CARGURUS INC (CARG)
US1417881091 - Common Stock
Taking everything into account, CARG scores 6 out of 10 in our fundamental rating. CARG was compared to 73 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CARG a good candidate for growth 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.
In the past 5 years CARG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -6.25%, CARG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -10.06%, CARG is in line with its industry, outperforming 54.17% of the companies in the same industry.
The Return On Invested Capital of CARG (9.72%) is better than 86.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARG is in line with the industry average of 10.97%.
The 3 year average ROIC (9.65%) for CARG is below the current ROIC(9.72%), indicating increased profibility in the last year.
| 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
In the last couple of years the Profit Margin of CARG has declined.
CARG's Operating Margin of 9.24% is fine compared to the rest of the industry. CARG outperforms 76.39% of its industry peers.
In the last couple of years the Operating Margin of CARG has declined.
The Gross Margin of CARG (80.74%) is better than 72.22% 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
CARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 10.02 indicates that CARG is not in any danger for bankruptcy at the moment.
The Altman-Z score of CARG (10.02) is better than 90.28% 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 | 10.02 |
ROIC/WACC1.06
WACC9.21%
2.3 Liquidity
A Current Ratio of 2.95 indicates that CARG has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.95, CARG is doing good in the industry, outperforming 66.67% 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.
CARG has a better Quick ratio (2.95) than 66.67% 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 impressive 37.84% over the past year.
CARG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
CARG shows a decrease in Revenue. In the last year, the revenue decreased by -9.08%.
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
CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.78% yearly.
Based on estimates for the next years, CARG will show a quite strong growth in Revenue. The Revenue will grow by 16.05% on average per year.
EPS Next Y40.77%
EPS Next 2Y25.46%
EPS Next 3Y23.68%
EPS Next 5Y33.78%
Revenue Next Year-1.55%
Revenue Next 2Y3.78%
Revenue Next 3Y5.33%
Revenue Next 5Y16.05%
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.
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 23.55 indicates a rather 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 69.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. CARG is around the same levels.
CARG is valuated rather expensively with a Price/Forward Earnings ratio of 18.46.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
CARG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARG is on the same level as its industry peers.
CARG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.78 | ||
| EV/EBITDA | 30.83 |
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.
A more expensive valuation may be justified as CARG's earnings are expected to grow with 23.68% in the coming years.
PEG (NY)0.58
PEG (5Y)0.74
EPS Next 2Y25.46%
EPS Next 3Y23.68%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARGURUS INC
NASDAQ:CARG (12/20/2024, 8:00:01 PM)
After market: 36.033 +0 (+0.01%)36.03
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.26%
Inst Owner Change-1.98%
Ins Owners2.1%
Ins Owner Change0.95%
Market Cap3.74B
Analysts80
Price Target39.03 (8.33%)
Short Float %6.52%
Short Ratio8.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)31.02%
PT rev (3m)33.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)36.28%
EPS NY rev (1m)4.43%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 18.46 | ||
| P/S | 4.2 | ||
| P/FCF | 45.78 | ||
| P/OCF | 20.5 | ||
| P/B | 7.73 | ||
| P/tB | 8.82 | ||
| EV/EBITDA | 30.83 |
EPS(TTM)1.53
EY4.25%
EPS(NY)1.95
Fwd EY5.42%
FCF(TTM)0.79
FCFY2.18%
OCF(TTM)1.76
OCFY4.88%
SpS8.57
BVpS4.66
TBVpS4.09
PEG (NY)0.58
PEG (5Y)0.74
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 | 10.02 |
F-Score6
WACC9.21%
ROIC/WACC1.06
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-1.55%
Revenue Next 2Y3.78%
Revenue Next 3Y5.33%
Revenue Next 5Y16.05%
EBIT growth 1Y-2.82%
EBIT growth 3Y-30.64%
EBIT growth 5Y7.06%
EBIT Next Year45.3%
EBIT Next 3Y23.31%
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%