CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
10.59 USD
+0.35 (+3.42%)
At close:
10.8466 USD
+0.26 (+2.42%)
After Hours:
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
- In the past year CARS was profitable.
- 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 has a Return On Assets (1.89%) which is comparable to the rest of the industry.
- The Return On Equity of CARS (4.24%) is better than 60.87% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.33%, CARS is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CARS is significantly below the industry average of 10.87%.
- The last Return On Invested Capital (4.33%) for CARS is above the 3 year average (3.91%), which is a sign of increasing profitability.
| 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's Profit Margin of 2.77% is in line compared 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.
- The Operating Margin of CARS (8.33%) is better than 69.57% of its industry peers.
- In the last couple of years the Operating Margin of CARS has grown nicely.
- CARS's Gross Margin of 66.72% is fine compared to the rest of the industry. CARS outperforms 60.87% of its industry peers.
- 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
- 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 worse debt/assets ratio than last year.
2.2 Solvency
- CARS has an Altman-Z score of 0.35. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.35, 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.
- CARS has a Debt to FCF ratio of 3.06. This is in the better half of the industry: CARS outperforms 66.67% of its industry peers.
- 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 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.66
WACC6.58%
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.
- With a Quick ratio value of 1.87, CARS perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
| 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.
- The Revenue has been growing slightly by 0.57% in the past year.
- 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
- CARS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.87% yearly.
- CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y136.94%
EPS Next 2Y67.86%
EPS Next 3Y48.87%
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
- The Price/Earnings ratio is 33.09, which means the current valuation is very expensive for CARS.
- The rest of the industry has a similar Price/Earnings ratio as CARS.
- CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.87.
- A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of CARS.
- 66.67% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
- CARS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
- CARS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARS is cheaper than 79.71% of the companies in the same industry.
- CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 98.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.21 | ||
| EV/EBITDA | 6.55 |
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.
- The decent profitability rating of CARS may justify a higher PE ratio.
- CARS's earnings are expected to grow with 48.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y67.86%
EPS Next 3Y48.87%
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
10.59
+0.35 (+3.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners99.46%
Inst Owner Change-0.03%
Ins Owners5.13%
Ins Owner Change15.51%
Market Cap621.00M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.28 (34.84%)
Short Float %16.02%
Short Ratio4.55
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)-16.6%
PT rev (3m)-15.88%
EPS NQ rev (1m)8.03%
EPS NQ rev (3m)-11.95%
EPS NY rev (1m)4.94%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 13.97 | ||
| P/S | 0.86 | ||
| P/FCF | 4.21 | ||
| P/OCF | 4.1 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.55 |
EPS(TTM)0.32
EY3.02%
EPS(NY)0.76
Fwd EY7.16%
FCF(TTM)2.51
FCFY23.73%
OCF(TTM)2.59
OCFY24.42%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.24
PEG (5Y)N/A
Graham Number7.617 (-28.07%)
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 | 0.35 |
F-Score6
WACC6.58%
ROIC/WACC0.66
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 Y136.94%
EPS Next 2Y67.86%
EPS Next 3Y48.87%
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 Year224.63%
EBIT Next 3Y51.55%
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.
What is the valuation status of CARS.COM INC (CARS) stock?
ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.
How profitable is CARS.COM INC (CARS) stock?
CARS.COM INC (CARS) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CARS.COM INC (CARS) stock?
The Price/Earnings (PE) ratio for CARS.COM INC (CARS) is 33.09 and the Price/Book (PB) ratio is 1.31.
Can you provide the financial health for CARS stock?
The financial health rating of CARS.COM INC (CARS) is 4 / 10.