CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
35.52 USD
-0.7 (-1.93%)
35.52 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CARG. CARG was compared to 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making CARG a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on CARG. These ratings could make CARG a good candidate for value and quality 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.
CARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CARG (23.01%) is better than 94.29% of its industry peers.
With an excellent Return On Equity value of 40.48%, CARG belongs to the best 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 3 year average ROIC (8.25%) for CARG is below the current ROIC(23.46%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 22.47%, CARG belongs to the top 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.
Looking at the Gross Margin, with a value of 88.15%, CARG belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CARG 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.
2.2 Solvency
An Altman-Z score of 10.96 indicates that CARG is not in any danger for bankruptcy at the moment.
CARG has a Altman-Z score of 10.96. This is amongst the best in the industry. CARG outperforms 92.86% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.96 |
ROIC/WACC2.36
WACC9.93%
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.
CARG has a better Current ratio (2.87) than 70.00% of its industry peers.
A Quick Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.87, CARG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| 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
Looking at the last year, CARG shows a small growth in Revenue. The Revenue has grown by 4.21% in the last 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
The Revenue is expected to grow by 5.62% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.52, which indicates a correct valuation of CARG.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than 67.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. CARG is valued slightly cheaper when compared to this.
CARG is valuated correctly with a Price/Forward Earnings ratio of 13.81.
CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 65.71% of the companies in the same industry.
CARG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 65.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than the industry average as 72.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 14.19 |
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.
The excellent profitability rating of CARG may justify a higher PE ratio.
CARG's earnings are expected to grow with 21.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)0.62
EPS Next 2Y21.91%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.52
-0.7 (-1.93%)
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 Cap3.53B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target40.55 (14.16%)
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)1.04%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.81 | ||
| P/S | 3.81 | ||
| P/FCF | 14.01 | ||
| P/OCF | 12.25 | ||
| P/B | 9.39 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)2.15
EY6.05%
EPS(NY)2.57
Fwd EY7.24%
FCF(TTM)2.53
FCFY7.14%
OCF(TTM)2.9
OCFY8.17%
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 | 10.96 |
F-Score8
WACC9.93%
ROIC/WACC2.36
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 16.52 and the Price/Book (PB) ratio is 9.39.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.