CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
35.76 USD
+0.84 (+2.41%)
35.76 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 gets an excellent profitability rating and is at the same time showing great financial health properties. CARG has a correct valuation and a medium growth rate. 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.
Of the past 5 years CARG 4 years were profitable.
Each year in the past 5 years CARG had a positive operating cash flow.
1.2 Ratios
CARG's Return On Assets of 17.87% is amongst the best of the industry. CARG outperforms 88.57% of its industry peers.
CARG's Return On Equity of 29.80% is amongst the best of the industry. CARG outperforms 94.29% of its industry peers.
With an excellent Return On Invested Capital value of 20.08%, CARG belongs to the best 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 significantly below the industry average of 13.27%.
The 3 year average ROIC (8.25%) for CARG is below the current ROIC(20.08%), indicating increased profibility in the last year.
| 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
The Profit Margin of CARG (14.12%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of CARG has declined.
The Operating Margin of CARG (21.51%) is better than 87.14% of its industry peers.
CARG's Operating Margin has improved in the last couple of years.
CARG has a Gross Margin of 86.54%. This is amongst the best in the industry. CARG outperforms 88.57% of its industry peers.
CARG's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CARG is creating value.
CARG has less shares outstanding than it did 1 year ago.
CARG has less shares outstanding than it did 5 years ago.
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 10.48 indicates that CARG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.48, CARG belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 | 10.48 |
ROIC/WACC1.96
WACC10.25%
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.
CARG's Current ratio of 3.18 is fine compared to the rest of the industry. CARG outperforms 74.29% of its industry peers.
CARG has a Quick Ratio of 3.17. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG has a better Quick ratio (3.17) than 74.29% of its industry peers.
| 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.
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 4.80% in the past year.
The Revenue has been growing by 8.72% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 21.39% on average over the next years. This is a very strong growth
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y30%
EPS Next 2Y21.64%
EPS Next 3Y20.73%
EPS Next 5Y21.39%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
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
A Price/Earnings ratio of 17.62 indicates a rather expensive valuation of CARG.
64.29% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.69, CARG is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of CARG.
67.14% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, CARG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
70.00% 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 | 15.56 | ||
| EV/EBITDA | 14.49 |
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.
CARG has a very decent profitability rating, which may justify a higher PE ratio.
CARG's earnings are expected to grow with 20.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)0.66
EPS Next 2Y21.64%
EPS Next 3Y20.73%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.76
+0.84 (+2.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.31%
Ins Owners2.17%
Ins Owner Change-2.27%
Market Cap3.55B
Analysts79
Price Target39.5 (10.46%)
Short Float %4.62%
Short Ratio3.51
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)0%
PT rev (3m)-0.23%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)1.14%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 13.97 | ||
| P/S | 3.86 | ||
| P/FCF | 15.56 | ||
| P/OCF | 13.03 | ||
| P/B | 8.15 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)2.03
EY5.68%
EPS(NY)2.56
Fwd EY7.16%
FCF(TTM)2.3
FCFY6.43%
OCF(TTM)2.75
OCFY7.68%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.59
PEG (5Y)0.66
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%
ROICexcg growth 3Y-17.23%
ROICexcg 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 | 10.48 |
F-Score9
WACC10.25%
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%
EPS Next 2Y21.64%
EPS Next 3Y20.73%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
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%