CARGURUS INC (CARG) Stock Fundamental Analysis
NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock - Currency: USD
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 has a decent growth rate and is not valued too expensively. With these ratings, CARG could be worth investigating further for 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.
Of the past 5 years CARG 4 years were profitable.
In the past 5 years CARG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.54%, CARG is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
CARG has a better Return On Equity (3.87%) than 71.43% of its industry peers.
CARG's Return On Invested Capital of 13.76% is amongst the best of the industry. CARG outperforms 87.14% of its industry peers.
CARG had an Average Return On Invested Capital over the past 3 years of 7.96%. This is below the industry average of 11.51%.
The last Return On Invested Capital (13.76%) for CARG is above the 3 year average (7.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 3.87% | ||
| ROIC | 13.76% |
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)7.96%
ROIC(5y)10.13%
1.3 Margins
With a decent Profit Margin value of 2.34%, CARG is doing good in the industry, outperforming 65.71% of the companies in the same industry.
In the last couple of years the Profit Margin of CARG has declined.
CARG has a Operating Margin of 17.63%. This is amongst the best in the industry. CARG outperforms 87.14% of its industry peers.
CARG's Operating Margin has improved in the last couple of years.
The Gross Margin of CARG (83.71%) is better than 80.00% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 2.34% | ||
| GM | 83.71% |
OM growth 3Y1.99%
OM growth 5Y23.21%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.14%
GM growth 5Y-2.51%
2. Health
2.1 Basic Checks
CARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
CARG has an Altman-Z score of 8.57. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
CARG's Altman-Z score of 8.57 is amongst the best of the industry. CARG outperforms 90.00% 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 | 8.57 |
ROIC/WACC1.53
WACC8.99%
2.3 Liquidity
A Current Ratio of 4.20 indicates that CARG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.20, CARG belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
A Quick Ratio of 4.20 indicates that CARG has no problem at all paying its short term obligations.
CARG has a better Quick ratio (4.20) than 84.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.52% 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 decreased by -2.17% 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)39.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%57.14%
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%2.43%
3.2 Future
Based on estimates for the next years, CARG will show a very strong growth in Earnings Per Share. The EPS will grow by 28.92% on average per year.
CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.68% yearly.
EPS Next Y12.17%
EPS Next 2Y13.77%
EPS Next 3Y16.42%
EPS Next 5Y28.92%
Revenue Next Year5.64%
Revenue Next 2Y6.8%
Revenue Next 3Y8.06%
Revenue Next 5Y6.68%
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
CARG is valuated correctly with a Price/Earnings ratio of 15.17.
CARG's Price/Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 77.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. CARG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.52, CARG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, CARG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 13.52 |
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 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 68.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CARG has a very decent 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 16.42% in the coming years.
PEG (NY)1.25
PEG (5Y)0.57
EPS Next 2Y13.77%
EPS Next 3Y16.42%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.24
-0.37 (-1.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.1%
Inst Owner Change-0.2%
Ins Owners1.89%
Ins Owner Change2.17%
Market Cap2.73B
Analysts82.11
Price Target39.43 (50.27%)
Short Float %6.47%
Short Ratio5.15
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)4.35%
Min EPS beat(2)3.99%
Max EPS beat(2)4.7%
EPS beat(4)4
Avg EPS beat(4)10.49%
Min EPS beat(4)3.99%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)18.03%
EPS beat(12)11
Avg EPS beat(12)20.43%
EPS beat(16)15
Avg EPS beat(16)25.6%
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)0.64%
Revenue beat(12)4
Avg Revenue beat(12)-0.05%
Revenue beat(16)8
Avg Revenue beat(16)2.28%
PT rev (1m)0%
PT rev (3m)1%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)4.48%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 13.52 | ||
| P/S | 3.05 | ||
| P/FCF | 16.89 | ||
| P/OCF | 10.68 | ||
| P/B | 5.04 | ||
| P/tB | 5.64 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)1.73
EY6.59%
EPS(NY)1.94
Fwd EY7.4%
FCF(TTM)1.55
FCFY5.92%
OCF(TTM)2.46
OCFY9.36%
SpS8.6
BVpS5.21
TBVpS4.65
PEG (NY)1.25
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 3.87% | ||
| ROCE | 21.55% | ||
| ROIC | 13.76% | ||
| ROICexc | 23.56% | ||
| ROICexgc | 27.26% | ||
| OM | 17.63% | ||
| PM (TTM) | 2.34% | ||
| GM | 83.71% | ||
| FCFM | 18.06% |
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)7.96%
ROIC(5y)10.13%
ROICexc(3y)15.22%
ROICexc(5y)22.03%
ROICexgc(3y)26.33%
ROICexgc(5y)37.26%
ROCE(3y)12.46%
ROCE(5y)15.86%
ROICexcg growth 3Y-19%
ROICexcg growth 5Y8.55%
ROICexc growth 3Y0.82%
ROICexc growth 5Y8.38%
OM growth 3Y1.99%
OM growth 5Y23.21%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.14%
GM growth 5Y-2.51%
F-Score8
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 370.46% | ||
| Cap/Sales | 10.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.6% | ||
| Profit Quality | 770.29% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 | ||
| Altman-Z | 8.57 |
F-Score8
WACC8.99%
ROIC/WACC1.53
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)39.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%57.14%
EPS Next Y12.17%
EPS Next 2Y13.77%
EPS Next 3Y16.42%
EPS Next 5Y28.92%
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%2.43%
Revenue Next Year5.64%
Revenue Next 2Y6.8%
Revenue Next 3Y8.06%
Revenue Next 5Y6.68%
EBIT growth 1Y383.11%
EBIT growth 3Y-0.09%
EBIT growth 5Y33.95%
EBIT Next Year22.24%
EBIT Next 3Y17.16%
EBIT Next 5Y18.11%
FCF growth 1Y93.89%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y105.17%
OCF growth 3Y37.49%
OCF growth 5Y29.52%