38.37 USD
+0.22 (+0.58%)
CARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. CARG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CARG is not valued too expensively and it also shows a decent growth rate. This makes CARG very considerable for quality investing!
1. Profitability
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.
CARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CARG's Return On Assets of 23.01% is amongst the best of the industry. CARG outperforms 92.86% of its industry peers.
CARG's Return On Equity of 40.48% is amongst the best of the industry. CARG outperforms 98.57% of its industry peers.
With an excellent Return On Invested Capital value of 23.46%, CARG belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARG is significantly below the industry average of 13.70%.
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 Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 16.41%, CARG belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
In the last couple of years the Profit Margin of CARG has declined.
CARG has a better Operating Margin (22.47%) than 87.14% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
CARG's Gross Margin of 88.15% is amongst the best of the industry. CARG outperforms 88.57% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector 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%
2. Health
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.
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.
2.2 Solvency
An Altman-Z score of 11.21 indicates that CARG is not in any danger for bankruptcy at the moment.
CARG has a Altman-Z score of 11.21. This is amongst the best in the industry. CARG outperforms 91.43% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.21 |
ROIC/WACC2.26
WACC10.4%
2.3 Liquidity
A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
The Current ratio of CARG (2.87) is better than 72.86% of its industry peers.
CARG has a Quick Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CARG (2.87) is better than 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
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
The Earnings Per Share is expected to grow by 21.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y30.82%
EPS Next 2Y23.21%
EPS Next 3Y22.11%
EPS Next 5Y21.55%
Revenue Next Year4.3%
Revenue Next 2Y5.21%
Revenue Next 3Y5.96%
Revenue Next 5Y5.88%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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. Valuation
4.1 Price/Earnings Ratio
CARG is valuated rather expensively with a Price/Earnings ratio of 17.76.
65.71% 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 26.77. CARG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.61, which indicates a correct valuation of CARG.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 67.14% of the companies in the same industry.
CARG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than CARG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.68 |
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.
CARG has an outstanding profitability rating, which may justify a higher PE ratio.
CARG's earnings are expected to grow with 22.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.67
EPS Next 2Y23.21%
EPS Next 3Y22.11%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:CARG (12/31/2025, 2:05:38 PM)
38.37
+0.22 (+0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.17%
Inst Owner Change1.27%
Ins Owners2.1%
Ins Owner Change-0.95%
Market Cap3.66B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.35 (7.77%)
Short Float %6.78%
Short Ratio6.03
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)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)0.62%
PT rev (3m)4.69%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)2.84%
EPS NY rev (1m)0.9%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 14.61 | ||
| P/S | 3.95 | ||
| P/FCF | 14.56 | ||
| P/OCF | 12.72 | ||
| P/B | 9.75 | ||
| P/tB | 10.66 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)2.16
EY5.63%
EPS(NY)2.63
Fwd EY6.84%
FCF(TTM)2.64
FCFY6.87%
OCF(TTM)3.02
OCFY7.86%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.58
PEG (5Y)0.67
Graham Number13.83
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 11.21 |
F-Score8
WACC10.4%
ROIC/WACC2.26
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 Y30.82%
EPS Next 2Y23.21%
EPS Next 3Y22.11%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.3%
Revenue Next 2Y5.21%
Revenue Next 3Y5.96%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.72%
EBIT Next 3Y19.57%
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.
Can you provide the valuation status for CARGURUS INC?
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 8 / 10.
Can you provide the PE and PB ratios for CARG stock?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 17.76 and the Price/Book (PB) ratio is 9.75.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.