CAVA Group Inc. Common Stock (CAVA)

FairStock Score: 23/100 — RISKY

Key Financials

Strengths

• Altman Z-Score of 11.8 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 20.9% demonstrates strong top-line momentum
• Established organization with 13,480 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($9) with negative 965% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

CAVA Group Inc. Common Stock is a mid-cap consumer cyclical company valued at $11.2 billion. The business generates $1.2 billion in annual revenue with a 0.4% net margin. From a quality standpoint, CAVA shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 11.8 confirms fortress-level solvency. On valuation, the stock is commanding a steep 172.4x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 20.9% and profit growth of -93.7%. Our composite FairStock Score of 23/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

CAVA's 21% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 172x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer