CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
34.06 USD
+0.08 (+0.24%)
34.06 USD
0 (0%)
Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG against 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. This makes CARG very considerable for quality investing!
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.
CARG had positive earnings in 4 of the past 5 years.
CARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CARG has a Return On Assets of 17.87%. This is amongst the best in the industry. CARG outperforms 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 29.80%, CARG belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
CARG has a better Return On Invested Capital (20.08%) than 88.57% 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 13.49%.
The last Return On Invested Capital (20.08%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.87% | ||
| ROE | 29.8% | ||
| ROIC | 20.08% |
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
Looking at the Profit Margin, with a value of 14.12%, CARG is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
CARG's Profit Margin has declined in the last couple of years.
The Operating Margin of CARG (21.51%) is better than 87.14% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
Looking at the Gross Margin, with a value of 86.54%, CARG belongs to the top of the industry, outperforming 88.57% 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 | 21.51% | ||
| PM (TTM) | 14.12% | ||
| GM | 86.54% |
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.
The number of shares outstanding for CARG has been reduced compared to 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 10.28 indicates that CARG is not in any danger for bankruptcy at the moment.
The Altman-Z score of CARG (10.28) is better 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.28 |
ROIC/WACC1.96
WACC10.24%
2.3 Liquidity
CARG has a Current Ratio of 3.18. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CARG (3.18) is better than 74.29% of its industry peers.
A Quick Ratio of 3.17 indicates that CARG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.17, CARG is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.96%, which is quite impressive.
Measured over the past years, CARG shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.69% on average per year.
CARG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
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)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
3.2 Future
CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.39% yearly.
CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y30.12%
EPS Next 2Y21.6%
EPS Next 3Y21.3%
EPS Next 5Y21.39%
Revenue Next Year3.77%
Revenue Next 2Y4.79%
Revenue Next 3Y5.64%
Revenue Next 5Y5.62%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.78, CARG is valued correctly.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than 68.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. CARG is valued slightly cheaper when compared to this.
CARG is valuated correctly with a Price/Forward Earnings ratio of 13.32.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.35. CARG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
68.57% 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 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.82 | ||
| EV/EBITDA | 14.07 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CARG's earnings are expected to grow with 21.30% in the coming years.
PEG (NY)0.56
PEG (5Y)0.63
EPS Next 2Y21.6%
EPS Next 3Y21.3%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.06
+0.08 (+0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change-0.31%
Ins Owners2.17%
Ins Owner Change-1.77%
Market Cap3.38B
Revenue(TTM)919.09M
Net Income(TTM)129.78M
Analysts79
Price Target40.55 (19.05%)
Short Float %5.38%
Short Ratio4.31
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)3.39%
Min EPS beat(2)3.02%
Max EPS beat(2)3.76%
EPS beat(4)4
Avg EPS beat(4)3.87%
Min EPS beat(4)3.02%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)11
Avg EPS beat(12)20.74%
EPS beat(16)15
Avg EPS beat(16)19.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.39%
Revenue beat(4)1
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)0.91%
PT rev (1m)2.64%
PT rev (3m)2.4%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)2.3%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 13.32 | ||
| P/S | 3.68 | ||
| P/FCF | 14.82 | ||
| P/OCF | 12.41 | ||
| P/B | 7.76 | ||
| P/tB | 8.39 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)2.03
EY5.96%
EPS(NY)2.56
Fwd EY7.51%
FCF(TTM)2.3
FCFY6.75%
OCF(TTM)2.75
OCFY8.06%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.56
PEG (5Y)0.63
Graham Number14.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.87% | ||
| ROE | 29.8% | ||
| ROCE | 31.44% | ||
| ROIC | 20.08% | ||
| ROICexc | 31.75% | ||
| ROICexgc | 34.59% | ||
| OM | 21.51% | ||
| PM (TTM) | 14.12% | ||
| GM | 86.54% | ||
| FCFM | 24.81% |
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-Score9
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 173.56% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 254.14 | ||
| Cash Conversion | 122.02% | ||
| Profit Quality | 175.73% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | 10.28 |
F-Score9
WACC10.24%
ROIC/WACC1.96
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)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
EPS Next Y30.12%
EPS Next 2Y21.6%
EPS Next 3Y21.3%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year3.77%
Revenue Next 2Y4.79%
Revenue Next 3Y5.64%
Revenue Next 5Y5.62%
EBIT growth 1Y230.44%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year35.83%
EBIT Next 3Y18.47%
EBIT Next 5Y13.88%
FCF growth 1Y-6.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y3.14%
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 7 / 10.
Can you provide the PE and PB ratios for CARG stock?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 16.78 and the Price/Book (PB) ratio is 7.76.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.