CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
36.28 USD
+0.09 (+0.25%)
36.28 USD
0 (0%)
CARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make CARG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year CARG was profitable.
CARG had a positive operating cash flow in the past year.
Of the past 5 years CARG 4 years were profitable.
Each year in the past 5 years CARG had a positive operating cash flow.
1.2 Ratios
CARG's Return On Assets of 17.87% is amongst the best of the industry. CARG outperforms 89.86% of its industry peers.
With an excellent Return On Equity value of 29.80%, CARG belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
The Return On Invested Capital of CARG (20.08%) is better than 89.86% of its industry peers.
CARG had an Average Return On Invested Capital over the past 3 years of 8.25%. This is below the industry average of 12.98%.
The last Return On Invested Capital (20.08%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.87% | ||
| ROE | 29.8% | ||
| ROIC | 20.08% |
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 (14.12%) than 81.16% of its industry peers.
In the last couple of years the Profit Margin of CARG has declined.
Looking at the Operating Margin, with a value of 21.51%, CARG belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
CARG's Operating Margin has improved in the last couple of years.
CARG's Gross Margin of 86.54% is amongst the best of the industry. CARG outperforms 88.41% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.51% | ||
| PM (TTM) | 14.12% | ||
| GM | 86.54% |
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.
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 10.76 indicates that CARG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.76, CARG belongs to the top of the industry, outperforming 88.41% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.76 |
ROIC/WACC2.15
WACC9.32%
2.3 Liquidity
CARG has a Current Ratio of 3.18. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.18, CARG is doing good in the industry, outperforming 73.91% of the companies in the same industry.
CARG has a Quick Ratio of 3.17. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CARG (3.17) is better than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.96%, which is quite impressive.
CARG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.69% yearly.
The Revenue has been growing slightly by 4.80% in the past year.
CARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.72% yearly.
EPS 1Y (TTM)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
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
CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y28.53%
EPS Next 2Y21.31%
EPS Next 3Y22.37%
EPS Next 5Y21.39%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.87, CARG is valued on the expensive side.
CARG's Price/Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 69.57% of the companies in the same industry.
CARG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
CARG is valuated correctly with a Price/Forward Earnings ratio of 14.25.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
CARG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARG is cheaper than 69.57% of the companies in the same industry.
CARG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CARG is cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.79 | ||
| EV/EBITDA | 15.09 |
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 22.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)0.67
EPS Next 2Y21.31%
EPS Next 3Y22.37%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.28
+0.09 (+0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.52%
Inst Owner Change-2.22%
Ins Owners2.24%
Ins Owner Change-0.92%
Market Cap3.60B
Analysts79
Price Target39.5 (8.88%)
Short Float %4.95%
Short Ratio4.17
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)3.39%
Min EPS beat(2)3.02%
Max EPS beat(2)3.76%
EPS beat(4)4
Avg EPS beat(4)3.87%
Min EPS beat(4)3.02%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)11
Avg EPS beat(12)20.74%
EPS beat(16)15
Avg EPS beat(16)19.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.39%
Revenue beat(4)1
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)0.91%
PT rev (1m)-0.23%
PT rev (3m)3.97%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)6.38%
EPS NY rev (1m)1.54%
EPS NY rev (3m)5.6%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 14.25 | ||
| P/S | 3.92 | ||
| P/FCF | 15.79 | ||
| P/OCF | 13.22 | ||
| P/B | 8.27 | ||
| P/tB | 8.94 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)2.03
EY5.6%
EPS(NY)2.55
Fwd EY7.02%
FCF(TTM)2.3
FCFY6.33%
OCF(TTM)2.75
OCFY7.57%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.63
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.87% | ||
| ROE | 29.8% | ||
| ROCE | 31.44% | ||
| ROIC | 20.08% | ||
| ROICexc | 31.75% | ||
| ROICexgc | 34.59% | ||
| OM | 21.51% | ||
| PM (TTM) | 14.12% | ||
| GM | 86.54% | ||
| FCFM | 24.81% |
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%
ROICexcg growth 3Y-17.23%
ROICexcg 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-Score9
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 173.56% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 254.14 | ||
| Cash Conversion | 122.02% | ||
| Profit Quality | 175.73% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | 10.76 |
F-Score9
WACC9.32%
ROIC/WACC2.15
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)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
EPS Next Y28.53%
EPS Next 2Y21.31%
EPS Next 3Y22.37%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
Revenue Next 5Y5.62%
EBIT growth 1Y230.44%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year31.06%
EBIT Next 3Y17.91%
EBIT Next 5Y13.88%
FCF growth 1Y-6.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y3.14%
OCF growth 3Y37.49%
OCF growth 5Y29.52%