CARS.COM INC (CARS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CARS • US14575E1055

11.14 USD
+0.12 (+1.09%)
At close: Feb 6, 2026
11.14 USD
0 (0%)
After Hours: 2/6/2026, 7:22:15 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CARS. CARS was compared to 69 industry peers in the Interactive Media & Services industry. CARS has an average financial health and profitability rating. CARS is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

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.
  • 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

  • With a decent Return On Assets value of 2.80%, CARS is doing good in the industry, outperforming 68.12% of the companies in the same industry.
  • CARS has a Return On Equity of 6.27%. This is in the better half of the industry: CARS outperforms 73.91% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.76%, CARS is in the better half of the industry, outperforming 69.57% 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 13.43%.
  • 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

  • Looking at the Profit Margin, with a value of 4.16%, CARS is in the better half of the industry, outperforming 63.77% 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 8.10%, CARS is doing good in 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.
  • With a Gross Margin value of 67.07%, CARS perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CARS has declined.
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

4

2. Health

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
  • CARS has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CARS has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of 0.38, we must say that CARS is in the distress zone and has some risk of bankruptcy.
  • CARS's Altman-Z score of 0.38 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 3.23. This is a good value and a sign of high solvency as CARS would need 3.23 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.23, CARS is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
  • A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CARS (0.94) is worse than 73.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 3.23
Altman-Z 0.38
ROIC/WACC0.7
WACC6.8%
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

  • A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
  • CARS has a Current ratio (1.82) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.82, CARS is in line with its industry, outperforming 49.28% of the companies in the same 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.
  • The Revenue has been growing slightly by 3.46% on average over the past years.
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

  • Based on estimates for the next years, CARS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
  • Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-42.2%
EPS Next 2Y1.69%
EPS Next 3Y11.84%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 24.22 indicates a rather expensive valuation of CARS.
  • Based on the Price/Earnings ratio, CARS is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (27.92), we can say CARS is valued inline with the index average.
  • CARS is valuated correctly with a Price/Forward Earnings ratio of 14.96.
  • Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 62.32% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, CARS is valued a bit cheaper.
Industry RankSector Rank
PE 24.22
Fwd PE 14.96
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

  • 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.
  • Based on the Price/Free Cash Flow ratio, CARS is valued cheaper than 98.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.77
EV/EBITDA 6.66
CARS Per share dataCARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

  • CARS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.69%
EPS Next 3Y11.84%

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 (2/6/2026, 7:22:15 PM)

After market: 11.14 0 (0%)

11.14

+0.12 (+1.09%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners100.52%
Inst Owner Change-2.63%
Ins Owners3.79%
Ins Owner Change-2.46%
Market Cap666.28M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (52.42%)
Short Float %11.68%
Short Ratio8.37
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%
PT rev (3m)-0.43%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.01%
Valuation
Industry RankSector Rank
PE 24.22
Fwd PE 14.96
P/S 0.93
P/FCF 4.77
P/OCF 4.61
P/B 1.4
P/tB N/A
EV/EBITDA 6.66
EPS(TTM)0.46
EY4.13%
EPS(NY)0.74
Fwd EY6.68%
FCF(TTM)2.34
FCFY20.96%
OCF(TTM)2.42
OCFY21.69%
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 0.38
F-Score6
WACC6.8%
ROIC/WACC0.7
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-42.2%
EPS Next 2Y1.69%
EPS Next 3Y11.84%
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 4 / 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 -42.2% 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%.