CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
12.18 USD
-0.23 (-1.85%)
12.18 USD
0 (0%)
Taking everything into account, CARS scores 4 out of 10 in our fundamental rating. CARS was compared to 70 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of CARS get a neutral evaluation. Nothing too spectacular is happening here. CARS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CARS had positive earnings in the past year.
- 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 2.80% is fine compared to the rest of the industry. CARS outperforms 68.57% of its industry peers.
- CARS has a Return On Equity of 6.27%. This is in the better half of the industry: CARS outperforms 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 Profit Margin of 4.16%. This is in the better half of the industry: CARS outperforms 64.29% of its industry peers.
- In the last couple of years the Profit Margin of CARS has grown nicely.
- 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.
- CARS's Operating Margin has declined in the last couple of years.
- The Gross Margin of CARS (67.07%) 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
- 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
- Compared to 1 year ago, CARS has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.45, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.45, CARS is doing worse than 61.43% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (3.23) than 70.00% of its industry peers.
- CARS has a Debt/Equity ratio of 0.94. This is a neutral value indicating CARS is somewhat dependend on debt financing.
- CARS has a worse Debt to Equity ratio (0.94) than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.69
WACC6.9%
2.3 Liquidity
- CARS has a Current Ratio of 1.82. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting 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.
- CARS has a Quick Ratio of 1.82. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting its short term obligations.
- CARS has a Quick ratio (1.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The earnings per share for CARS have decreased strongly by -20.69% 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 -14.33% yearly.
- CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
- CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
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
- Based on estimates for the next years, CARS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
- Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
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
- A Price/Earnings ratio of 26.48 indicates a quite expensive valuation of CARS.
- Based on the Price/Earnings ratio, CARS is valued a bit cheaper than 61.43% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (27.30), we can say CARS is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 16.36, the valuation of CARS can be described as correct.
- Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 62.86% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CARS to the average of the S&P500 Index (24.04), we can say CARS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 82.86% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CARS is valued cheaper than 98.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
- The decent profitability rating of CARS 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% |
12.18
-0.23 (-1.85%)
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 Cap728.49M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (39.41%)
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 | 26.48 | ||
| Fwd PE | 16.36 | ||
| P/S | 1.01 | ||
| P/FCF | 5.22 | ||
| P/OCF | 5.04 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.46
EY3.78%
EPS(NY)0.74
Fwd EY6.11%
FCF(TTM)2.34
FCFY19.17%
OCF(TTM)2.42
OCFY19.84%
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 | 0.45 |
F-Score6
WACC6.9%
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%.