CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
35.65 USD
+1.02 (+2.95%)
35.79 USD
+0.14 (+0.39%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make CARG suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
CARG had positive earnings in the past year.
CARG had a positive operating cash flow in the past year.
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's Return On Assets of 23.01% is amongst the best of the industry. CARG outperforms 94.29% of its industry peers.
Looking at the Return On Equity, with a value of 40.48%, CARG belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.46%, CARG belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARG is significantly below the industry average of 13.59%.
The last Return On Invested Capital (23.46%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.01% | ||
| ROE | 40.48% | ||
| ROIC | 23.46% |
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
CARG has a better Profit Margin (16.41%) than 81.43% of its industry peers.
CARG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.47%, CARG belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
CARG's Operating Margin has improved in the last couple of years.
The Gross Margin of CARG (88.15%) is better than 88.57% of its industry peers.
CARG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.47% | ||
| PM (TTM) | 16.41% | ||
| GM | 88.15% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CARG is creating value.
CARG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CARG has been reduced compared to 5 years ago.
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CARG has an Altman-Z score of 10.78. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
CARG's Altman-Z score of 10.78 is amongst the best of the industry. CARG outperforms 92.86% 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 | 10.78 |
ROIC/WACC2.35
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.87, CARG is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CARG has a Quick Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG's Quick ratio of 2.87 is fine compared to the rest of the industry. CARG outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.52% 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 4.21% in the past year.
Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 8.72% on average per year.
EPS 1Y (TTM)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
3.2 Future
The Earnings Per Share is expected to grow by 21.39% on average over the next years. This is a very strong growth
CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.58, CARG is valued correctly.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CARG to the average of the S&P500 Index (26.34), we can say CARG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.86, the valuation of CARG can be described as correct.
67.14% 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 rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than 65.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 13.82 |
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 an outstanding 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 21.62% in the coming years.
PEG (NY)0.56
PEG (5Y)0.62
EPS Next 2Y21.91%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.65
+1.02 (+2.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.82%
Ins Owners2.17%
Ins Owner Change-1.54%
Market Cap3.54B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target40.55 (13.74%)
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)2.13%
Min EPS beat(2)1.25%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.18%
Min EPS beat(4)1.25%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.5%
EPS beat(12)12
Avg EPS beat(12)22.48%
EPS beat(16)15
Avg EPS beat(16)18.33%
Revenue beat(2)0
Avg Revenue beat(2)-49.69%
Min Revenue beat(2)-98%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-26.4%
Min Revenue beat(4)-98%
Max Revenue beat(4)-1.39%
Revenue beat(8)1
Avg Revenue beat(8)-13.49%
Revenue beat(12)3
Avg Revenue beat(12)-8.08%
Revenue beat(16)5
Avg Revenue beat(16)-5.23%
PT rev (1m)2.64%
PT rev (3m)2.4%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 13.86 | ||
| P/S | 3.82 | ||
| P/FCF | 14.07 | ||
| P/OCF | 12.29 | ||
| P/B | 9.43 | ||
| P/tB | 10.3 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)2.15
EY6.03%
EPS(NY)2.57
Fwd EY7.21%
FCF(TTM)2.53
FCFY7.11%
OCF(TTM)2.9
OCFY8.14%
SpS9.33
BVpS3.78
TBVpS3.46
PEG (NY)0.56
PEG (5Y)0.62
Graham Number13.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.01% | ||
| ROE | 40.48% | ||
| ROCE | 36.74% | ||
| ROIC | 23.46% | ||
| ROICexc | 34.28% | ||
| ROICexgc | 37.36% | ||
| OM | 22.47% | ||
| PM (TTM) | 16.41% | ||
| GM | 88.15% | ||
| FCFM | 27.15% |
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-Score8
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 131.49% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 319.79 | ||
| Cash Conversion | 122.09% | ||
| Profit Quality | 165.52% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 | ||
| Altman-Z | 10.78 |
F-Score8
WACC9.99%
ROIC/WACC2.35
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)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year35.83%
EBIT Next 3Y18.47%
EBIT Next 5Y13.88%
FCF growth 1Y31.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y32.49%
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 7 / 10 to CARGURUS INC (CARG). This can be considered as Undervalued.
How profitable is CARGURUS INC (CARG) stock?
CARGURUS INC (CARG) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CARG stock?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 16.58 and the Price/Book (PB) ratio is 9.43.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.