CARS.COM INC (CARS) Stock Fundamental Analysis
NYSE:CARS - New York Stock Exchange, Inc. - US14575E1055 - Common Stock - Currency: USD
Overall CARS gets a fundamental rating of 4 out of 10. We evaluated CARS against 70 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. 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.
In the past year CARS had a positive cash flow from operations.
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's Return On Assets of 4.19% is fine compared to the rest of the industry. CARS outperforms 68.57% of its industry peers.
CARS's Return On Equity of 9.27% is fine compared to the rest of the industry. CARS outperforms 78.57% of its industry peers.
CARS has a Return On Invested Capital of 3.78%. This is in the better half of the industry: CARS outperforms 70.00% of its industry peers.
CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROIC | 3.78% |
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
The Profit Margin of CARS (6.32%) is better than 74.29% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.58%, CARS is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CARS has declined.
CARS has a Gross Margin (66.62%) which is in line with its industry peers.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% |
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
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.
Compared to 5 years ago, CARS has less shares outstanding
The debt/assets ratio for CARS has been reduced compared to a year ago.
2.2 Solvency
CARS has an Altman-Z score of 0.45. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
CARS's Altman-Z score of 0.45 is on the low side compared to the rest of the industry. CARS is outperformed by 60.00% of its industry peers.
The Debt to FCF ratio of CARS is 3.13, which is a good value as it means it would take CARS, 3.13 years of fcf income to pay off all of its debts.
CARS has a better Debt to FCF ratio (3.13) than 65.71% of its industry peers.
CARS has a Debt/Equity ratio of 0.93. This is a neutral value indicating CARS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, CARS is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.43
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.65 indicates that CARS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.65, CARS is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
A Quick Ratio of 1.65 indicates that CARS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.65, CARS is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The earnings per share for CARS have decreased strongly by -56.69% in the last year.
The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
EPS 1Y (TTM)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 11.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y-14.65%
EPS Next 2Y-7.61%
EPS Next 3Y11.75%
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y1.94%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.50, which indicates a rather expensive current valuation of CARS.
CARS's Price/Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CARS is valued a bit cheaper.
The Price/Forward Earnings ratio is 20.47, which indicates a rather expensive current valuation of CARS.
61.43% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
CARS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
CARS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CARS is cheaper than 82.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 97.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.61%
EPS Next 3Y11.75%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.58
-0.16 (-1.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.79%
Inst Owner Change0%
Ins Owners3.48%
Ins Owner Change21.57%
Market Cap791.16M
Analysts78.46
Price Target16.92 (34.5%)
Short Float %7.28%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-22.58%
Min EPS beat(2)-127.23%
Max EPS beat(2)82.07%
EPS beat(4)3
Avg EPS beat(4)103.55%
Min EPS beat(4)-127.23%
Max EPS beat(4)399.11%
EPS beat(8)4
Avg EPS beat(8)182.52%
EPS beat(12)7
Avg EPS beat(12)136.4%
EPS beat(16)9
Avg EPS beat(16)96.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-2.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.31%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.9%
PT rev (1m)-10.36%
PT rev (3m)-11.95%
EPS NQ rev (1m)-54.07%
EPS NQ rev (3m)-62.99%
EPS NY rev (1m)-19.67%
EPS NY rev (3m)-24.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 20.47 | ||
| P/S | 1.1 | ||
| P/FCF | 5.44 | ||
| P/OCF | 5.33 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)0.68
EY5.41%
EPS(NY)0.61
Fwd EY4.89%
FCF(TTM)2.31
FCFY18.38%
OCF(TTM)2.36
OCFY18.77%
SpS11.42
BVpS7.79
TBVpS-3.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROCE | 4.85% | ||
| ROIC | 3.78% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 17.94% | ||
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% | ||
| FCFM | 20.25% |
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%
ROICexcg growth 3Y-26.83%
ROICexcg 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 2.9% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.39% | ||
| Profit Quality | 320.35% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 0.45 |
F-Score6
WACC8.77%
ROIC/WACC0.43
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)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
EPS Next Y-14.65%
EPS Next 2Y-7.61%
EPS Next 3Y11.75%
EPS Next 5YN/A
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
Revenue Next Year0.2%
Revenue Next 2Y1.94%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
EBIT growth 1Y-13.18%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year308.8%
EBIT Next 3Y63.74%
EBIT Next 5Y35.2%
FCF growth 1Y31.83%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y17.68%
OCF growth 3Y3.39%
OCF growth 5Y8.49%