CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
11.15 USD
+0.08 (+0.72%)
At close:
11.15 USD
0 (0%)
After Hours:
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.
- CARS had a positive operating cash flow in the past year.
- Each year in the past 5 years CARS has been profitable.
- Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
- CARS's Return On Assets of 1.89% is in line compared to the rest of the industry. CARS outperforms 57.97% of its industry peers.
- With a decent Return On Equity value of 4.24%, CARS is doing good in the industry, outperforming 60.87% of the companies in the same industry.
- CARS's Return On Invested Capital of 4.33% is fine compared to the rest of the industry. CARS outperforms 63.77% 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 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
- Looking at the Profit Margin, with a value of 2.77%, CARS is in line with its industry, outperforming 59.42% of the companies in the same industry.
- 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 69.57% of its industry peers.
- CARS's Operating Margin has improved in the last couple of years.
- CARS's Gross Margin of 66.72% is fine compared to the rest of the industry. CARS outperforms 60.87% of its industry peers.
- In the last couple of years the Gross Margin of CARS has remained more or less at the same level.
| 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
- 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
- The number of shares outstanding for CARS has been reduced compared to 5 years ago.
- Compared to 1 year ago, CARS has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.40, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- CARS's Altman-Z score of 0.40 is on the low side compared to the rest of the industry. CARS is outperformed by 60.87% of its industry peers.
- 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 has a better Debt to FCF ratio (3.06) than 63.77% of its industry peers.
- A Debt/Equity ratio of 0.96 indicates that 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 | 0.4 |
ROIC/WACC0.65
WACC6.7%
2.3 Liquidity
- A Current Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.87, CARS is in line with its industry, outperforming 50.72% of the companies in the same 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 of 1.87. This is comparable to the rest of the industry: CARS outperforms 52.17% of 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%.
- 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
- The Earnings Per Share is expected to grow by 48.87% on average over the next years. This is a very strong growth
- CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
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
- 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. CARS Valuation Analysis
4.1 Price/Earnings Ratio
- CARS is valuated quite expensively with a Price/Earnings ratio of 34.84.
- CARS's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, CARS is valued a bit more expensive.
- CARS is valuated correctly with a Price/Forward Earnings ratio of 14.71.
- Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
- CARS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 78.26% of the companies listed 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 97.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| EV/EBITDA | 6.87 |
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.
- CARS has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CARS's earnings are expected to grow with 48.87% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y67.86%
EPS Next 3Y48.87%
5. CARS Dividend Analysis
5.1 Amount
- No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CARS Fundamentals: All Metrics, Ratios and Statistics
11.15
+0.08 (+0.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
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 Cap653.84M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.28 (28.07%)
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 | 34.84 | ||
| Fwd PE | 14.71 | ||
| P/S | 0.9 | ||
| P/FCF | 4.44 | ||
| P/OCF | 4.31 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.87 |
EPS(TTM)0.32
EY2.87%
EPS(NY)0.76
Fwd EY6.8%
FCF(TTM)2.51
FCFY22.54%
OCF(TTM)2.59
OCFY23.19%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.25
PEG (5Y)N/A
Graham Number7.617 (-31.69%)
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 | 0.4 |
F-Score6
WACC6.7%
ROIC/WACC0.65
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 34.84 and the Price/Book (PB) ratio is 1.38.
Can you provide the financial health for CARS stock?
The financial health rating of CARS.COM INC (CARS) is 4 / 10.