CARGURUS INC (CARG) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CARG • US1417881091

28.51 USD
-0.1 (-0.35%)
At close: Feb 9, 2026
28.51 USD
0 (0%)
After Hours: 2/9/2026, 4:49:32 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG against 69 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes CARG very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

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.
  • CARG had positive earnings in 4 of the past 5 years.
  • In the past 5 years CARG always reported a positive cash flow from operatings.
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 0 50M 100M 150M 200M 250M

1.2 Ratios

  • With an excellent Return On Assets value of 23.01%, CARG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • With an excellent Return On Equity value of 40.48%, CARG belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 23.46%, CARG belongs to the top of the industry, outperforming 92.75% 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 13.54%.
  • The 3 year average ROIC (8.25%) for CARG is below the current ROIC(23.46%), indicating increased profibility in the last year.
Industry RankSector 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%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

  • CARG has a better Profit Margin (16.41%) than 82.61% of its industry peers.
  • CARG's Profit Margin has declined in the last couple of years.
  • CARG's Operating Margin of 22.47% is amongst the best of the industry. CARG outperforms 86.96% 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 88.15%, CARG belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
  • CARG's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

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.
  • 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 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 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 9.29 indicates that CARG is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of CARG (9.29) is better than 89.86% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.29
ROIC/WACC2.65
WACC8.86%
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 200M 400M 600M

2.3 Liquidity

  • CARG has a Current Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.87, CARG is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
  • A Quick Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
  • CARG has a better Quick ratio (2.87) than 75.36% of its industry peers.
Industry RankSector Rank
Current Ratio 2.87
Quick Ratio 2.87
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 100M 200M 300M 400M 500M

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

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.18% 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)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.55% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y30.89%
EPS Next 2Y22.52%
EPS Next 3Y21.68%
EPS Next 5Y21.55%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%

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.
  • 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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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.20, CARG is valued correctly.
  • Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • CARG is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
  • CARG is valuated reasonably with a Price/Forward Earnings ratio of 10.98.
  • CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 68.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, CARG is valued rather cheaply.
Industry RankSector Rank
PE 13.2
Fwd PE 10.98
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 66.67% of the companies in the same industry are more expensive than CARG, based on the Enterprise Value to EBITDA ratio.
  • 76.81% of the companies in the same industry are more expensive than CARG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.82
EV/EBITDA 10.82
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 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 21.68% in the coming years.
PEG (NY)0.43
PEG (5Y)0.49
EPS Next 2Y22.52%
EPS Next 3Y21.68%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for CARG!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARGURUS INC

NASDAQ:CARG (2/9/2026, 4:49:32 PM)

After market: 28.51 0 (0%)

28.51

-0.1 (-0.35%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners107.52%
Inst Owner Change-0.73%
Ins Owners2.03%
Ins Owner Change-0.81%
Market Cap2.72B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.69 (46.23%)
Short Float %5.79%
Short Ratio5.53
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)2
Avg EPS beat(2)2.56%
Min EPS beat(2)2.1%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.4%
Min EPS beat(4)2.1%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.61%
EPS beat(12)12
Avg EPS beat(12)22.55%
EPS beat(16)15
Avg EPS beat(16)18.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)0.05%
Revenue beat(16)5
Avg Revenue beat(16)0.86%
PT rev (1m)0.82%
PT rev (3m)2.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 13.2
Fwd PE 10.98
P/S 2.94
P/FCF 10.82
P/OCF 9.45
P/B 7.25
P/tB 7.92
EV/EBITDA 10.82
EPS(TTM)2.16
EY7.58%
EPS(NY)2.6
Fwd EY9.11%
FCF(TTM)2.64
FCFY9.24%
OCF(TTM)3.02
OCFY10.58%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.43
PEG (5Y)0.49
Graham Number13.83
Profitability
Industry RankSector 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 RankSector 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 9.29
F-Score8
WACC8.86%
ROIC/WACC2.65
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)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
EPS Next Y30.89%
EPS Next 2Y22.52%
EPS Next 3Y21.68%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.7%
EBIT Next 3Y19.22%
EBIT Next 5Y14.24%
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.


What is the valuation status for CARG stock?

ChartMill assigns a valuation rating of 8 / 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.


What is the valuation of CARGURUS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 13.2 and the Price/Book (PB) ratio is 7.25.