CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
11.05 USD
+0.06 (+0.55%)
Last:
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.
- In the past year CARS had a positive cash flow from operations.
- In the past 5 years CARS has always 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 in line with its industry peers.
- The Return On Equity of CARS (4.24%) is better than 60.87% of its industry peers.
- CARS has a better Return On Invested Capital (4.33%) than 63.77% of its industry peers.
- CARS had an Average Return On Invested Capital over the past 3 years of 3.91%. This is significantly below the industry average of 10.91%.
- The 3 year average ROIC (3.91%) for CARS is below the current ROIC(4.33%), indicating increased profibility in the last year.
| 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
- With a Profit Margin value of 2.77%, CARS perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
- CARS's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 8.33%, CARS is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- CARS's Operating Margin has improved in the last couple of years.
- The Gross Margin of CARS (66.72%) is better than 60.87% of its industry peers.
- CARS's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for CARS has been reduced compared to 5 years ago.
- The debt/assets ratio for CARS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.39, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.39, CARS is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
- 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's Debt to FCF ratio of 3.06 is fine compared to the rest of the industry. CARS outperforms 63.77% of its industry peers.
- CARS has a Debt/Equity ratio of 0.96. This is a neutral value indicating CARS is somewhat dependend on debt financing.
- CARS's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. CARS is outperformed by 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.64
WACC6.73%
2.3 Liquidity
- A Current Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- CARS has a Current ratio (1.87) which is comparable to the rest of the industry.
- A Quick Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- CARS has a Quick ratio (1.87) which is in line with its industry peers.
| 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.
- CARS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.85% yearly.
- CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
- Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 5.73% on average per year.
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.
- The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y136.94%
EPS Next 2Y67.86%
EPS Next 3Y48.87%
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y1.82%
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
- A Price/Earnings ratio of 34.53 indicates a quite expensive valuation of CARS.
- Compared to the rest of the industry, the Price/Earnings ratio of CARS is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 26.77, CARS is valued a bit more expensive.
- A Price/Forward Earnings ratio of 14.57 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 63.77% of the companies listed in the same industry.
- CARS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.53 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
- 78.26% of the companies in the same industry are more expensive than CARS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CARS is valued cheaper than 97.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.4 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
- The 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)0.25
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
NYSE:CARS (5/1/2026, 11:21:44 AM)
11.05
+0.06 (+0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength14.29
Industry Growth73.91
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners99.46%
Inst Owner Change-0.28%
Ins Owners5.13%
Ins Owner Change15.51%
Market Cap647.97M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.28 (29.23%)
Short Float %15.03%
Short Ratio4.25
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)15.74%
EPS NQ rev (3m)-5.66%
EPS NY rev (1m)4.94%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.53 | ||
| Fwd PE | 14.57 | ||
| P/S | 0.9 | ||
| P/FCF | 4.4 | ||
| P/OCF | 4.27 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)0.32
EY2.9%
EPS(NY)0.76
Fwd EY6.86%
FCF(TTM)2.51
FCFY22.74%
OCF(TTM)2.59
OCFY23.4%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.25
PEG (5Y)N/A
Graham Number7.617 (-31.07%)
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 | 0.39 |
F-Score6
WACC6.73%
ROIC/WACC0.64
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 Year1.07%
Revenue Next 2Y1.82%
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 6 / 10 to CARS.COM INC (CARS). This can be considered as Fairly Valued.
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 34.53 and the Price/Book (PB) ratio is 1.37.
Can you provide the financial health for CARS stock?
The financial health rating of CARS.COM INC (CARS) is 4 / 10.