CARS.COM INC (CARS) Fundamental Analysis & Valuation

NYSE:CARS • US14575E1055

Current stock price

7.98 USD
+0.02 (+0.25%)
Last:

This CARS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CARS Profitability Analysis

1.1 Basic Checks

  • CARS had positive earnings in the past year.
  • In the past year CARS had a positive cash flow from operations.
  • In the past 5 years CARS has always been profitable.
  • 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 2025 0 200M -200M -400M -600M

1.2 Ratios

  • The Return On Assets of CARS (1.89%) is comparable to the rest of the industry.
  • CARS's Return On Equity of 4.24% is fine compared to the rest of the industry. CARS outperforms 62.32% of its industry peers.
  • CARS has a better Return On Invested Capital (4.33%) than 66.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CARS is significantly below the industry average of 11.10%.
  • 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 RankSector 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%
CARS Yearly ROA, ROE, ROICCARS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150 -200

1.3 Margins

  • CARS has a Profit Margin of 2.77%. This is comparable 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.
  • CARS has a Operating Margin of 8.33%. This is in the better half of the industry: CARS outperforms 68.12% of its industry peers.
  • CARS's Operating Margin has improved in the last couple of years.
  • CARS has a Gross Margin of 66.72%. This is in the better half of the industry: CARS outperforms 60.87% of its industry peers.
  • CARS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CARS Yearly Profit, Operating, Gross MarginsCARS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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4

2. CARS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
  • CARS has a worse debt/assets ratio than last year.
CARS Yearly Shares OutstandingCARS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • CARS has an Altman-Z score of 0.21. 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 (0.21) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of CARS is 3.06, which is a good value as it means it would take CARS, 3.06 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of CARS (3.06) is better than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.96 indicates that CARS is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CARS (0.96) is worse than 72.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 3.06
Altman-Z 0.21
ROIC/WACC0.69
WACC6.29%
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 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • CARS has a Current Ratio of 1.87. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting 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.
  • CARS has a Quick Ratio of 1.87. 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 of 1.87. This is comparable to the rest of the industry: CARS outperforms 52.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
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 2025 50M 100M 150M 200M

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

4

3. CARS Growth Analysis

3.1 Past

  • CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.56%.
  • 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.
  • Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
  • CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.73% yearly.
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 64.11% yearly.
  • Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
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.
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 2028 0.5 1 1.5

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7

4. CARS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.94, which indicates a rather expensive current valuation of CARS.
  • CARS's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, CARS is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 11.05, the valuation of CARS can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of CARS to the average of the S&P500 Index (22.19), we can say CARS is valued rather cheaply.
Industry RankSector Rank
PE 24.94
Fwd PE 11.05
CARS Price Earnings VS Forward Price EarningsCARS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaper than 81.16% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 98.55% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.18
EV/EBITDA 5.67
CARS Per share dataCARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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.
  • CARS has a very decent profitability rating, which may justify a higher PE ratio.
  • CARS's earnings are expected to grow with 64.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y63.83%
EPS Next 3Y64.11%

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

0

5. CARS Dividend Analysis

5.1 Amount

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

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CARS Fundamentals: All Metrics, Ratios and Statistics

CARS.COM INC

NYSE:CARS (3/30/2026, 3:32:06 PM)

7.98

+0.02 (+0.25%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners99.32%
Inst Owner Change-0.49%
Ins Owners4.26%
Ins Owner Change14.79%
Market Cap467.95M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.37 (80.08%)
Short Float %15.6%
Short Ratio7.31
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)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)-16.1%
PT rev (3m)-15.38%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-18.49%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.06%
Valuation
Industry RankSector Rank
PE 24.94
Fwd PE 11.05
P/S 0.65
P/FCF 3.18
P/OCF 3.09
P/B 0.99
P/tB N/A
EV/EBITDA 5.67
EPS(TTM)0.32
EY4.01%
EPS(NY)0.72
Fwd EY9.05%
FCF(TTM)2.51
FCFY31.49%
OCF(TTM)2.59
OCFY32.41%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.2
PEG (5Y)N/A
Graham Number7.62
Profitability
Industry RankSector 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 RankSector 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 0.21
F-Score6
WACC6.29%
ROIC/WACC0.69
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 Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
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 Year226.08%
EBIT Next 3Y51.84%
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.


Can you provide the valuation status for CARS.COM INC?

ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.


Can you provide the profitability details for CARS.COM INC?

CARS.COM INC (CARS) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CARS stock?

The Earnings per Share (EPS) of CARS.COM INC (CARS) is expected to grow by 125.78% 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%.