), a leading player in the Business Services industry, is currently trading at $227.12 with a market cap of $9.03 billion. The stock has seen a gain of 3.1% today and a slight increase of 0.12% over the past four weeks. In this article, we will delve into the company's GF Score of 91/100, which indicates a high outperformance potential according to GuruFocus' ranking system.
Financial Strength Analysis
The Financial Strength of Avis Budget Group Inc is ranked at 4/10. This score is based on several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. The company's interest coverage is 13.41, indicating a relatively high ability to cover its interest expenses. However, its debt to revenue ratio is 1.67, suggesting a substantial debt burden. The Altman Z-Score of 1.22 further indicates potential financial distress.
Profitability Rank Analysis
The Profitability Rank of Avis Budget Group Inc is 8/10, reflecting a high level of profitability. The company's Operating Margin is 27.68%, and its Piotroski F-Score is 7, indicating a healthy financial situation. The company has also demonstrated consistent profitability over the past 9 years. However, the stock reported an operating loss during one year out of the past five years.
Growth Rank Analysis
Avis Budget Group Inc boasts a perfect Growth Rank of 10/10. This score is based on the company's impressive 5-year revenue growth rate of 15.60% and 3-year revenue growth rate of 30.00%. Additionally, the company's 5-year EBITDA growth rate is 29.30%, indicating robust growth in its business operations.
GF Value Rank Analysis
The company's GF Value Rank is 7/10, suggesting that the stock is reasonably valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank Analysis
The Momentum Rank of Avis Budget Group Inc is 9/10, indicating strong momentum. This rank is determined using the standardized momentum ratio and other momentum indicators, reflecting the stock's strong performance over the past year.
Competitor Analysis
When compared to its main competitors, Avis Budget Group Inc holds a competitive edge. WillScot Mobile Mini Holdings Corp (WSC, Financial) has a GF Score of 73, U-Haul Holding Co (UHAL, Financial) has a GF Score of 95, and Hertz Global Holdings Inc (HTZ, Financial) has a GF Score of 36. Despite the high GF Score of U-Haul Holding Co, Avis Budget Group Inc's overall performance remains commendable.
Conclusion
In conclusion, Avis Budget Group Inc's overall GF Score of 91/100 suggests a high potential for outperformance. The company's strong profitability, robust growth, reasonable valuation, and strong momentum contribute to this high score. However, its financial strength could be improved. Investors should keep a close eye on this stock given its promising prospects.
