CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
12.03 USD
+0.01 (+0.08%)
11.96 USD
-0.07 (-0.58%)
We assign a fundamental rating of 4 out of 10 to CARS. CARS was compared to 70 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS is valued correctly, 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.
- CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.80%, CARS is doing good in the industry, outperforming 68.57% of the companies in the same industry.
- The Return On Equity of CARS (6.27%) is better than 74.29% of its industry peers.
- CARS has a better Return On Invested Capital (4.76%) than 70.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CARS 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 has a better Profit Margin (4.16%) than 64.29% of its industry peers.
- CARS's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 8.10%, CARS is doing good in the industry, outperforming 67.14% 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 (67.07%) which is comparable to the rest of the industry.
- 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.
- Compared to 5 years ago, CARS has less shares outstanding
- CARS has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.44, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- CARS has a Altman-Z score of 0.44. This is in the lower half of the industry: CARS underperforms 61.43% 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.
- A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.94, CARS is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.44 |
ROIC/WACC0.69
WACC6.86%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
- CARS has a Current ratio of 1.82. This is comparable to the rest of the industry: CARS outperforms 51.43% of its industry peers.
- A Quick Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
- CARS's Quick ratio of 1.82 is in line compared to the rest of the industry. CARS outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.69%.
- The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
- Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.20% in the last year.
- The Revenue has been growing slightly by 3.46% on average over the past years.
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
- The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.25% on average over the next years.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- CARS is valuated quite expensively with a Price/Earnings ratio of 26.15.
- Based on the Price/Earnings ratio, CARS is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.54. CARS is around the same levels.
- A Price/Forward Earnings ratio of 16.16 indicates a correct valuation of CARS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 64.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, CARS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
- 81.43% of the companies in the same industry are more expensive than CARS, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 98.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 7.04 |
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% |
12.03
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners100.52%
Inst Owner Change0.09%
Ins Owners3.79%
Ins Owner Change-2.46%
Market Cap719.51M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (41.15%)
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 | 26.15 | ||
| Fwd PE | 16.16 | ||
| P/S | 1 | ||
| P/FCF | 5.15 | ||
| P/OCF | 4.98 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.04 |
EPS(TTM)0.46
EY3.82%
EPS(NY)0.74
Fwd EY6.19%
FCF(TTM)2.34
FCFY19.41%
OCF(TTM)2.42
OCFY20.09%
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 | 0.44 |
F-Score6
WACC6.86%
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%.