CARGURUS INC (CARG) Fundamental Analysis & Valuation
NASDAQ:CARG • US1417881091
Current stock price
34.83 USD
+0.48 (+1.4%)
At close:
34.83 USD
0 (0%)
After Hours:
This CARG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CARG Profitability Analysis
1.1 Basic Checks
- CARG had positive earnings in the past year.
- In the past year CARG had a positive cash flow from operations.
- Of the past 5 years CARG 4 years were profitable.
- In the past 5 years CARG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CARG (23.55%) is better than 95.65% of its industry peers.
- CARG has a better Return On Equity (41.66%) than 94.20% of its industry peers.
- The Return On Invested Capital of CARG (33.66%) is better than 98.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CARG is significantly above the industry average of 11.10%.
- The last Return On Invested Capital (33.66%) for CARG is above the 3 year average (18.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.55% | ||
| ROE | 41.66% | ||
| ROIC | 33.66% |
ROA(3y)9.83%
ROA(5y)10.07%
ROE(3y)16.86%
ROE(5y)15.38%
ROIC(3y)18.54%
ROIC(5y)16.15%
1.3 Margins
- The Profit Margin of CARG (17.19%) is better than 82.61% of its industry peers.
- CARG's Profit Margin has improved in the last couple of years.
- The Operating Margin of CARG (27.01%) is better than 89.86% of its industry peers.
- In the last couple of years the Operating Margin of CARG has grown nicely.
- CARG's Gross Margin of 92.78% is amongst the best of the industry. CARG outperforms 94.20% of its industry peers.
- CARG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.01% | ||
| PM (TTM) | 17.19% | ||
| GM | 92.78% |
OM growth 3Y60.3%
OM growth 5Y8.78%
PM growth 3Y13.65%
PM growth 5Y4.08%
GM growth 3Y32.67%
GM growth 5Y0.12%
2. CARG Health Analysis
2.1 Basic Checks
- CARG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- CARG has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CARG has less shares outstanding
- There is no outstanding debt for CARG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- CARG has an Altman-Z score of 10.51. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
- CARG has a Altman-Z score of 10.51. This is amongst the best in the industry. CARG outperforms 92.75% of its industry peers.
- CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.51 |
ROIC/WACC3.73
WACC9.03%
2.3 Liquidity
- CARG has a Current Ratio of 2.81. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.81, CARG is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- A Quick Ratio of 2.81 indicates that CARG has no problem at all paying its short term obligations.
- CARG's Quick ratio of 2.81 is fine compared to the rest of the industry. CARG outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. CARG Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 29.48% over the past year.
- CARG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.92% yearly.
- CARG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
- CARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.46% yearly.
EPS 1Y (TTM)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%
3.2 Future
- The Earnings Per Share is expected to grow by 18.70% on average over the next years. This is quite good.
- CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.66% yearly.
EPS Next Y15.11%
EPS Next 2Y17.2%
EPS Next 3Y17.62%
EPS Next 5Y18.7%
Revenue Next Year7.88%
Revenue Next 2Y8.35%
Revenue Next 3Y7.73%
Revenue Next 5Y7.66%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. CARG Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.55, the valuation of CARG can be described as correct.
- Based on the Price/Earnings ratio, CARG is valued a bit cheaper than 62.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CARG to the average of the S&P500 Index (25.54), we can say CARG is valued slightly cheaper.
- A Price/Forward Earnings ratio of 13.51 indicates a correct valuation of CARG.
- 62.32% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CARG to the average of the S&P500 Index (22.70), we can say CARG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 69.57% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.47 | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of CARG may justify a higher PE ratio.
- CARG's earnings are expected to grow with 17.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)0.98
EPS Next 2Y17.2%
EPS Next 3Y17.62%
5. CARG Dividend Analysis
5.1 Amount
- No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CARG Fundamentals: All Metrics, Ratios and Statistics
34.83
+0.48 (+1.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-06 2026-05-06
Inst Owners102.6%
Inst Owner Change-2.76%
Ins Owners1.97%
Ins Owner Change1.39%
Market Cap3.32B
Revenue(TTM)906.98M
Net Income(TTM)155.90M
Analysts79
Price Target37.23 (6.89%)
Short Float %7.95%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.12%
Min EPS beat(2)-2.34%
Max EPS beat(2)2.1%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-2.34%
Max EPS beat(4)3.76%
EPS beat(8)7
Avg EPS beat(8)6.06%
EPS beat(12)11
Avg EPS beat(12)12.56%
EPS beat(16)14
Avg EPS beat(16)15.73%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.04%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)-10.7%
PT rev (3m)-9.41%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.51 | ||
| P/S | 3.66 | ||
| P/FCF | 12.47 | ||
| P/OCF | 11.23 | ||
| P/B | 8.86 | ||
| P/tB | 9.68 | ||
| EV/EBITDA | 11.27 |
EPS(TTM)2.24
EY6.43%
EPS(NY)2.58
Fwd EY7.4%
FCF(TTM)2.79
FCFY8.02%
OCF(TTM)3.1
OCFY8.91%
SpS9.53
BVpS3.93
TBVpS3.6
PEG (NY)1.03
PEG (5Y)0.98
Graham Number14.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.55% | ||
| ROE | 41.66% | ||
| ROCE | 43.63% | ||
| ROIC | 33.66% | ||
| ROICexc | 50.95% | ||
| ROICexgc | 55.7% | ||
| OM | 27.01% | ||
| PM (TTM) | 17.19% | ||
| GM | 92.78% | ||
| FCFM | 29.32% |
ROA(3y)9.83%
ROA(5y)10.07%
ROE(3y)16.86%
ROE(5y)15.38%
ROIC(3y)18.54%
ROIC(5y)16.15%
ROICexc(3y)29.44%
ROICexc(5y)27.54%
ROICexgc(3y)33.71%
ROICexgc(5y)43.14%
ROCE(3y)24.04%
ROCE(5y)20.94%
ROICexgc growth 3Y-0.43%
ROICexgc growth 5Y-4.87%
ROICexc growth 3Y29.76%
ROICexc growth 5Y-0.35%
OM growth 3Y60.3%
OM growth 5Y8.78%
PM growth 3Y13.65%
PM growth 5Y4.08%
GM growth 3Y32.67%
GM growth 5Y0.12%
F-Score8
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 103.42% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 415.16 | ||
| Cash Conversion | 108.05% | ||
| Profit Quality | 170.6% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 10.51 |
F-Score8
WACC9.03%
ROIC/WACC3.73
Cap/Depr(3y)186.3%
Cap/Depr(5y)126.28%
Cap/Sales(3y)6.5%
Cap/Sales(5y)4.4%
Profit Quality(3y)402.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
EPS Next Y15.11%
EPS Next 2Y17.2%
EPS Next 3Y17.62%
EPS Next 5Y18.7%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%
Revenue Next Year7.88%
Revenue Next 2Y8.35%
Revenue Next 3Y7.73%
Revenue Next 5Y7.66%
EBIT growth 1Y56.53%
EBIT growth 3Y31.18%
EBIT growth 5Y20.16%
EBIT Next Year25.32%
EBIT Next 3Y15%
EBIT Next 5Y12.49%
FCF growth 1Y64.64%
FCF growth 3Y3.66%
FCF growth 5Y12.26%
OCF growth 1Y15.57%
OCF growth 3Y4.86%
OCF growth 5Y13.51%
CARGURUS INC / CARG Fundamental Analysis FAQ
What is the ChartMill fundamental rating of CARGURUS INC (CARG) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CARG.
What is the valuation status for CARG stock?
ChartMill assigns a valuation rating of 6 / 10 to CARGURUS INC (CARG). This can be considered as Fairly Valued.
How profitable is CARGURUS INC (CARG) stock?
CARGURUS INC (CARG) has a profitability rating of 9 / 10.
What is the valuation of CARGURUS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 15.55 and the Price/Book (PB) ratio is 8.86.