CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
12.41 USD
-0.16 (-1.27%)
12.41 USD
0 (0%)
CARS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of CARS get a neutral evaluation. Nothing too spectacular is happening here. CARS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CARS was profitable.
CARS had a positive operating cash flow in the past year.
CARS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
CARS has a Return On Assets of 2.80%. This is in the better half of the industry: CARS outperforms 68.57% of its industry peers.
Looking at the Return On Equity, with a value of 6.27%, CARS is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.76%, CARS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 13.70%.
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
CARS's Profit Margin of 4.16% is fine compared to the rest of the industry. CARS outperforms 64.29% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
CARS has a better Operating Margin (8.10%) than 67.14% of its industry peers.
CARS's Operating Margin has declined in the last couple of years.
CARS has a Gross Margin of 67.07%. This is comparable to the rest of the industry: CARS outperforms 58.57% of its industry peers.
In the last couple of years the Gross Margin of CARS has declined.
| 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 0.48. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
CARS has a worse Altman-Z score (0.48) than 60.00% of its industry peers.
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.
CARS's Debt to FCF ratio of 3.23 is fine compared to the rest of the industry. CARS outperforms 70.00% of its industry peers.
CARS has a Debt/Equity ratio of 0.94. This is a neutral value indicating CARS is somewhat dependend on debt financing.
The Debt to Equity ratio of CARS (0.94) is worse than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.69
WACC6.91%
2.3 Liquidity
CARS has a Current 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.
Looking at the Current ratio, with a value of 1.82, CARS is in line with its industry, outperforming 51.43% of the companies in the same industry.
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 51.43% 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.
CARS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.33% yearly.
Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.20% in the last 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
Based on estimates for the next years, CARS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-42.2%
EPS Next 2Y1.69%
EPS Next 3Y11.84%
EPS Next 5YN/A
Revenue Next Year0.01%
Revenue Next 2Y1.58%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 26.98, which means the current valuation is very expensive for CARS.
61.43% of the companies in the same industry are more expensive than CARS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (27.25), we can say CARS is valued inline with the index average.
CARS is valuated correctly with a Price/Forward Earnings ratio of 16.67.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.98. CARS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 16.67 |
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.
CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 98.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.31 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
CARS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.69%
EPS Next 3Y11.84%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.41
-0.16 (-1.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.52%
Inst Owner Change0.09%
Ins Owners3.79%
Ins Owner Change-2.46%
Market Cap742.24M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (36.83%)
Short Float %13.51%
Short Ratio7.84
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)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%
PT rev (3m)-0.14%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 16.67 | ||
| P/S | 1.03 | ||
| P/FCF | 5.31 | ||
| P/OCF | 5.14 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.46
EY3.71%
EPS(NY)0.74
Fwd EY6%
FCF(TTM)2.34
FCFY18.82%
OCF(TTM)2.42
OCFY19.47%
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 | 0.48 |
F-Score6
WACC6.91%
ROIC/WACC0.69
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-42.2%
EPS Next 2Y1.69%
EPS Next 3Y11.84%
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 2Y1.58%
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.
Can you provide the valuation status for CARS.COM INC?
ChartMill assigns a valuation rating of 5 / 10 to CARS.COM INC (CARS). This can be considered as Fairly Valued.
Can you provide the profitability details for CARS.COM INC?
CARS.COM INC (CARS) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for CARS stock?
The Earnings per Share (EPS) of CARS.COM INC (CARS) is expected to decline by -42.2% in the next year.
Is the dividend of CARS.COM INC sustainable?
The dividend rating of CARS.COM INC (CARS) is 0 / 10 and the dividend payout ratio is 0%.