CARS.COM INC (CARS) Stock Fundamental Analysis

NYSE:CARS • US14575E1055

11.38 USD
+0.29 (+2.61%)
At close: Feb 18, 2026
11.38 USD
0 (0%)
After Hours: 2/18/2026, 8:17:49 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

CARS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • CARS had positive earnings in the past year.
  • 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.
CARS Yearly Net Income VS EBIT VS OCF VS FCFCARS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M

1.2 Ratios

  • CARS has a better Return On Assets (2.80%) than 66.67% of its industry peers.
  • CARS has a better Return On Equity (6.27%) than 73.91% of its industry peers.
  • With a decent Return On Invested Capital value of 4.76%, CARS is doing good in the industry, outperforming 68.12% of the companies in the same industry.
  • CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 13.55%.
  • The 3 year average ROIC (4.71%) for CARS is below the current ROIC(4.76%), indicating increased profibility in the last year.
Industry RankSector 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%
CARS Yearly ROA, ROE, ROICCARS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

1.3 Margins

  • The Profit Margin of CARS (4.16%) is better than 62.32% of its industry peers.
  • CARS's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 8.10%, CARS is in the better half of the industry, outperforming 66.67% 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 of 67.07%. This is in the better half of the industry: CARS outperforms 60.87% of its industry peers.
  • CARS's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CARS Yearly Profit, Operating, Gross MarginsCARS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARS is destroying value.
  • CARS has less shares outstanding than it did 1 year ago.
  • CARS has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CARS has an improved debt to assets ratio.
CARS Yearly Shares OutstandingCARS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
CARS Yearly Total Debt VS Total AssetsCARS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • CARS has an Altman-Z score of 0.41. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
  • CARS has a Altman-Z score (0.41) which is in line with 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.
  • The Debt to FCF ratio of CARS (3.23) is better than 69.57% 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's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. CARS is outperformed by 73.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 3.23
Altman-Z 0.41
ROIC/WACC0.71
WACC6.73%
CARS Yearly LT Debt VS Equity VS FCFCARS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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.
  • With a Current ratio value of 1.82, CARS perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
  • 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.
  • The Quick ratio of CARS (1.82) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.82
CARS Yearly Current Assets VS Current LiabilitesCARS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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.
  • The Revenue has been growing slightly by 0.20% in the past year.
  • 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)-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 10.87% 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-41.92%
EPS Next 2Y1.58%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue Next Year0.03%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
Revenue Next 5Y2.25%

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.
CARS Yearly Revenue VS EstimatesCARS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
CARS Yearly EPS VS EstimatesCARS Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.74 indicates a rather expensive valuation of CARS.
  • CARS's Price/Earnings is on the same level as the industry average.
  • CARS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 15.32, the valuation of CARS can be described as correct.
  • 60.87% 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 28.16, CARS is valued a bit cheaper.
Industry RankSector Rank
PE 24.74
Fwd PE 15.32
CARS Price Earnings VS Forward Price EarningsCARS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CARS is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 92.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.87
EV/EBITDA 6.8
CARS Per share dataCARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 2Y1.58%
EPS Next 3Y10.87%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • CARS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARS.COM INC

NYSE:CARS (2/18/2026, 8:17:49 PM)

After market: 11.38 0 (0%)

11.38

+0.29 (+2.61%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners100.52%
Inst Owner Change-3.99%
Ins Owners3.79%
Ins Owner Change-2.01%
Market Cap680.64M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target17.12 (50.44%)
Short Float %12.55%
Short Ratio8.43
Dividend
Industry RankSector 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)0.86%
PT rev (3m)0.43%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)7.38%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-6.46%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.01%
Valuation
Industry RankSector Rank
PE 24.74
Fwd PE 15.32
P/S 0.95
P/FCF 4.87
P/OCF 4.71
P/B 1.43
P/tB N/A
EV/EBITDA 6.8
EPS(TTM)0.46
EY4.04%
EPS(NY)0.74
Fwd EY6.53%
FCF(TTM)2.34
FCFY20.52%
OCF(TTM)2.42
OCFY21.23%
SpS12.03
BVpS7.98
TBVpS-3.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.09
Profitability
Industry RankSector 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 RankSector 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 0.41
F-Score6
WACC6.73%
ROIC/WACC0.71
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-41.92%
EPS Next 2Y1.58%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year0.03%
Revenue Next 2Y1.41%
Revenue Next 3Y1.85%
Revenue Next 5Y2.25%
EBIT growth 1Y19.57%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year311.22%
EBIT Next 3Y63.9%
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 5 / 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 -41.92% 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%.