CARS.COM INC (CARS) Fundamental Analysis & Valuation

NYSE:CARS • US14575E1055

Current stock price

8.17 USD
-0.1 (-1.21%)
At close:
8.17 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.

7

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.
  • Each year in the past 5 years CARS has been profitable.
  • Each year in the past 5 years CARS had a positive operating cash flow.
CARS Yearly Net Income VS EBIT VS OCF VS FCFCARS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M -600M

1.2 Ratios

  • With a Return On Assets value of 1.89%, CARS perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
  • CARS has a better Return On Equity (4.24%) than 62.32% of its industry peers.
  • CARS's Return On Invested Capital of 4.33% is fine compared to the rest of the industry. CARS outperforms 66.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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 RankSector 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%
CARS Yearly ROA, ROE, ROICCARS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150 -200

1.3 Margins

  • CARS has a Profit Margin of 2.77%. This is comparable to the rest of the industry: CARS outperforms 59.42% of its industry peers.
  • In the last couple of years the Profit Margin of CARS has grown nicely.
  • Looking at the Operating Margin, with a value of 8.33%, CARS is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
  • CARS's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 66.72%, CARS is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CARS has remained more or less at the same level.
Industry RankSector 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%
CARS Yearly Profit, Operating, Gross MarginsCARS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. CARS Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARS is destroying value.
  • Compared to 1 year ago, CARS has less shares outstanding
  • The number of shares outstanding for CARS has been reduced compared to 5 years ago.
  • The debt/assets ratio for CARS is higher compared to a year ago.
CARS Yearly Shares OutstandingCARS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
CARS Yearly Total Debt VS Total AssetsCARS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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.
  • CARS has a Altman-Z score (0.23) which is in line with its industry peers.
  • 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.
  • CARS's Debt to FCF ratio of 3.06 is fine compared to the rest of the industry. CARS outperforms 66.67% of its industry peers.
  • CARS has a Debt/Equity ratio of 0.96. This is a neutral value indicating CARS is somewhat dependend on debt financing.
  • CARS has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: CARS underperforms 72.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 3.06
Altman-Z 0.23
ROIC/WACC0.69
WACC6.27%
CARS Yearly LT Debt VS Equity VS FCFCARS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
  • CARS's Current ratio of 1.87 is in line compared 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 of 1.87. This is comparable to the rest of the industry: CARS outperforms 52.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
CARS Yearly Current Assets VS Current LiabilitesCARS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CARS Growth Analysis

3.1 Past

  • The earnings per share for CARS have decreased strongly by -55.56% in the last year.
  • 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.
  • CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
  • The Revenue has been growing slightly by 5.73% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 64.11% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 2.70% on average over the next years.
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.
CARS Yearly Revenue VS EstimatesCARS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
CARS Yearly EPS VS EstimatesCARS Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

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Find the best growth stocksShow best growing peers

7

4. CARS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.53, which means the current valuation is very expensive for CARS.
  • The rest of the industry has a similar Price/Earnings ratio as CARS.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, CARS is valued at the same level.
  • CARS is valuated reasonably with a Price/Forward Earnings ratio of 11.31.
  • Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 66.67% of the companies in the same industry.
  • CARS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.53
Fwd PE 11.31
CARS Price Earnings VS Forward Price EarningsCARS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • CARS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CARS is cheaper than 81.16% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CARS is valued cheaply inside the industry as 98.55% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.25
EV/EBITDA 5.79
CARS Per share dataCARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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)0.2
PEG (5Y)N/A
EPS Next 2Y63.83%
EPS Next 3Y64.11%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CARS Dividend Analysis

5.1 Amount

  • No dividends for CARS!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CARS Fundamentals: All Metrics, Ratios and Statistics

CARS.COM INC

NYSE:CARS (3/26/2026, 8:07:58 PM)

After market: 8.17 0 (0%)

8.17

-0.1 (-1.21%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners99.32%
Inst Owner Change-0.49%
Ins Owners4.26%
Ins Owner Change14.79%
Market Cap479.09M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target17.12 (109.55%)
Short Float %15.6%
Short Ratio7.31
Dividend
Industry RankSector 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)0%
PT rev (3m)0.86%
EPS NQ rev (1m)-18.49%
EPS NQ rev (3m)-18.49%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.13%
Valuation
Industry RankSector Rank
PE 25.53
Fwd PE 11.31
P/S 0.66
P/FCF 3.25
P/OCF 3.16
P/B 1.01
P/tB N/A
EV/EBITDA 5.79
EPS(TTM)0.32
EY3.92%
EPS(NY)0.72
Fwd EY8.84%
FCF(TTM)2.51
FCFY30.76%
OCF(TTM)2.59
OCFY31.65%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.2
PEG (5Y)N/A
Graham Number7.62
Profitability
Industry RankSector 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 RankSector 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
WACC6.27%
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.


Can you provide the valuation status for CARS.COM INC?

ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.


Can you provide the profitability details for CARS.COM INC?

CARS.COM INC (CARS) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CARS stock?

The Earnings per Share (EPS) of CARS.COM INC (CARS) is expected to grow by 125.78% 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%.