CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
7.9 USD
-0.26 (-3.19%)
At close:
7.88 USD
-0.02 (-0.25%)
Pre-Market:
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.
- In the past year CARS had a positive cash flow from operations.
- In the past 5 years CARS has always been profitable.
- Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
- CARS has a Return On Assets of 1.89%. This is comparable to the rest of the industry: CARS outperforms 56.52% of its industry peers.
- Looking at the Return On Equity, with a value of 4.24%, CARS is in the better half of the industry, outperforming 62.32% of the companies in the same industry.
- CARS has a better Return On Invested Capital (4.33%) than 66.67% of its industry peers.
- CARS had an Average Return On Invested Capital over the past 3 years of 3.91%. This 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 comparable to the rest of the industry: CARS outperforms 59.42% of its industry peers.
- CARS's Profit Margin has improved in the last couple of years.
- CARS has a better Operating Margin (8.33%) than 68.12% of its industry peers.
- 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 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARS is destroying value.
- The number of shares outstanding for CARS has been reduced compared to 1 year ago.
- The number of shares outstanding for CARS has been reduced compared to 5 years ago.
- CARS has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.21, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.21, CARS perfoms like the industry average, outperforming 40.58% of the companies in the same industry.
- CARS has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as CARS would need 3.06 years to pay back of 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 68.12% of the companies in the same industry.
- A Debt/Equity ratio of 0.96 indicates that CARS is somewhat dependend on debt financing.
- CARS has a worse Debt to Equity ratio (0.96) than 72.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.69
WACC6.25%
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.
- Looking at the Current ratio, with a value of 1.87, CARS is in line with its industry, outperforming 52.17% of the companies in the same industry.
- A Quick Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- CARS's Quick ratio of 1.87 is in line compared to the rest of the industry. CARS outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. CARS Growth Analysis
3.1 Past
- The earnings per share for CARS have decreased strongly by -55.56% 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 -20.85% yearly.
- CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
- 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
- Based on estimates for the next years, CARS will show a very strong growth in Earnings Per Share. The EPS will grow by 64.11% on average per year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better 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. CARS Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.69, the valuation of CARS can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of CARS is on the same level as its industry peers.
- CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.23.
- With a Price/Forward Earnings ratio of 10.93, the valuation of CARS can be described as very reasonable.
- CARS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 68.12% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, CARS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 10.93 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.14 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
- CARS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CARS has a very decent profitability rating, which may justify a higher PE ratio.
- CARS's earnings are expected to grow with 64.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y63.83%
EPS Next 3Y64.11%
5. CARS Dividend Analysis
5.1 Amount
- CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CARS Fundamentals: All Metrics, Ratios and Statistics
7.9
-0.26 (-3.19%)
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 Cap463.26M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target17.12 (116.71%)
Short Float %15.6%
Short Ratio7.31
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 10.93 | ||
| P/S | 0.64 | ||
| P/FCF | 3.14 | ||
| P/OCF | 3.05 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)0.32
EY4.05%
EPS(NY)0.72
Fwd EY9.15%
FCF(TTM)2.51
FCFY31.81%
OCF(TTM)2.59
OCFY32.73%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.2
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 | 0.21 |
F-Score6
WACC6.25%
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%.