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CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock - Currency: USD

33.7  +0.05 (+0.15%)

After market: 33.7 0 (0%)

Fundamental Rating

7

Taking everything into account, CARG scores 7 out of 10 in our fundamental rating. CARG was compared to 70 industry peers in the Interactive Media & Services industry. CARG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CARG has a decent growth rate and is not valued too expensively. These ratings could make CARG a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year CARG was profitable.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

CARG's Return On Assets of 5.66% is fine compared to the rest of the industry. CARG outperforms 75.71% of its industry peers.
CARG's Return On Equity of 9.70% is amongst the best of the industry. CARG outperforms 81.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.90%, CARG belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARG is below the industry average of 12.03%.
The 3 year average ROIC (8.22%) for CARG is below the current ROIC(18.90%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.66%
ROE 9.7%
ROIC 18.9%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.76%
ROE(5y)11.2%
ROIC(3y)8.22%
ROIC(5y)10.28%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

With a decent Profit Margin value of 4.32%, CARG is doing good in the industry, outperforming 65.71% of the companies in the same industry.
CARG's Profit Margin has declined in the last couple of years.
CARG has a better Operating Margin (19.47%) than 84.29% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
CARG's Gross Margin of 85.58% is amongst the best of the industry. CARG outperforms 84.29% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 19.47%
PM (TTM) 4.32%
GM 85.58%
OM growth 3Y4.04%
OM growth 5Y24.69%
PM growth 3YN/A
PM growth 5Y-19.96%
GM growth 3Y6.61%
GM growth 5Y-2.25%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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9

2. Health

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
Compared to 5 years ago, CARG has less shares outstanding
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CARG Yearly Shares OutstandingCARG Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

CARG has an Altman-Z score of 10.20. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
CARG has a better Altman-Z score (10.20) than 87.14% 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 10.2
ROIC/WACC2.03
WACC9.31%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.65 indicates that CARG has no problem at all paying its short term obligations.
The Current ratio of CARG (2.65) is comparable to the rest of the industry.
CARG has a Quick Ratio of 2.64. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG has a Quick ratio of 2.64. This is comparable to the rest of the industry: CARG outperforms 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.64
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 43.85% 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 0.64% in the past year.
CARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.72% yearly.
EPS 1Y (TTM)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%

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 29.13% on average per year.
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 6.87% on average per year.
EPS Next Y22.5%
EPS Next 2Y20.11%
EPS Next 3Y19.44%
EPS Next 5Y29.13%
Revenue Next Year5.04%
Revenue Next 2Y6.55%
Revenue Next 3Y6.8%
Revenue Next 5Y6.87%

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.
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.
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 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.02 indicates a rather expensive valuation of CARG.
70.00% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 13.50 indicates a correct valuation of CARG.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 77.14% 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 21.90.
Industry RankSector Rank
PE 18.02
Fwd PE 13.5
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
65.71% of the companies in the same industry are more expensive than CARG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.38
EV/EBITDA 15.79
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CARG may justify a higher PE ratio.
CARG's earnings are expected to grow with 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)0.68
EPS Next 2Y20.11%
EPS Next 3Y19.44%

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0

5. Dividend

5.1 Amount

No dividends for CARG!.
Industry RankSector Rank
Dividend Yield N/A

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CARGURUS INC

NASDAQ:CARG (7/3/2025, 7:07:04 PM)

After market: 33.7 0 (0%)

33.7

+0.05 (+0.15%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners103.84%
Inst Owner Change-64.93%
Ins Owners2.35%
Ins Owner Change-0.82%
Market Cap3.33B
Analysts81.05
Price Target39.97 (18.61%)
Short Float %4.26%
Short Ratio3.83
Dividend
Industry RankSector 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)4.23%
Min EPS beat(2)3.76%
Max EPS beat(2)4.7%
EPS beat(4)4
Avg EPS beat(4)8.16%
Min EPS beat(4)3.76%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)12.08%
EPS beat(12)11
Avg EPS beat(12)20.59%
EPS beat(16)15
Avg EPS beat(16)22.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-2.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)1.76%
PT rev (1m)4.83%
PT rev (3m)1.37%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)17.36%
EPS NY rev (1m)0.64%
EPS NY rev (3m)9.49%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 18.02
Fwd PE 13.5
P/S 3.69
P/FCF 16.38
P/OCF 12.29
P/B 8.29
P/tB 9.68
EV/EBITDA 15.79
EPS(TTM)1.87
EY5.55%
EPS(NY)2.5
Fwd EY7.41%
FCF(TTM)2.06
FCFY6.1%
OCF(TTM)2.74
OCFY8.14%
SpS9.14
BVpS4.07
TBVpS3.48
PEG (NY)0.8
PEG (5Y)0.68
Profitability
Industry RankSector Rank
ROA 5.66%
ROE 9.7%
ROCE 29.63%
ROIC 18.9%
ROICexc 26.65%
ROICexgc 30.91%
OM 19.47%
PM (TTM) 4.32%
GM 85.58%
FCFM 22.5%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.76%
ROE(5y)11.2%
ROIC(3y)8.22%
ROIC(5y)10.28%
ROICexc(3y)15.65%
ROICexc(5y)22.27%
ROICexgc(3y)26.83%
ROICexgc(5y)37.54%
ROCE(3y)12.88%
ROCE(5y)16.12%
ROICexcg growth 3Y-17.41%
ROICexcg growth 5Y9.83%
ROICexc growth 3Y2.8%
ROICexc growth 5Y9.66%
OM growth 3Y4.04%
OM growth 5Y24.69%
PM growth 3YN/A
PM growth 5Y-19.96%
GM growth 3Y6.61%
GM growth 5Y-2.25%
F-Score8
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 280.97%
Cap/Sales 7.48%
Interest Coverage 266.67
Cash Conversion 135.45%
Profit Quality 521.46%
Current Ratio 2.65
Quick Ratio 2.64
Altman-Z 10.2
F-Score8
WACC9.31%
ROIC/WACC2.03
Cap/Depr(3y)166.54%
Cap/Depr(5y)120.06%
Cap/Sales(3y)5.35%
Cap/Sales(5y)3.77%
Profit Quality(3y)386.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
EPS Next Y22.5%
EPS Next 2Y20.11%
EPS Next 3Y19.44%
EPS Next 5Y29.13%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%
Revenue Next Year5.04%
Revenue Next 2Y6.55%
Revenue Next 3Y6.8%
Revenue Next 5Y6.87%
EBIT growth 1Y295.2%
EBIT growth 3Y1.92%
EBIT growth 5Y35.56%
EBIT Next Year30.68%
EBIT Next 3Y18.43%
EBIT Next 5Y18.78%
FCF growth 1Y-3.06%
FCF growth 3Y24.02%
FCF growth 5Y23.56%
OCF growth 1Y18.19%
OCF growth 3Y37.4%
OCF growth 5Y29.47%