CARGURUS INC (CARG)
US1417881091 - Common Stock
CARG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 industry peers in the Interactive Media & Services industry. While CARG has a great health rating, its profitability is only average at the moment. CARG has a correct valuation and a medium growth rate.
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.
CARG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CARG had a positive operating cash flow.
1.2 Ratios
CARG has a Return On Assets (-6.25%) which is in line with its industry peers.
CARG has a Return On Equity of -10.06%. This is comparable to the rest of the industry: CARG outperforms 49.30% of its industry peers.
The Return On Invested Capital of CARG (9.72%) is better than 85.92% of its industry peers.
CARG had an Average Return On Invested Capital over the past 3 years of 9.65%. This is in line with the industry average of 11.21%.
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.
Looking at the Operating Margin, with a value of 9.24%, CARG is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
CARG's Operating Margin has declined in the last couple of years.
CARG has a Gross Margin of 80.74%. This is in the better half of the industry: CARG outperforms 73.24% of its industry peers.
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.
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
An Altman-Z score of 8.71 indicates that CARG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.71, CARG belongs to the top of the industry, outperforming 90.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.71 |
ROIC/WACC1.07
WACC9.05%
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.
Looking at the Current ratio, with a value of 2.95, CARG is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
A Quick Ratio of 2.95 indicates that CARG has no problem at all paying its short term obligations.
The Quick ratio of CARG (2.95) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.71% over the past year.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
Looking at the last year, CARG shows a decrease in Revenue. The Revenue has decreased by -9.08% in the last year.
The Revenue has been growing by 15.02% on average over the past years. This is quite good.
EPS 1Y (TTM)11.71%
EPS 3Y5.04%
EPS 5Y31.95%
EPS Q2Q%7.13%
Revenue 1Y (TTM)-9.08%
Revenue growth 3Y18.35%
Revenue growth 5Y15.02%
Sales Q2Q%5.44%
3.2 Future
CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.44% yearly.
CARG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.19% yearly.
EPS Next Y34.79%
EPS Next 2Y24.46%
EPS Next 3Y22.29%
EPS Next 5Y31.44%
Revenue Next Year-2.74%
Revenue Next 2Y2.81%
Revenue Next 3Y4.55%
Revenue Next 5Y15.19%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.81 indicates a quite expensive 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 63.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. CARG is around the same levels.
CARG is valuated rather expensively with a Price/Forward Earnings ratio of 18.60.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.81 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
61.97% of the companies in the same industry are more expensive than CARG, based on the Enterprise Value to EBITDA ratio.
CARG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CARG is cheaper than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.5 | ||
| EV/EBITDA | 25.13 |
4.3 Compensation for Growth
CARG's 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 22.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)0.9
EPS Next 2Y24.46%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARGURUS INC
NASDAQ:CARG (11/21/2024, 8:17:14 PM)
After market: 35.73 0 (0%)35.73
+0.57 (+1.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.81 | ||
| Fwd PE | 18.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.83
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.25% | ||
| ROE | -10.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.24% | ||
| PM (TTM) | N/A | ||
| GM | 80.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.71%
EPS 3Y5.04%
EPS 5Y
EPS Q2Q%
EPS Next Y34.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.08%
Revenue growth 3Y18.35%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y