CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
8.305 USD
+0.06 (+0.79%)
Last: Mar 4, 2026, 11:53 AM
This CARS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
CARS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. While CARS has a great profitability rating, there are some minor concerns on its financial health. CARS is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- In the past 5 years CARS always reported a positive cash flow from operatings.
1.2 Ratios
- CARS's Return On Assets of 1.89% is in line compared to the rest of the industry. CARS outperforms 57.97% of its industry peers.
- CARS has a Return On Equity of 4.24%. This is in the better half of the industry: CARS outperforms 63.77% of its industry peers.
- 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 10.99%.
- 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
- With a decent Profit Margin value of 2.77%, CARS is doing good in the industry, outperforming 62.32% 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 8.33%, CARS is doing good in the industry, outperforming 68.12% of the companies in the same industry.
- In the last couple of years the Operating Margin of CARS has grown nicely.
- The Gross Margin of CARS (66.72%) is better than 60.87% of its industry peers.
- CARS's Gross Margin has been stable in the last couple of years.
| 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
- 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
- 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.
- 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.
- CARS has a better Debt to FCF ratio (3.06) than 69.57% 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.
- The Debt to Equity ratio of CARS (0.96) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.71
WACC6.13%
2.3 Liquidity
- A Current Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.87, CARS perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- CARS has a Quick 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'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.
- 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.
- Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
- Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 5.73% on average per year.
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.
- Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.02%
Revenue Next 3Y2.47%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. CARS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.95 indicates a quite expensive valuation of CARS.
- CARS's Price/Earnings is on the same level as the industry average.
- CARS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
- CARS is valuated reasonably with a Price/Forward Earnings ratio of 11.49.
- Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 65.22% of the companies in the same industry.
- CARS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
- 82.61% of the companies in the same industry are more expensive than CARS, based on the Enterprise Value to EBITDA ratio.
- 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 | 3.31 | ||
| 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.
- CARS's earnings are expected to grow with 64.11% in the coming years. This may justify a more expensive valuation.
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
NYSE:CARS (3/4/2026, 11:53:46 AM)
8.305
+0.06 (+0.79%)
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 Owners100.52%
Inst Owner Change-0.49%
Ins Owners3.79%
Ins Owner Change-2.01%
Market Cap487.01M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target17.12 (106.14%)
Short Float %15.08%
Short Ratio8.2
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)0.86%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-6.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 11.49 | ||
| P/S | 0.67 | ||
| P/FCF | 3.31 | ||
| P/OCF | 3.21 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.78 |
EPS(TTM)0.32
EY3.85%
EPS(NY)0.72
Fwd EY8.7%
FCF(TTM)2.51
FCFY30.26%
OCF(TTM)2.59
OCFY31.14%
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
WACC6.13%
ROIC/WACC0.71
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 Year1.71%
Revenue Next 2Y2.02%
Revenue Next 3Y2.47%
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 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%.