CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG • US1417881091

30.17 USD
+0.97 (+3.32%)
At close: Feb 20, 2026
30.19 USD
+0.02 (+0.07%)
After Hours: 2/20/2026, 8:20:29 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, CARG scores 6 out of 10 in our fundamental rating. CARG was compared to 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 valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make CARG a good candidate for value investing.


Dividend Valuation Growth Profitability Health

7

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.
  • The reported net income has been mixed in the past 5 years: CARG reported negative net income in multiple years.
  • Of the past 5 years CARG 4 years had a positive operating cash flow.
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

  • CARG has a Return On Assets of 23.01%. This is amongst the best in the industry. CARG outperforms 97.10% of its industry peers.
  • With an excellent Return On Equity value of 40.48%, CARG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • The Return On Invested Capital of CARG (23.46%) is better than 92.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CARG is significantly below the industry average of 13.61%.
  • The last Return On Invested Capital (23.46%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
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.
  • In the last couple of years the Profit Margin of CARG has declined.
  • CARG has a better Operating Margin (22.47%) than 86.96% of its industry peers.
  • In the last couple of years the Operating Margin of CARG has grown nicely.
  • CARG has a Gross Margin of 88.15%. This is amongst the best in the industry. CARG outperforms 88.41% of its industry peers.
  • In the last couple of years the Gross Margin of CARG has declined.
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

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CARG is creating value.
  • 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 9.60 indicates that CARG is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 9.60, CARG belongs to the best of the industry, outperforming 89.86% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.6
ROIC/WACC2.69
WACC8.72%
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

  • A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.87, CARG is doing good in the industry, outperforming 75.36% of the companies in the same industry.
  • CARG has a Quick Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of CARG (2.87) is better 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

4

3. Growth

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.
EPS 1Y (TTM)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.49%

3.2 Future

  • CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.31% yearly.
  • Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y15.93%
EPS Next 2Y17.96%
EPS Next 3Y20.11%
EPS Next 5Y23.31%
Revenue Next Year6.1%
Revenue Next 2Y6.99%
Revenue Next 3Y6.95%
Revenue Next 5Y6.31%

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 accelerating.
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

7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.47, the valuation of CARG can be described as correct.
  • Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • CARG is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • CARG is valuated reasonably with a Price/Forward Earnings ratio of 11.62.
  • 66.67% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
  • CARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
Industry RankSector Rank
PE 13.47
Fwd PE 11.62
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 the industry average as 65.22% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 73.91% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.45
EV/EBITDA 11.45
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 a very decent profitability rating, which may justify a higher PE ratio.
  • CARG's earnings are expected to grow with 20.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.85
EPS Next 2Y17.96%
EPS Next 3Y20.11%

More info and screens

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

0

5. Dividend

5.1 Amount

  • CARG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARGURUS INC

NASDAQ:CARG (2/20/2026, 8:20:29 PM)

After market: 30.19 +0.02 (+0.07%)

30.17

+0.97 (+3.32%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners107.52%
Inst Owner Change-3.06%
Ins Owners2.03%
Ins Owner Change-0.81%
Market Cap2.88B
Revenue(TTM)N/A
Net Income(TTM)151.99M
Analysts79
Price Target41.69 (38.18%)
Short Float %5.51%
Short Ratio4.63
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)1.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 13.47
Fwd PE 11.62
P/S 3.11
P/FCF 11.45
P/OCF 10
P/B 7.67
P/tB 8.38
EV/EBITDA 11.45
EPS(TTM)2.24
EY7.42%
EPS(NY)2.6
Fwd EY8.61%
FCF(TTM)2.64
FCFY8.74%
OCF(TTM)3.02
OCFY10%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.85
PEG (5Y)0.85
Graham Number14.08
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 9.6
F-Score8
WACC8.72%
ROIC/WACC2.69
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)29.48%
EPS 3Y26.37%
EPS 5Y15.92%
EPS Q2Q%14.55%
EPS Next Y15.93%
EPS Next 2Y17.96%
EPS Next 3Y20.11%
EPS Next 5Y23.31%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.49%
Revenue Next Year6.1%
Revenue Next 2Y6.99%
Revenue Next 3Y6.95%
Revenue Next 5Y6.31%
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 6 / 10 to CARG.


What is the valuation status for CARG stock?

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 7 / 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 13.47 and the Price/Book (PB) ratio is 7.67.