CARGURUS INC (CARG) Fundamental Analysis & Valuation

NASDAQ:CARG • US1417881091

Current stock price

33.6 USD
-0.39 (-1.15%)
At close:
33.6 USD
0 (0%)
After Hours:

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

  • CARG had positive earnings in the past year.
  • CARG had a positive operating cash flow in the past year.
  • 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 2025 0 100M 200M

1.2 Ratios

  • CARG has a better Return On Assets (23.55%) than 95.65% of its industry peers.
  • The Return On Equity of CARG (41.66%) is better than 95.65% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 33.66%, CARG belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CARG is significantly above the industry average of 11.15%.
  • The 3 year average ROIC (18.54%) for CARG is below the current ROIC(33.66%), indicating increased profibility in the last year.
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

  • CARG's Profit Margin of 17.19% is amongst the best of the industry. CARG outperforms 84.06% of its industry peers.
  • In the last couple of years the Profit Margin of CARG has grown nicely.
  • With an excellent Operating Margin value of 27.01%, CARG belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
  • CARG's Operating Margin has improved in the last couple of years.
  • The Gross Margin of CARG (92.78%) is better than 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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CARG is creating value.
  • CARG has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CARG has less shares outstanding
  • 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

  • An Altman-Z score of 10.44 indicates that CARG is not in any danger for bankruptcy at the moment.
  • CARG has a better Altman-Z score (10.44) than 92.75% 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 10.44
ROIC/WACC3.73
WACC9.03%
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

  • A Current Ratio of 2.81 indicates that CARG has no problem at all paying its short term obligations.
  • CARG has a Current ratio of 2.81. This is in the better half of the industry: CARG outperforms 72.46% of its industry peers.
  • A Quick Ratio of 2.81 indicates that CARG has no problem at all paying its short term obligations.
  • CARG's Quick ratio of 2.81 is fine compared to the rest of the industry. CARG outperforms 72.46% of its industry peers.
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.
  • The Revenue has been growing slightly by 1.41% in the past year.
  • CARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.46% yearly.
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

  • The Earnings Per Share is expected to grow by 18.70% on average over the next years. This is quite good.
  • CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.66% yearly.
EPS Next Y15.11%
EPS Next 2Y17.2%
EPS Next 3Y17.62%
EPS Next 5Y18.7%
Revenue Next Year7.67%
Revenue Next 2Y8.21%
Revenue Next 3Y7.49%
Revenue Next 5Y7.66%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.00 indicates a correct valuation of CARG.
  • 62.32% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of CARG to the average of the S&P500 Index (25.23), we can say CARG is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 13.03 indicates a correct valuation of CARG.
  • Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 62.32% of the companies in the same industry.
  • CARG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15
Fwd PE 13.03
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

  • Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than 71.01% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.03
EV/EBITDA 11.14
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.
  • The excellent profitability rating of CARG may justify a higher PE ratio.
  • CARG's earnings are expected to grow with 17.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)0.94
EPS Next 2Y17.2%
EPS Next 3Y17.62%

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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CARG Fundamentals: All Metrics, Ratios and Statistics

CARGURUS INC

NASDAQ:CARG (3/20/2026, 8:00:03 PM)

After market: 33.6 0 (0%)

33.6

-0.39 (-1.15%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners102.6%
Inst Owner Change-2.76%
Ins Owners1.97%
Ins Owner Change1.36%
Market Cap3.20B
Revenue(TTM)906.98M
Net Income(TTM)155.90M
Analysts79
Price Target37.23 (10.8%)
Short Float %7.95%
Short Ratio4.93
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)-10.7%
PT rev (3m)-9.41%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)1.48%
Valuation
Industry RankSector Rank
PE 15
Fwd PE 13.03
P/S 3.53
P/FCF 12.03
P/OCF 10.83
P/B 8.55
P/tB 9.34
EV/EBITDA 11.14
EPS(TTM)2.24
EY6.67%
EPS(NY)2.58
Fwd EY7.67%
FCF(TTM)2.79
FCFY8.32%
OCF(TTM)3.1
OCFY9.23%
SpS9.53
BVpS3.93
TBVpS3.6
PEG (NY)0.99
PEG (5Y)0.94
Graham Number14.08
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 10.44
F-Score8
WACC9.03%
ROIC/WACC3.73
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 Y15.11%
EPS Next 2Y17.2%
EPS Next 3Y17.62%
EPS Next 5Y18.7%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%
Revenue Next Year7.67%
Revenue Next 2Y8.21%
Revenue Next 3Y7.49%
Revenue Next 5Y7.66%
EBIT growth 1Y56.53%
EBIT growth 3Y31.18%
EBIT growth 5Y20.16%
EBIT Next Year25.32%
EBIT Next 3Y15%
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.


How profitable is CARGURUS INC (CARG) stock?

CARGURUS INC (CARG) has a profitability rating of 9 / 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 15 and the Price/Book (PB) ratio is 8.55.