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.

9

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.
  • Each year in the past 5 years CARG had a positive operating cash flow.
CARG Yearly Net Income VS EBIT VS OCF VS FCFCARG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • With an excellent Return On Assets value of 23.55%, CARG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 41.66%, CARG belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 33.66%, CARG belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
  • 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 RankSector 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%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 17.19%, CARG belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • CARG's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 27.01%, CARG belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
  • CARG's Operating Margin has improved in the last couple of years.
  • CARG's Gross Margin of 92.78% is amongst the best of the industry. CARG outperforms 94.20% of its industry peers.
  • In the last couple of years the Gross Margin of CARG has remained more or less at the same level.
Industry RankSector 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%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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10

2. CARG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CARG is creating value.
  • Compared to 1 year ago, CARG has less shares outstanding
  • The number of shares outstanding for CARG has been reduced compared to 5 years ago.
  • 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.
CARG Yearly Shares OutstandingCARG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
CARG Yearly Total Debt VS Total AssetsCARG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 10.51 indicates that CARG is not in any danger for 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 10.51
ROIC/WACC3.75
WACC8.98%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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.
  • CARG's Current ratio of 2.81 is fine compared to the rest of the industry. CARG outperforms 73.91% of its industry peers.
  • CARG has a Quick Ratio of 2.81. This indicates that CARG is financially healthy and has no problem in meeting 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 RankSector Rank
Current Ratio 2.81
Quick Ratio 2.81
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CARG Growth Analysis

3.1 Past

  • CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.48%, which is quite impressive.
  • Measured over the past years, CARG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.92% on average per year.
  • The Revenue has been growing slightly by 1.41% in the past year.
  • 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.
  • Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CARG Yearly Revenue VS EstimatesCARG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
CARG Yearly EPS VS EstimatesCARG Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6

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6

4. CARG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.55 indicates a correct valuation of CARG.
  • Compared to the rest of the industry, the Price/Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 62.32% of the companies listed in the same industry.
  • CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.50.
  • The Price/Forward Earnings ratio is 13.51, which indicates a correct valuation of CARG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 62.32% of the companies listed in the same industry.
  • CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
Industry RankSector Rank
PE 15.55
Fwd PE 13.51
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • CARG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARG is cheaper than 69.57% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.47
EV/EBITDA 11.27
CARG Per share dataCARG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • CARG's 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.
  • A more expensive valuation may be justified as CARG's earnings are expected to grow with 17.62% in the coming years.
PEG (NY)1.03
PEG (5Y)0.98
EPS Next 2Y17.2%
EPS Next 3Y17.62%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CARG Dividend Analysis

5.1 Amount

  • CARG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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CARG Fundamentals: All Metrics, Ratios and Statistics

CARGURUS INC

NASDAQ:CARG (3/24/2026, 8:17:29 PM)

After market: 34.83 0 (0%)

34.83

+0.48 (+1.4%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19
Earnings (Next)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 RankSector 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 RankSector 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 RankSector 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 RankSector 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
WACC8.98%
ROIC/WACC3.75
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.