CARGURUS INC (CARG) Stock Fundamental Analysis
NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock - Currency: USD
Overall CARG gets a fundamental rating of 5 out of 10. We evaluated CARG against 71 industry peers in the Interactive Media & Services industry. CARG has an excellent financial health rating, but there are some minor concerns on its profitability. CARG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CARG was profitable.
CARG had a positive operating cash flow in the past year.
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.
1.2 Ratios
CARG has a Return On Assets (-6.25%) which is comparable to the rest of the industry.
With a Return On Equity value of -10.06%, CARG perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
CARG has a Return On Invested Capital of 9.72%. This is amongst the best in the industry. CARG outperforms 83.33% of its industry peers.
CARG had an Average Return On Invested Capital over the past 3 years of 9.65%. This is below the industry average of 12.57%.
The 3 year average ROIC (9.65%) for CARG is below the current ROIC(9.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.25% | ||
| ROE | -10.06% | ||
| ROIC | 9.72% |
ROA(3y)8.09%
ROA(5y)10.08%
ROE(3y)10.46%
ROE(5y)13.71%
ROIC(3y)9.65%
ROIC(5y)11.03%
1.3 Margins
In the last couple of years the Profit Margin of CARG has declined.
CARG's Operating Margin of 9.24% is fine compared to the rest of the industry. CARG outperforms 74.24% of its industry peers.
In the last couple of years the Operating Margin of CARG has declined.
Looking at the Gross Margin, with a value of 80.74%, CARG is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | N/A | ||
| GM | 80.74% |
OM growth 3Y-41.4%
OM growth 5Y-6.92%
PM growth 3Y-37.7%
PM growth 5Y-25.02%
GM growth 3Y-8.24%
GM growth 5Y-5.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CARG is creating some 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.
2.2 Solvency
An Altman-Z score of 8.99 indicates that CARG is not in any danger for bankruptcy at the moment.
CARG has a better Altman-Z score (8.99) than 87.88% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.99 |
ROIC/WACC1.07
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.95 indicates that CARG has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.95, CARG is doing good in the industry, outperforming 68.18% of the companies in the same industry.
A Quick Ratio of 2.95 indicates that CARG has no problem at all paying its short term obligations.
The Quick ratio of CARG (2.95) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.52% over the past year.
CARG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.69% yearly.
EPS 1Y (TTM)39.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%57.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.43%
3.2 Future
The Earnings Per Share is expected to grow by 30.01% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.74% on average over the next years. This is quite good.
EPS Next Y11.56%
EPS Next 2Y15.52%
EPS Next 3Y24.38%
EPS Next 5Y30.01%
Revenue Next Year9.48%
Revenue Next 2Y8.93%
Revenue Next 3Y15.24%
Revenue Next 5Y19.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.01 indicates a rather expensive valuation of CARG.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 16.14, CARG is valued correctly.
CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 68.18% of the companies in the same industry.
CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
CARG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.58 | ||
| EV/EBITDA | 26.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CARG's earnings are expected to grow with 24.38% in the coming years.
PEG (NY)1.56
PEG (5Y)0.67
EPS Next 2Y15.52%
EPS Next 3Y24.38%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.15
-6.44 (-17.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.1%
Inst Owner Change-95.15%
Ins Owners1.89%
Ins Owner Change0.06%
Market Cap3.23B
Analysts80
Price Target40.92 (31.36%)
Short Float %6.23%
Short Ratio7.76
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)12.09%
Min EPS beat(2)3.99%
Max EPS beat(2)20.18%
EPS beat(4)4
Avg EPS beat(4)9.83%
Min EPS beat(4)2.05%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)32.13%
EPS beat(12)11
Avg EPS beat(12)23.38%
EPS beat(16)15
Avg EPS beat(16)26.19%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.78%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)1.08%
Revenue beat(12)5
Avg Revenue beat(12)1.82%
Revenue beat(16)8
Avg Revenue beat(16)2.49%
PT rev (1m)4.82%
PT rev (3m)5.89%
EPS NQ rev (1m)1.84%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)0.52%
EPS NY rev (3m)4.97%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.14 | ||
| P/S | 3.63 | ||
| P/FCF | 39.58 | ||
| P/OCF | 17.72 | ||
| P/B | 6.68 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | 26.36 |
EPS(TTM)1.73
EY5.55%
EPS(NY)1.93
Fwd EY6.2%
FCF(TTM)0.79
FCFY2.53%
OCF(TTM)1.76
OCFY5.64%
SpS8.57
BVpS4.66
TBVpS4.09
PEG (NY)1.56
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.25% | ||
| ROE | -10.06% | ||
| ROCE | 12.3% | ||
| ROIC | 9.72% | ||
| ROICexc | 15.42% | ||
| ROICexgc | 17.96% | ||
| OM | 9.24% | ||
| PM (TTM) | N/A | ||
| GM | 80.74% | ||
| FCFM | 9.18% |
ROA(3y)8.09%
ROA(5y)10.08%
ROE(3y)10.46%
ROE(5y)13.71%
ROIC(3y)9.65%
ROIC(5y)11.03%
ROICexc(3y)18.6%
ROICexc(5y)25.44%
ROICexgc(3y)41.88%
ROICexgc(5y)43.97%
ROCE(3y)12.22%
ROCE(5y)13.96%
ROICexcg growth 3Y-51.61%
ROICexcg growth 5Y-26.59%
ROICexc growth 3Y-53.78%
ROICexc growth 5Y-33.03%
OM growth 3Y-41.4%
OM growth 5Y-6.92%
PM growth 3Y-37.7%
PM growth 5Y-25.02%
GM growth 3Y-8.24%
GM growth 5Y-5.5%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 323.71% | ||
| Cap/Sales | 11.32% | ||
| Interest Coverage | 105.69 | ||
| Cash Conversion | 161.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z | 8.99 |
F-Score6
WACC9.06%
ROIC/WACC1.07
Cap/Depr(3y)52.51%
Cap/Depr(5y)81.19%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.16%
Profit Quality(3y)N/A
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 Y11.56%
EPS Next 2Y15.52%
EPS Next 3Y24.38%
EPS Next 5Y30.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.43%
Revenue Next Year9.48%
Revenue Next 2Y8.93%
Revenue Next 3Y15.24%
Revenue Next 5Y19.74%
EBIT growth 1Y-2.82%
EBIT growth 3Y-30.64%
EBIT growth 5Y7.06%
EBIT Next Year46.6%
EBIT Next 3Y23.28%
EBIT Next 5Y22.12%
FCF growth 1Y-23.57%
FCF growth 3Y-17.65%
FCF growth 5Y13.52%
OCF growth 1Y47%
OCF growth 3Y-7.37%
OCF growth 5Y19.22%