CARGURUS INC (CARG) Fundamental Analysis & Valuation

NASDAQ:CARG • US1417881091

Current stock price

36.21 USD
+0.35 (+0.98%)
At close:
36.0083 USD
-0.2 (-0.56%)
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

  • 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.
  • 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

  • With an excellent Return On Assets value of 23.55%, CARG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • CARG has a better Return On Equity (41.66%) than 94.20% of its industry peers.
  • CARG's Return On Invested Capital of 33.66% is amongst the best of the industry. CARG outperforms 98.55% of its industry peers.
  • CARG had an Average Return On Invested Capital over the past 3 years of 18.54%. This is significantly above the industry average of 10.87%.
  • The last Return On Invested Capital (33.66%) for CARG is above the 3 year average (18.54%), which is a sign of increasing profitability.
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 81.16% of its industry peers.
  • In the last couple of years the Profit Margin of CARG has grown nicely.
  • CARG has a Operating Margin of 27.01%. This is amongst the best in the industry. CARG outperforms 89.86% of its industry peers.
  • In the last couple of years the Operating Margin of CARG has grown nicely.
  • Looking at the Gross Margin, with a value of 92.78%, CARG belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
  • CARG's Gross Margin has been stable in the last couple of years.
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

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

  • CARG has an Altman-Z score of 10.88. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
  • CARG has a Altman-Z score of 10.88. This is amongst the best in the industry. CARG outperforms 92.75% of its industry peers.
  • CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 10.88
ROIC/WACC3.77
WACC8.93%
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 better Current ratio (2.81) than 73.91% of its industry peers.
  • CARG has a Quick Ratio of 2.81. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of CARG (2.81) is better than 73.91% 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.
  • CARG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.92% yearly.
  • The Revenue has been growing slightly by 1.41% in the past year.
  • Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 10.46% on average per year.
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.
  • Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y14.73%
EPS Next 2Y17.36%
EPS Next 3Y17.54%
EPS Next 5Y18.7%
Revenue Next Year8.09%
Revenue Next 2Y8.5%
Revenue Next 3Y8.03%
Revenue Next 5Y7.66%

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.
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

More info and screens

Find the best growth stocksShow best growing peers

6

4. CARG Valuation Analysis

4.1 Price/Earnings Ratio

  • CARG is valuated correctly with a Price/Earnings ratio of 16.17.
  • 63.77% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.53. CARG is valued slightly cheaper when compared to this.
  • CARG is valuated correctly with a Price/Forward Earnings ratio of 14.09.
  • Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
  • CARG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.17
Fwd PE 14.09
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 69.57% of the companies listed 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 RankSector Rank
P/FCF 12.96
EV/EBITDA 11.92
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CARG may justify a higher PE ratio.
  • A more expensive valuation may be justified as CARG's earnings are expected to grow with 17.54% in the coming years.
PEG (NY)1.1
PEG (5Y)1.02
EPS Next 2Y17.36%
EPS Next 3Y17.54%

More info and screens

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

0

5. CARG Dividend Analysis

5.1 Amount

  • No dividends for CARG!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARG Fundamentals: All Metrics, Ratios and Statistics

CARGURUS INC

NASDAQ:CARG (4/16/2026, 8:17:26 PM)

After market: 36.0083 -0.2 (-0.56%)

36.21

+0.35 (+0.98%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-19
Earnings (Next)05-07
Inst Owners102.8%
Inst Owner Change0.07%
Ins Owners2.72%
Ins Owner Change1.42%
Market Cap3.45B
Revenue(TTM)906.98M
Net Income(TTM)155.90M
Analysts79
Price Target36.49 (0.77%)
Short Float %7.98%
Short Ratio4.35
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)-1.99%
PT rev (3m)-11.76%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.87%
Valuation
Industry RankSector Rank
PE 16.17
Fwd PE 14.09
P/S 3.8
P/FCF 12.96
P/OCF 11.67
P/B 9.21
P/tB 10.06
EV/EBITDA 11.92
EPS(TTM)2.24
EY6.19%
EPS(NY)2.57
Fwd EY7.1%
FCF(TTM)2.79
FCFY7.72%
OCF(TTM)3.1
OCFY8.57%
SpS9.53
BVpS3.93
TBVpS3.6
PEG (NY)1.1
PEG (5Y)1.02
Graham Number14.0757 (-61.13%)
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 10.88
F-Score8
WACC8.93%
ROIC/WACC3.77
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 Y14.73%
EPS Next 2Y17.36%
EPS Next 3Y17.54%
EPS Next 5Y18.7%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y-18.17%
Revenue growth 5Y10.46%
Sales Q2Q%5.49%
Revenue Next Year8.09%
Revenue Next 2Y8.5%
Revenue Next 3Y8.03%
Revenue Next 5Y7.66%
EBIT growth 1Y56.53%
EBIT growth 3Y31.18%
EBIT growth 5Y20.16%
EBIT Next Year24.88%
EBIT Next 3Y14.63%
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.


Can you provide the profitability details for CARGURUS INC?

CARGURUS INC (CARG) has a profitability rating of 9 / 10.


Can you provide the financial health for CARG stock?

The financial health rating of CARGURUS INC (CARG) is 10 / 10.