CARGURUS INC (CARG) Stock Fundamental Analysis
NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock
Taking everything into account, CARG scores 6 out of 10 in our fundamental rating. CARG was compared to 72 industry peers in the Interactive Media & Services industry. CARG has an excellent financial health rating, but there are some minor concerns on its profitability. CARG is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make CARG suitable for growth investing!
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.
1.2 Ratios
The Return On Assets of CARG (-6.25%) is comparable to the rest of the industry.
CARG has a Return On Equity (-10.06%) which is comparable to the rest of the industry.
CARG has a Return On Invested Capital of 9.72%. This is amongst the best in the industry. CARG outperforms 83.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CARG is below the industry average of 12.59%.
The last Return On Invested Capital (9.72%) for CARG is above the 3 year average (9.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.25% | ||
| ROE | -10.06% | ||
| ROIC | 9.72% |
ROA(3y)8.09%
ROA(5y)10.08%
ROE(3y)10.46%
ROE(5y)13.71%
ROIC(3y)9.65%
ROIC(5y)11.03%
1.3 Margins
CARG's Profit Margin has declined in the last couple of years.
CARG has a better Operating Margin (9.24%) than 74.63% of its industry peers.
CARG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 80.74%, CARG is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | N/A | ||
| GM | 80.74% |
OM growth 3Y-41.4%
OM growth 5Y-6.92%
PM growth 3Y-37.7%
PM growth 5Y-25.02%
GM growth 3Y-8.24%
GM growth 5Y-5.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CARG is still creating some value.
Compared to 1 year ago, CARG has less shares outstanding
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
An Altman-Z score of 10.40 indicates that CARG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.40, CARG belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
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 | 10.4 |
ROIC/WACC1.05
WACC9.25%
2.3 Liquidity
CARG has a Current Ratio of 2.95. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.95, CARG is doing good in the industry, outperforming 70.15% of the companies in the same industry.
CARG has a Quick Ratio of 2.95. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG's Quick ratio of 2.95 is fine compared to the rest of the industry. CARG outperforms 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.84%, which is quite impressive.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
The Revenue has decreased by -9.08% in the past year.
Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 15.02% on average per year.
EPS 1Y (TTM)37.84%
EPS 3Y5.04%
EPS 5Y31.95%
EPS Q2Q%32.35%
Revenue 1Y (TTM)-9.08%
Revenue growth 3Y18.35%
Revenue growth 5Y15.02%
Sales Q2Q%5.44%
3.2 Future
Based on estimates for the next years, CARG will show a very strong growth in Earnings Per Share. The EPS will grow by 33.78% on average per year.
The Revenue is expected to grow by 16.05% on average over the next years. This is quite good.
EPS Next Y40.77%
EPS Next 2Y25.46%
EPS Next 3Y23.68%
EPS Next 5Y33.78%
Revenue Next Year-1.44%
Revenue Next 2Y3.83%
Revenue Next 3Y5.33%
Revenue Next 5Y16.05%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.16, which means the current valuation is very expensive for CARG.
Compared to the rest of the industry, the Price/Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 68.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CARG is around the same levels.
Based on the Price/Forward Earnings ratio of 19.72, the valuation of CARG can be described as rather expensive.
67.16% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
CARG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
CARG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CARG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.91 | ||
| EV/EBITDA | 32.44 |
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's earnings are expected to grow with 23.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)0.79
EPS Next 2Y25.46%
EPS Next 3Y23.68%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARGURUS INC
NASDAQ:CARG (1/21/2025, 8:00:00 PM)
After market: 37.6901 -0.8 (-2.08%)38.49
+0.7 (+1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.26%
Inst Owner Change-0.29%
Ins Owners2.1%
Ins Owner Change1.08%
Market Cap3.99B
Analysts80
Price Target39.03 (1.4%)
Short Float %6.67%
Short Ratio8.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)12.09%
Min EPS beat(2)3.99%
Max EPS beat(2)20.18%
EPS beat(4)4
Avg EPS beat(4)9.83%
Min EPS beat(4)2.05%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)32.13%
EPS beat(12)11
Avg EPS beat(12)23.38%
EPS beat(16)15
Avg EPS beat(16)26.19%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.78%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)1.08%
Revenue beat(12)5
Avg Revenue beat(12)1.82%
Revenue beat(16)8
Avg Revenue beat(16)2.49%
PT rev (1m)0%
PT rev (3m)33.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)36.28%
EPS NY rev (1m)0%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 19.72 | ||
| P/S | 4.49 | ||
| P/FCF | 48.91 | ||
| P/OCF | 21.9 | ||
| P/B | 8.26 | ||
| P/tB | 9.42 | ||
| EV/EBITDA | 32.44 |
EPS(TTM)1.53
EY3.98%
EPS(NY)1.95
Fwd EY5.07%
FCF(TTM)0.79
FCFY2.04%
OCF(TTM)1.76
OCFY4.57%
SpS8.57
BVpS4.66
TBVpS4.09
PEG (NY)0.62
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.25% | ||
| ROE | -10.06% | ||
| ROCE | 12.3% | ||
| ROIC | 9.72% | ||
| ROICexc | 15.42% | ||
| ROICexgc | 17.96% | ||
| OM | 9.24% | ||
| PM (TTM) | N/A | ||
| GM | 80.74% | ||
| FCFM | 9.18% |
ROA(3y)8.09%
ROA(5y)10.08%
ROE(3y)10.46%
ROE(5y)13.71%
ROIC(3y)9.65%
ROIC(5y)11.03%
ROICexc(3y)18.6%
ROICexc(5y)25.44%
ROICexgc(3y)41.88%
ROICexgc(5y)43.97%
ROCE(3y)12.22%
ROCE(5y)13.96%
ROICexcg growth 3Y-51.61%
ROICexcg growth 5Y-26.59%
ROICexc growth 3Y-53.78%
ROICexc growth 5Y-33.03%
OM growth 3Y-41.4%
OM growth 5Y-6.92%
PM growth 3Y-37.7%
PM growth 5Y-25.02%
GM growth 3Y-8.24%
GM growth 5Y-5.5%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 323.71% | ||
| Cap/Sales | 11.32% | ||
| Interest Coverage | 105.69 | ||
| Cash Conversion | 161.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z | 10.4 |
F-Score6
WACC9.25%
ROIC/WACC1.05
Cap/Depr(3y)52.51%
Cap/Depr(5y)81.19%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.84%
EPS 3Y5.04%
EPS 5Y31.95%
EPS Q2Q%32.35%
EPS Next Y40.77%
EPS Next 2Y25.46%
EPS Next 3Y23.68%
EPS Next 5Y33.78%
Revenue 1Y (TTM)-9.08%
Revenue growth 3Y18.35%
Revenue growth 5Y15.02%
Sales Q2Q%5.44%
Revenue Next Year-1.44%
Revenue Next 2Y3.83%
Revenue Next 3Y5.33%
Revenue Next 5Y16.05%
EBIT growth 1Y-2.82%
EBIT growth 3Y-30.64%
EBIT growth 5Y7.06%
EBIT Next Year46.24%
EBIT Next 3Y23.27%
EBIT Next 5Y22.12%
FCF growth 1Y-23.57%
FCF growth 3Y-17.65%
FCF growth 5Y13.52%
OCF growth 1Y47%
OCF growth 3Y-7.37%
OCF growth 5Y19.22%