CARGURUS INC (CARG) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CARG • US1417881091

28.61 USD
+0.17 (+0.6%)
At close: Feb 6, 2026
28.61 USD
0 (0%)
After Hours: 2/6/2026, 8:21:16 PM
Fundamental Rating

7

Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG against 69 industry peers in the Interactive Media & Services industry. CARG gets an excellent profitability rating and is at the same time showing great financial health properties. CARG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CARG suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CARG was profitable.
  • CARG had a positive operating cash flow in the past year.
  • 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 0 50M 100M 150M 200M 250M

1.2 Ratios

  • CARG's Return On Assets of 23.01% is amongst the best of the industry. CARG outperforms 95.65% of its industry peers.
  • CARG has a better Return On Equity (40.48%) than 98.55% of its industry peers.
  • The Return On Invested Capital of CARG (23.46%) is better than 92.75% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CARG is significantly below the industry average of 13.43%.
  • The last Return On Invested Capital (23.46%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROIC 23.46%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)8.25%
ROIC(5y)10.3%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

  • With an excellent Profit Margin value of 16.41%, CARG belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CARG has declined.
  • With an excellent Operating Margin value of 22.47%, CARG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • CARG's Operating Margin has improved in the last couple of years.
  • CARG has a Gross Margin of 88.15%. This is amongst the best in the industry. CARG outperforms 88.41% of its industry peers.
  • CARG's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
OM growth 3Y4.23%
OM growth 5Y24.82%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.61%
GM growth 5Y-2.25%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CARG is creating value.
  • Compared to 1 year ago, CARG has less shares outstanding
  • CARG has less shares outstanding than it did 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 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 200M 400M 600M 800M

2.2 Solvency

  • CARG has an Altman-Z score of 9.25. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 9.25, CARG belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
  • 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.25
ROIC/WACC2.65
WACC8.86%
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 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.87, CARG is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
  • A Quick Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
  • The Quick ratio of CARG (2.87) is better than 75.36% of its industry peers.
Industry RankSector Rank
Current Ratio 2.87
Quick Ratio 2.87
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 100M 200M 300M 400M 500M

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.18% over the past year.
  • The Earnings Per Share has been growing by 26.69% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 4.21% in the past year.
  • Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 8.72% on average per year.
EPS 1Y (TTM)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%

3.2 Future

  • CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
  • Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y30.89%
EPS Next 2Y22.71%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%

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

8

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.25, which indicates a correct valuation of CARG.
  • 68.12% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.92. CARG is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 10.98, the valuation of CARG can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 65.22% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of CARG to the average of the S&P500 Index (27.78), we can say CARG is valued rather cheaply.
Industry RankSector Rank
PE 13.25
Fwd PE 10.98
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

  • Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than 66.67% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 76.81% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.86
EV/EBITDA 10.75
CARG Per share dataCARG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of CARG may justify a higher PE ratio.
  • CARG's earnings are expected to grow with 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.5
EPS Next 2Y22.71%
EPS Next 3Y21.74%

0

5. Dividend

5.1 Amount

  • No dividends for CARG!.
Industry RankSector Rank
Dividend Yield 0%

CARGURUS INC

NASDAQ:CARG (2/6/2026, 8:21:16 PM)

After market: 28.61 0 (0%)

28.61

+0.17 (+0.6%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners107.52%
Inst Owner Change-0.83%
Ins Owners2.03%
Ins Owner Change-0.8%
Market Cap2.73B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.69 (45.72%)
Short Float %5.79%
Short Ratio5.53
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)2
Avg EPS beat(2)2.56%
Min EPS beat(2)2.1%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.4%
Min EPS beat(4)2.1%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.61%
EPS beat(12)12
Avg EPS beat(12)22.55%
EPS beat(16)15
Avg EPS beat(16)18.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)0.05%
Revenue beat(16)5
Avg Revenue beat(16)0.86%
PT rev (1m)0%
PT rev (3m)1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector Rank
PE 13.25
Fwd PE 10.98
P/S 2.95
P/FCF 10.86
P/OCF 9.49
P/B 7.27
P/tB 7.95
EV/EBITDA 10.75
EPS(TTM)2.16
EY7.55%
EPS(NY)2.61
Fwd EY9.11%
FCF(TTM)2.64
FCFY9.21%
OCF(TTM)3.02
OCFY10.54%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.43
PEG (5Y)0.5
Graham Number13.83
Profitability
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROCE 36.74%
ROIC 23.46%
ROICexc 34.28%
ROICexgc 37.36%
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
FCFM 27.15%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)8.25%
ROIC(5y)10.3%
ROICexc(3y)15.71%
ROICexc(5y)22.33%
ROICexgc(3y)26.91%
ROICexgc(5y)37.61%
ROCE(3y)12.91%
ROCE(5y)16.13%
ROICexgc growth 3Y-17.23%
ROICexgc growth 5Y9.97%
ROICexc growth 3Y3.02%
ROICexc growth 5Y9.8%
OM growth 3Y4.23%
OM growth 5Y24.82%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.61%
GM growth 5Y-2.25%
F-Score8
Asset Turnover1.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 131.49%
Cap/Sales 3.92%
Interest Coverage 319.79
Cash Conversion 122.09%
Profit Quality 165.52%
Current Ratio 2.87
Quick Ratio 2.87
Altman-Z 9.25
F-Score8
WACC8.86%
ROIC/WACC2.65
Cap/Depr(3y)164.56%
Cap/Depr(5y)118.87%
Cap/Sales(3y)5.35%
Cap/Sales(5y)3.78%
Profit Quality(3y)387.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
EPS Next Y30.89%
EPS Next 2Y22.71%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.7%
EBIT Next 3Y19.22%
EBIT Next 5Y14.24%
FCF growth 1Y31.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y32.49%
OCF growth 3Y37.49%
OCF growth 5Y29.52%

CARGURUS INC / CARG 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 8 / 10 to CARGURUS INC (CARG). This can be considered as Undervalued.


How profitable is CARGURUS INC (CARG) stock?

CARGURUS INC (CARG) has a profitability rating of 8 / 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 13.25 and the Price/Book (PB) ratio is 7.27.