CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
11.92 USD
-0.19 (-1.57%)
11.92 USD
0 (0%)
Taking everything into account, CARS scores 4 out of 10 in our fundamental rating. CARS was compared to 70 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CARS was profitable.
In the past year CARS had a positive cash flow from operations.
Of the past 5 years CARS 4 years were profitable.
Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.80%, CARS is doing good in the industry, outperforming 67.14% of the companies in the same industry.
With a decent Return On Equity value of 6.27%, CARS is doing good in the industry, outperforming 72.86% of the companies in the same industry.
The Return On Invested Capital of CARS (4.76%) is better than 70.00% of its industry peers.
CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 14.04%.
The last Return On Invested Capital (4.76%) for CARS is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.27% | ||
| ROIC | 4.76% |
ROA(3y)5.37%
ROA(5y)-11.23%
ROE(3y)12.65%
ROE(5y)-38.25%
ROIC(3y)4.71%
ROIC(5y)4.14%
1.3 Margins
Looking at the Profit Margin, with a value of 4.16%, CARS is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
CARS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.10%, CARS is doing good in the industry, outperforming 67.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CARS has declined.
Looking at the Gross Margin, with a value of 67.07%, CARS is in line with its industry, outperforming 57.14% of the companies in the same industry.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 4.16% | ||
| GM | 67.07% |
OM growth 3Y-2.2%
OM growth 5Y-2.9%
PM growth 3Y57%
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-1.8%
2. Health
2.1 Basic Checks
CARS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CARS has been reduced compared to 1 year ago.
CARS has less shares outstanding than it did 5 years ago.
CARS has a better debt/assets ratio than last year.
2.2 Solvency
CARS has an Altman-Z score of 0.45. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.45, CARS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of CARS is 3.23, which is a good value as it means it would take CARS, 3.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CARS (3.23) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
The Debt to Equity ratio of CARS (0.94) is worse than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.48
WACC9.98%
2.3 Liquidity
A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a Current ratio of 1.82. This is comparable to the rest of the industry: CARS outperforms 50.00% of its industry peers.
CARS has a Quick Ratio of 1.82. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.82, CARS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for CARS have decreased strongly by -20.69% in the last year.
The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
The Revenue has been growing slightly by 0.20% in the past year.
Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
EPS 1Y (TTM)-20.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
3.2 Future
CARS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.75% yearly.
CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-41.92%
EPS Next 2Y2.91%
EPS Next 3Y14.75%
EPS Next 5YN/A
Revenue Next Year0.01%
Revenue Next 2Y1.62%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
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.
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
A Price/Earnings ratio of 25.91 indicates a quite expensive valuation of CARS.
CARS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (26.34), we can say CARS is valued inline with the index average.
A Price/Forward Earnings ratio of 15.63 indicates a correct valuation of CARS.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. CARS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
CARS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CARS is cheaper than 81.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 97.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.1 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The decent profitability rating of CARS may justify a higher PE ratio.
CARS's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.91%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.92
-0.19 (-1.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.36%
Inst Owner Change5.89%
Ins Owners3.83%
Ins Owner Change-2.27%
Market Cap712.94M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (42.45%)
Short Float %12.92%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.19%
Min EPS beat(2)-24.1%
Max EPS beat(2)50.47%
EPS beat(4)2
Avg EPS beat(4)-4.7%
Min EPS beat(4)-127.23%
Max EPS beat(4)82.07%
EPS beat(8)4
Avg EPS beat(8)40.66%
EPS beat(12)7
Avg EPS beat(12)143.4%
EPS beat(16)8
Avg EPS beat(16)97.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.38%
Revenue beat(12)0
Avg Revenue beat(12)-2.12%
Revenue beat(16)0
Avg Revenue beat(16)-2.03%
PT rev (1m)-0.43%
PT rev (3m)-0.14%
EPS NQ rev (1m)6.97%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)-6.46%
EPS NY rev (3m)-8.38%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 15.63 | ||
| P/S | 0.99 | ||
| P/FCF | 5.1 | ||
| P/OCF | 4.93 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)0.46
EY3.86%
EPS(NY)0.76
Fwd EY6.4%
FCF(TTM)2.34
FCFY19.59%
OCF(TTM)2.42
OCFY20.27%
SpS12.03
BVpS7.98
TBVpS-3.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.27% | ||
| ROCE | 6.11% | ||
| ROIC | 4.76% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 23.2% | ||
| OM | 8.1% | ||
| PM (TTM) | 4.16% | ||
| GM | 67.07% | ||
| FCFM | 19.41% |
ROA(3y)5.37%
ROA(5y)-11.23%
ROE(3y)12.65%
ROE(5y)-38.25%
ROIC(3y)4.71%
ROIC(5y)4.14%
ROICexc(3y)4.91%
ROICexc(5y)4.33%
ROICexgc(3y)37.49%
ROICexgc(5y)37.97%
ROCE(3y)6.04%
ROCE(5y)5.31%
ROICexgc growth 3Y-26.83%
ROICexgc growth 5Y-17.53%
ROICexc growth 3Y-0.06%
ROICexc growth 5Y15.72%
OM growth 3Y-2.2%
OM growth 5Y-2.9%
PM growth 3Y57%
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-1.8%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 4.85% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.27% | ||
| Profit Quality | 466.23% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 0.45 |
F-Score6
WACC9.98%
ROIC/WACC0.48
Cap/Depr(3y)8.31%
Cap/Depr(5y)11.71%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.95%
Profit Quality(3y)352.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-57.14%
EPS Next Y-41.92%
EPS Next 2Y2.91%
EPS Next 3Y14.75%
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year0.01%
Revenue Next 2Y1.62%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
EBIT growth 1Y19.57%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year310.92%
EBIT Next 3Y64.49%
EBIT Next 5Y35.33%
FCF growth 1Y13.74%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y12.21%
OCF growth 3Y3.39%
OCF growth 5Y8.49%
CARS.COM INC / CARS FAQ
What is the fundamental rating for CARS stock?
ChartMill assigns a fundamental rating of 4 / 10 to CARS.
What is the valuation status for CARS stock?
ChartMill assigns a valuation rating of 5 / 10 to CARS.COM INC (CARS). This can be considered as Fairly Valued.
What is the profitability of CARS stock?
CARS.COM INC (CARS) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CARS.COM INC (CARS) stock?
The Price/Earnings (PE) ratio for CARS.COM INC (CARS) is 25.91 and the Price/Book (PB) ratio is 1.49.
How sustainable is the dividend of CARS.COM INC (CARS) stock?
The dividend rating of CARS.COM INC (CARS) is 0 / 10 and the dividend payout ratio is 0%.