CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
12.2 USD
+0.02 (+0.16%)
12.2 USD
0 (0%)
CARS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 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 it does not seem to be growing.
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.
Of the past 5 years CARS 4 years were profitable.
Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.80%, CARS is in the better half of the industry, outperforming 68.57% 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 74.29% 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 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARS is significantly below the industry average of 13.70%.
The 3 year average ROIC (4.71%) for CARS is below the current ROIC(4.76%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
CARS's Profit Margin of 4.16% is fine compared to the rest of the industry. CARS outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of CARS has grown nicely.
CARS's Operating Margin of 8.10% is fine compared to the rest of the industry. CARS outperforms 67.14% of its industry peers.
CARS's Operating Margin has declined in the last couple of years.
CARS has a Gross Margin of 67.07%. This is comparable to the rest of the industry: CARS outperforms 58.57% of its industry peers.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARS is destroying value.
The number of shares outstanding for CARS has been reduced compared to 1 year ago.
Compared to 5 years ago, CARS has less shares outstanding
Compared to 1 year ago, CARS has an improved debt to assets ratio.
2.2 Solvency
CARS has an Altman-Z score of 0.46. 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 of 0.46. This is comparable to the rest of the industry: CARS outperforms 42.86% 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.
With a decent Debt to FCF ratio value of 3.23, CARS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CARS has a Debt/Equity ratio of 0.94. This is a neutral value indicating CARS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, CARS is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.48
WACC9.82%
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.
CARS's Current ratio of 1.82 is in line compared to the rest of the industry. CARS outperforms 51.43% of its industry peers.
A Quick Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, CARS perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for CARS have decreased strongly by -20.69% in the last year.
Measured over the past years, CARS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.33% on average per year.
CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
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
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.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-42.2%
EPS Next 2Y1.69%
EPS Next 3Y11.84%
EPS Next 5YN/A
Revenue Next Year0.01%
Revenue Next 2Y1.58%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.52, CARS can be considered very expensive at the moment.
CARS's Price/Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 61.43% of the companies in the same industry.
CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
CARS is valuated correctly with a Price/Forward Earnings ratio of 16.38.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CARS to the average of the S&P500 Index (23.13), we can say CARS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
81.43% 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 98.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 7.11 |
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%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.2
+0.02 (+0.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.36%
Inst Owner Change5.89%
Ins Owners3.83%
Ins Owner Change-2.64%
Market Cap729.68M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (39.18%)
Short Float %13.51%
Short Ratio7.84
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)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)-0.85%
PT rev (3m)-0.14%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)3.88%
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 16.38 | ||
| P/S | 1.01 | ||
| P/FCF | 5.22 | ||
| P/OCF | 5.05 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)0.46
EY3.77%
EPS(NY)0.74
Fwd EY6.1%
FCF(TTM)2.34
FCFY19.14%
OCF(TTM)2.42
OCFY19.81%
SpS12.03
BVpS7.98
TBVpS-3.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.46 |
F-Score6
WACC9.82%
ROIC/WACC0.48
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 Year0.01%
Revenue Next 2Y1.58%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
EBIT growth 1Y19.57%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year310.92%
EBIT Next 3Y64.49%
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 -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%.