CARGURUS INC (CARG) Fundamental Analysis & Valuation

NASDAQ:CARG • US1417881091

Current stock price

36.07 USD
+0.3 (+0.84%)
Last:

This CARG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CARG Profitability Analysis

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • CARG's Return On Assets of 23.55% is amongst the best of the industry. CARG outperforms 95.65% of its industry peers.
  • The Return On Equity of CARG (41.66%) is better than 94.20% of its industry peers.
  • CARG has a Return On Invested Capital of 33.66%. This is amongst the best in the industry. CARG outperforms 98.55% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CARG is significantly above the industry average of 10.87%.
  • The last Return On Invested Capital (33.66%) for CARG is above the 3 year average (18.54%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 23.55%
ROE 41.66%
ROIC 33.66%
ROA(3y)9.83%
ROA(5y)10.07%
ROE(3y)16.86%
ROE(5y)15.38%
ROIC(3y)18.54%
ROIC(5y)16.15%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • With an excellent Profit Margin value of 17.19%, CARG belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
  • CARG's Profit Margin has improved in the last couple of years.
  • CARG has a better Operating Margin (27.01%) than 89.86% of its industry peers.
  • CARG's Operating Margin has improved in the last couple of years.
  • CARG has a Gross Margin of 92.78%. This is amongst the best in the industry. CARG outperforms 94.20% of its industry peers.
  • In the last couple of years the Gross Margin of CARG has remained more or less at the same level.
Industry RankSector Rank
OM 27.01%
PM (TTM) 17.19%
GM 92.78%
OM growth 3Y60.3%
OM growth 5Y8.78%
PM growth 3Y13.65%
PM growth 5Y4.08%
GM growth 3Y32.67%
GM growth 5Y0.12%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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10

2. CARG Health Analysis

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.
  • Compared to 1 year ago, CARG has less shares outstanding
  • The number of shares outstanding for CARG has been reduced compared to 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.
CARG Yearly Shares OutstandingCARG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
CARG Yearly Total Debt VS Total AssetsCARG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.2 Solvency

  • CARG has an Altman-Z score of 10.79. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 10.79, CARG belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 10.79
ROIC/WACC3.76
WACC8.94%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.3 Liquidity

  • CARG has a Current Ratio of 2.81. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • CARG has a better Current ratio (2.81) than 73.91% of its industry peers.
  • A Quick Ratio of 2.81 indicates that CARG has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 2.81, CARG is doing good in the industry, outperforming 73.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.81
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CARG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 29.48% over the past year.
  • Measured over the past years, CARG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.92% on average per year.
  • Looking at the last year, CARG shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
  • Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.
EPS 1Y (TTM)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%

3.2 Future

  • Based on estimates for the next years, CARG will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.70% on average per year.
  • The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y14.73%
EPS Next 2Y17.36%
EPS Next 3Y17.54%
EPS Next 5Y18.7%
Revenue Next Year8.09%
Revenue Next 2Y8.5%
Revenue Next 3Y8.03%
Revenue Next 5Y7.66%

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 2031 2 4 6

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6

4. CARG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 16.10 indicates a correct 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 62.32% of the companies listed in the same industry.
  • CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
  • The Price/Forward Earnings ratio is 14.03, which indicates a correct valuation of CARG.
  • Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.16, CARG is valued rather cheaply.
Industry RankSector Rank
PE 16.1
Fwd PE 14.03
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 73.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.91
EV/EBITDA 11.76
CARG Per share dataCARG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CARG may justify a higher PE ratio.
  • CARG's earnings are expected to grow with 17.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)1.01
EPS Next 2Y17.36%
EPS Next 3Y17.54%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CARG Dividend Analysis

5.1 Amount

  • CARG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CARG Fundamentals: All Metrics, Ratios and Statistics

CARGURUS INC

NASDAQ:CARG (4/15/2026, 11:34:53 AM)

36.07

+0.3 (+0.84%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19
Earnings (Next)05-07
Inst Owners102.8%
Inst Owner Change0.07%
Ins Owners2.72%
Ins Owner Change1.42%
Market Cap3.43B
Revenue(TTM)906.98M
Net Income(TTM)155.90M
Analysts79
Price Target36.49 (1.16%)
Short Float %7.98%
Short Ratio4.35
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1
Avg EPS beat(2)-0.12%
Min EPS beat(2)-2.34%
Max EPS beat(2)2.1%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-2.34%
Max EPS beat(4)3.76%
EPS beat(8)7
Avg EPS beat(8)6.06%
EPS beat(12)11
Avg EPS beat(12)12.56%
EPS beat(16)14
Avg EPS beat(16)15.73%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.04%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)-1.99%
PT rev (3m)-11.76%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.87%
Valuation
Industry RankSector Rank
PE 16.1
Fwd PE 14.03
P/S 3.79
P/FCF 12.91
P/OCF 11.63
P/B 9.18
P/tB 10.02
EV/EBITDA 11.76
EPS(TTM)2.24
EY6.21%
EPS(NY)2.57
Fwd EY7.13%
FCF(TTM)2.79
FCFY7.75%
OCF(TTM)3.1
OCFY8.6%
SpS9.53
BVpS3.93
TBVpS3.6
PEG (NY)1.09
PEG (5Y)1.01
Graham Number14.0757 (-60.98%)
Profitability
Industry RankSector Rank
ROA 23.55%
ROE 41.66%
ROCE 43.63%
ROIC 33.66%
ROICexc 50.95%
ROICexgc 55.7%
OM 27.01%
PM (TTM) 17.19%
GM 92.78%
FCFM 29.32%
ROA(3y)9.83%
ROA(5y)10.07%
ROE(3y)16.86%
ROE(5y)15.38%
ROIC(3y)18.54%
ROIC(5y)16.15%
ROICexc(3y)29.44%
ROICexc(5y)27.54%
ROICexgc(3y)33.71%
ROICexgc(5y)43.14%
ROCE(3y)24.04%
ROCE(5y)20.94%
ROICexgc growth 3Y-0.43%
ROICexgc growth 5Y-4.87%
ROICexc growth 3Y29.76%
ROICexc growth 5Y-0.35%
OM growth 3Y60.3%
OM growth 5Y8.78%
PM growth 3Y13.65%
PM growth 5Y4.08%
GM growth 3Y32.67%
GM growth 5Y0.12%
F-Score8
Asset Turnover1.37
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 103.42%
Cap/Sales 3.23%
Interest Coverage 415.16
Cash Conversion 108.05%
Profit Quality 170.6%
Current Ratio 2.81
Quick Ratio 2.81
Altman-Z 10.79
F-Score8
WACC8.94%
ROIC/WACC3.76
Cap/Depr(3y)186.3%
Cap/Depr(5y)126.28%
Cap/Sales(3y)6.5%
Cap/Sales(5y)4.4%
Profit Quality(3y)402.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
EPS Next Y14.73%
EPS Next 2Y17.36%
EPS Next 3Y17.54%
EPS Next 5Y18.7%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%
Revenue Next Year8.09%
Revenue Next 2Y8.5%
Revenue Next 3Y8.03%
Revenue Next 5Y7.66%
EBIT growth 1Y56.53%
EBIT growth 3Y31.18%
EBIT growth 5Y20.16%
EBIT Next Year24.88%
EBIT Next 3Y14.63%
EBIT Next 5Y12.49%
FCF growth 1Y64.64%
FCF growth 3Y3.66%
FCF growth 5Y12.26%
OCF growth 1Y15.57%
OCF growth 3Y4.86%
OCF growth 5Y13.51%

CARGURUS INC / CARG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CARGURUS INC (CARG) stock?

ChartMill assigns a fundamental rating of 7 / 10 to CARG.


What is the valuation status for CARG stock?

ChartMill assigns a valuation rating of 6 / 10 to CARGURUS INC (CARG). This can be considered as Fairly Valued.


Can you provide the profitability details for CARGURUS INC?

CARGURUS INC (CARG) has a profitability rating of 9 / 10.


Can you provide the financial health for CARG stock?

The financial health rating of CARGURUS INC (CARG) is 10 / 10.