CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
36.09 USD
+0.57 (+1.6%)
We assign a fundamental rating of 7 out of 10 to CARG. CARG was compared to 70 industry peers in the Interactive Media & Services industry. CARG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make CARG a good candidate for value and quality investing.
1. Profitability
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.
1.2 Ratios
CARG has a better Return On Assets (23.01%) than 92.86% of its industry peers.
CARG has a better Return On Equity (40.48%) than 98.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.46%, CARG belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
CARG had an Average Return On Invested Capital over the past 3 years of 8.25%. This is significantly below the industry average of 13.26%.
The 3 year average ROIC (8.25%) for CARG is below the current ROIC(23.46%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 16.41%, CARG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CARG's Profit Margin has declined in the last couple of years.
The Operating Margin of CARG (22.47%) is better than 88.57% of its industry peers.
CARG's Operating Margin has improved in the last couple of years.
CARG has a better Gross Margin (88.15%) than 88.57% of its industry peers.
CARG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
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.
The number of shares outstanding for CARG has been reduced compared to 1 year ago.
The number of shares outstanding for CARG has been reduced compared to 5 years ago.
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
CARG has an Altman-Z score of 10.96. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.96, CARG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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 | 10.96 |
ROIC/WACC2.32
WACC10.1%
2.3 Liquidity
A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
CARG's Current ratio of 2.87 is fine compared to the rest of the industry. CARG outperforms 71.43% of its industry peers.
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 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
3. Growth
3.1 Past
CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.52%, which is quite impressive.
Measured over the past years, CARG shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.69% on average per year.
The Revenue has been growing slightly by 4.21% 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)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
3.2 Future
Based on estimates for the next years, CARG will show a very strong growth in Earnings Per Share. The EPS will grow by 21.39% on average per year.
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.79 indicates a correct valuation of CARG.
67.14% 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 (25.89), we can say CARG is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.04 indicates a correct valuation of CARG.
CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 65.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CARG to the average of the S&P500 Index (34.59), we can say CARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
CARG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARG is cheaper than 64.29% of the companies in the same industry.
71.43% of the companies in the same industry are more expensive than CARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 14.19 |
4.3 Compensation for Growth
CARG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CARG may justify a higher PE ratio.
CARG's earnings are expected to grow with 21.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)0.63
EPS Next 2Y21.91%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CARG (11/17/2025, 12:15:01 PM)
36.09
+0.57 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.85%
Ins Owners2.17%
Ins Owner Change-13.71%
Market Cap3.58B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target40.55 (12.36%)
Short Float %5.38%
Short Ratio4.31
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)2.13%
Min EPS beat(2)1.25%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.18%
Min EPS beat(4)1.25%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.5%
EPS beat(12)12
Avg EPS beat(12)22.48%
EPS beat(16)15
Avg EPS beat(16)18.33%
Revenue beat(2)0
Avg Revenue beat(2)-49.69%
Min Revenue beat(2)-98%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-26.4%
Min Revenue beat(4)-98%
Max Revenue beat(4)-1.39%
Revenue beat(8)1
Avg Revenue beat(8)-13.49%
Revenue beat(12)3
Avg Revenue beat(12)-8.08%
Revenue beat(16)5
Avg Revenue beat(16)-5.23%
PT rev (1m)2.64%
PT rev (3m)2.4%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 14.04 | ||
| P/S | 3.87 | ||
| P/FCF | 14.24 | ||
| P/OCF | 12.44 | ||
| P/B | 9.54 | ||
| P/tB | 10.43 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)2.15
EY5.96%
EPS(NY)2.57
Fwd EY7.12%
FCF(TTM)2.53
FCFY7.02%
OCF(TTM)2.9
OCFY8.04%
SpS9.33
BVpS3.78
TBVpS3.46
PEG (NY)0.57
PEG (5Y)0.63
Graham Number13.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.96 |
F-Score8
WACC10.1%
ROIC/WACC2.32
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)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year35.83%
EBIT Next 3Y18.47%
EBIT Next 5Y13.88%
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 7 / 10 to CARG.
Can you provide the valuation status for CARGURUS INC?
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.
Can you provide the PE and PB ratios for CARG stock?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 16.79 and the Price/Book (PB) ratio is 9.54.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.