CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
8.3 USD
+0.04 (+0.48%)
At close:
8.3 USD
0 (0%)
After Hours:
This CARS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CARS Profitability Analysis
1.1 Basic Checks
- CARS had positive earnings in the past year.
- CARS had a positive operating cash flow in the past year.
- CARS had positive earnings in each of the past 5 years.
- CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CARS has a Return On Assets (1.89%) which is in line with its industry peers.
- CARS's Return On Equity of 4.24% is fine compared to the rest of the industry. CARS outperforms 62.32% of its industry peers.
- CARS has a Return On Invested Capital of 4.33%. This is in the better half of the industry: CARS outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CARS is significantly below the industry average of 11.10%.
- The 3 year average ROIC (3.91%) for CARS is below the current ROIC(4.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.24% | ||
| ROIC | 4.33% |
ROA(3y)5.44%
ROA(5y)3.81%
ROE(3y)12.58%
ROE(5y)8.98%
ROIC(3y)3.91%
ROIC(5y)4.08%
1.3 Margins
- CARS has a Profit Margin of 2.77%. This is in the better half of the industry: CARS outperforms 60.87% of its industry peers.
- In the last couple of years the Profit Margin of CARS has grown nicely.
- CARS has a Operating Margin of 8.33%. This is in the better half of the industry: CARS outperforms 68.12% of its industry peers.
- In the last couple of years the Operating Margin of CARS has grown nicely.
- CARS's Gross Margin of 66.72% is fine compared to the rest of the industry. CARS outperforms 60.87% of its industry peers.
- In the last couple of years the Gross Margin of CARS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 2.77% | ||
| GM | 66.72% |
OM growth 3Y-6.67%
OM growth 5Y9.03%
PM growth 3Y1.77%
PM growth 5YN/A
GM growth 3Y-1.02%
GM growth 5Y-1.06%
2. CARS Health Analysis
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.
- Compared to 1 year ago, CARS has less shares outstanding
- Compared to 5 years ago, CARS has less shares outstanding
- CARS has a worse debt/assets ratio than last year.
2.2 Solvency
- CARS has an Altman-Z score of 0.23. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of CARS (0.23) is comparable to the rest of the industry.
- The Debt to FCF ratio of CARS is 3.06, which is a good value as it means it would take CARS, 3.06 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.06, CARS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.96 indicates that CARS is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.96, CARS is not doing good in the industry: 72.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.69
WACC6.29%
2.3 Liquidity
- CARS has a Current Ratio of 1.87. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting its short term obligations.
- CARS has a Current ratio of 1.87. This is comparable to the rest of the industry: CARS outperforms 52.17% of its industry peers.
- A Quick Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- CARS has a Quick ratio (1.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. CARS Growth Analysis
3.1 Past
- CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.56%.
- Measured over the past years, CARS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.85% on average per year.
- The Revenue has been growing slightly by 0.57% in the past year.
- CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.73% yearly.
EPS 1Y (TTM)-55.56%
EPS 3Y-23.93%
EPS 5Y-20.85%
EPS Q2Q%-53.85%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y3.42%
Revenue growth 5Y5.73%
Sales Q2Q%1.92%
3.2 Future
- CARS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.11% yearly.
- CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.23%
Revenue Next 5Y2.7%
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.
- 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. CARS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.94 indicates a quite expensive valuation of CARS.
- The rest of the industry has a similar Price/Earnings ratio as CARS.
- CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
- A Price/Forward Earnings ratio of 11.49 indicates a reasonable valuation of CARS.
- CARS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 69.57% of the companies in the same industry.
- CARS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 81.16% of the companies listed in the same industry.
- CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 98.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.3 | ||
| EV/EBITDA | 5.78 |
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.
- The decent profitability rating of CARS may justify a higher PE ratio.
- A more expensive valuation may be justified as CARS's earnings are expected to grow with 64.11% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y63.83%
EPS Next 3Y64.11%
5. CARS Dividend Analysis
5.1 Amount
- No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CARS Fundamentals: All Metrics, Ratios and Statistics
8.3
+0.04 (+0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners99.32%
Inst Owner Change-0.49%
Ins Owners4.26%
Ins Owner Change14.79%
Market Cap486.71M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.37 (73.13%)
Short Float %18.5%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.11%
Min EPS beat(2)-46.11%
Max EPS beat(2)-24.1%
EPS beat(4)1
Avg EPS beat(4)-36.74%
Min EPS beat(4)-127.23%
Max EPS beat(4)50.47%
EPS beat(8)4
Avg EPS beat(8)38.2%
EPS beat(12)6
Avg EPS beat(12)134.85%
EPS beat(16)8
Avg EPS beat(16)98.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-1.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-1.72%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.19%
Revenue beat(16)0
Avg Revenue beat(16)-2.02%
PT rev (1m)-16.1%
PT rev (3m)-15.38%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-18.49%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 11.49 | ||
| P/S | 0.67 | ||
| P/FCF | 3.3 | ||
| P/OCF | 3.21 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.78 |
EPS(TTM)0.32
EY3.86%
EPS(NY)0.72
Fwd EY8.7%
FCF(TTM)2.51
FCFY30.28%
OCF(TTM)2.59
OCFY31.16%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.21
PEG (5Y)N/A
Graham Number7.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.24% | ||
| ROCE | 6.35% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 20.69% | ||
| OM | 8.33% | ||
| PM (TTM) | 2.77% | ||
| GM | 66.72% | ||
| FCFM | 20.37% |
ROA(3y)5.44%
ROA(5y)3.81%
ROE(3y)12.58%
ROE(5y)8.98%
ROIC(3y)3.91%
ROIC(5y)4.08%
ROICexc(3y)4.11%
ROICexc(5y)4.27%
ROICexgc(3y)19.99%
ROICexgc(5y)32.47%
ROCE(3y)5.73%
ROCE(5y)5.98%
ROICexgc growth 3Y-29.55%
ROICexgc growth 5Y-3.31%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y15.91%
OM growth 3Y-6.67%
OM growth 5Y9.03%
PM growth 3Y1.77%
PM growth 5YN/A
GM growth 3Y-1.02%
GM growth 5Y-1.06%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 4.67% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.7% | ||
| Profit Quality | 734.85% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 0.23 |
F-Score6
WACC6.29%
ROIC/WACC0.69
Cap/Depr(3y)2.91%
Cap/Depr(5y)9.69%
Cap/Sales(3y)0.4%
Cap/Sales(5y)1.46%
Profit Quality(3y)386.5%
Profit Quality(5y)578.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-55.56%
EPS 3Y-23.93%
EPS 5Y-20.85%
EPS Q2Q%-53.85%
EPS Next Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y3.42%
Revenue growth 5Y5.73%
Sales Q2Q%1.92%
Revenue Next Year1.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.23%
Revenue Next 5Y2.7%
EBIT growth 1Y12.41%
EBIT growth 3Y-3.48%
EBIT growth 5Y15.27%
EBIT Next Year226.08%
EBIT Next 3Y51.84%
EBIT Next 5Y30.03%
FCF growth 1Y-1.45%
FCF growth 3Y10.64%
FCF growth 5Y3.87%
OCF growth 1Y-0.58%
OCF growth 3Y5.67%
OCF growth 5Y1.81%
CARS.COM INC / CARS Fundamental Analysis FAQ
What is the fundamental rating for CARS stock?
ChartMill assigns a fundamental rating of 5 / 10 to CARS.
What is the valuation status of CARS.COM INC (CARS) stock?
ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.
How profitable is CARS.COM INC (CARS) stock?
CARS.COM INC (CARS) has a profitability rating of 7 / 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 25.94 and the Price/Book (PB) ratio is 1.03.
Can you provide the financial health for CARS stock?
The financial health rating of CARS.COM INC (CARS) is 4 / 10.