CARS.COM INC (CARS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CARS • US14575E1055
10.95 USD
-0.19 (-1.71%)
At close: Feb 11, 2026
10.95 USD
0 (0%)
After Hours: 2/11/2026, 8:09:55 PM
Overall CARS gets a fundamental rating of 4 out of 10. We evaluated CARS against 69 industry peers in the Interactive Media & Services industry. CARS has an average financial health and profitability rating. 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.
- CARS had positive earnings in 4 of the past 5 years.
- In the past 5 years CARS always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 2.80%, CARS is doing good in the industry, outperforming 66.67% 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.
- CARS has a better Return On Invested Capital (4.76%) than 69.57% of its industry peers.
- CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 13.58%.
- 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 63.77% of its industry peers.
- In the last couple of years the Profit Margin of CARS has grown nicely.
- CARS has a Operating Margin of 8.10%. This is in the better half of the industry: CARS outperforms 66.67% of its industry peers.
- CARS's Operating Margin has declined in the last couple of years.
- CARS has a better Gross Margin (67.07%) than 60.87% of its industry peers.
- In the last couple of years the Gross Margin of CARS has declined.
| 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
- CARS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for CARS has been reduced compared to a year ago.
2.2 Solvency
- CARS has an Altman-Z score of 0.38. 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 0.38. This is in the lower half of the industry: CARS underperforms 60.87% of 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.
- CARS has a better Debt to FCF ratio (3.23) 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.
- The Debt to Equity ratio of CARS (0.94) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.7
WACC6.75%
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 has a Current ratio (1.82) which is comparable to the rest of the 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.
- CARS has a Quick ratio of 1.82. This is comparable to the rest of the industry: CARS outperforms 49.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.69%.
- The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
- The Revenue has been growing slightly by 0.20% in the past year.
- CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
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.
- 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-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
- 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
- Based on the Price/Earnings ratio of 23.80, the valuation of CARS can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as CARS.
- The average S&P500 Price/Earnings ratio is at 28.18. CARS is around the same levels.
- The Price/Forward Earnings ratio is 14.74, which indicates a correct valuation of CARS.
- 60.87% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
- CARS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 14.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CARS is valued a bit cheaper than 78.26% of the companies in the same industry.
- CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 97.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 6.64 |
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%
5. Dividend
5.1 Amount
- No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.95
-0.19 (-1.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-19 2026-02-19/amc
Inst Owners100.52%
Inst Owner Change-3.81%
Ins Owners3.79%
Ins Owner Change-2.01%
Market Cap654.92M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target17.12 (56.35%)
Short Float %11.68%
Short Ratio8.37
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)0.86%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 14.74 | ||
| P/S | 0.91 | ||
| P/FCF | 4.69 | ||
| P/OCF | 4.53 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)0.46
EY4.2%
EPS(NY)0.74
Fwd EY6.78%
FCF(TTM)2.34
FCFY21.33%
OCF(TTM)2.42
OCFY22.07%
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 | 0.38 |
F-Score6
WACC6.75%
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-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%.