CARS.COM INC (CARS) Stock Fundamental Analysis
USA - NYSE:CARS - US14575E1055 - Common Stock
11.14 USD
+0.05 (+0.45%)
11.14 USD
0 (0%)
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 an average financial health and profitability rating. CARS is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years CARS 4 years were profitable.
CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CARS (3.85%) is better than 67.14% of its industry peers.
The Return On Equity of CARS (8.49%) is better than 74.29% of its industry peers.
CARS's Return On Invested Capital of 4.27% is fine compared to the rest 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 13.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 8.49% | ||
| ROIC | 4.27% |
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
With a decent Profit Margin value of 5.71%, CARS is doing good in the industry, outperforming 67.14% of the companies in the same industry.
In the last couple of years the Profit Margin of CARS has grown nicely.
With a decent Operating Margin value of 7.38%, 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.
Looking at the Gross Margin, with a value of 66.54%, CARS is in line with its industry, outperforming 55.71% of the companies in the same industry.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.38% | ||
| PM (TTM) | 5.71% | ||
| GM | 66.54% |
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.
Compared to 1 year ago, CARS has less shares outstanding
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 0.37, 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 0.37, CARS is doing worse than 60.00% of the companies in the same industry.
CARS has a debt to FCF ratio of 3.40. This is a good value and a sign of high solvency as CARS would need 3.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.40, CARS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
CARS's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. CARS is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.45
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.82, CARS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a Quick ratio of 1.82. This is comparable to the rest of the industry: CARS outperforms 50.00% 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 growth in Earnings Per Share. In the last year, the EPS has been growing by 41.38%, which is quite impressive.
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 4.35%.
Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
EPS 1Y (TTM)41.38%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%71.43%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
3.2 Future
CARS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.63% yearly.
CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y-37.9%
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
EPS Next 5YN/A
Revenue Next Year0.04%
Revenue Next 2Y1.51%
Revenue Next 3Y2%
Revenue Next 5Y2.29%
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
With a Price/Earnings ratio of 13.59, CARS is valued correctly.
71.43% of the companies in the same industry are more expensive than CARS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (25.83), we can say CARS is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.68 indicates a correct valuation of CARS.
61.43% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, CARS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaper than 84.29% of the companies 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 | 5.1 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.14
+0.05 (+0.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.23%
Inst Owner Change0.06%
Ins Owners3.73%
Ins Owner Change5.47%
Market Cap684.55M
Revenue(TTM)719.15M
Net Income(TTM)41.02M
Analysts80
Price Target17.05 (53.05%)
Short Float %12.64%
Short Ratio8
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)-38.38%
Min EPS beat(2)-127.23%
Max EPS beat(2)50.47%
EPS beat(4)3
Avg EPS beat(4)101.11%
Min EPS beat(4)-127.23%
Max EPS beat(4)399.11%
EPS beat(8)4
Avg EPS beat(8)39.89%
EPS beat(12)7
Avg EPS beat(12)133.88%
EPS beat(16)9
Avg EPS beat(16)98.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-2.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-2.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-2.13%
Revenue beat(16)0
Avg Revenue beat(16)-2.03%
PT rev (1m)0.29%
PT rev (3m)0.79%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)29.17%
EPS NY rev (1m)1.94%
EPS NY rev (3m)47.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 15.68 | ||
| P/S | 0.95 | ||
| P/FCF | 5.1 | ||
| P/OCF | 4.91 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)0.82
EY7.36%
EPS(NY)0.71
Fwd EY6.38%
FCF(TTM)2.18
FCFY19.61%
OCF(TTM)2.27
OCFY20.38%
SpS11.68
BVpS7.86
TBVpS-3.9
PEG (NY)N/A
PEG (5Y)N/A
Graham Number12.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 8.49% | ||
| ROCE | 5.48% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 19.17% | ||
| OM | 7.38% | ||
| PM (TTM) | 5.71% | ||
| GM | 66.54% | ||
| FCFM | 18.7% |
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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 5.03% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.79% | ||
| Profit Quality | 327.27% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 0.37 |
F-Score7
WACC9.57%
ROIC/WACC0.45
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)41.38%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%71.43%
EPS Next Y-37.9%
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
EPS Next 5YN/A
Revenue 1Y (TTM)4.35%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year0.04%
Revenue Next 2Y1.51%
Revenue Next 3Y2%
Revenue Next 5Y2.29%
EBIT growth 1Y2.61%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year308.82%
EBIT Next 3Y63.53%
EBIT Next 5Y35.71%
FCF growth 1Y2.63%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y-2.05%
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.
What is the valuation status for CARS stock?
ChartMill assigns a valuation rating of 5 / 10 to CARS.COM INC (CARS). This can be considered as Fairly Valued.
What is the profitability of CARS stock?
CARS.COM INC (CARS) has a profitability rating of 5 / 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 13.59 and the Price/Book (PB) ratio is 1.42.
How sustainable is the dividend of CARS.COM INC (CARS) stock?
The dividend rating of CARS.COM INC (CARS) is 0 / 10 and the dividend payout ratio is 0%.