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CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock - Currency: USD

31.85  +0.14 (+0.44%)

After market: 31.85 0 (0%)

Fundamental Rating

7

Taking everything into account, CARG scores 7 out of 10 in our fundamental rating. CARG was compared to 70 industry peers in the Interactive Media & Services industry. CARG gets an excellent profitability rating and is at the same time showing great financial health properties. CARG has a decent growth rate and is not valued too expensively. These ratings could make CARG a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

CARG had positive earnings in the past year.
In the past year CARG had a positive cash flow from operations.
CARG had positive earnings in 4 of the past 5 years.
CARG had a positive operating cash flow in each of the past 5 years.
CARG Yearly Net Income VS EBIT VS OCF VS FCFCARG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

CARG's Return On Assets of 5.62% is fine compared to the rest of the industry. CARG outperforms 77.14% of its industry peers.
The Return On Equity of CARG (9.63%) is better than 85.71% of its industry peers.
CARG's Return On Invested Capital of 19.02% is amongst the best of the industry. CARG outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARG is below the industry average of 11.30%.
The 3 year average ROIC (8.25%) for CARG is below the current ROIC(19.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.62%
ROE 9.63%
ROIC 19.02%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)8.25%
ROIC(5y)10.3%
CARG Yearly ROA, ROE, ROICCARG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

CARG has a better Profit Margin (4.28%) than 65.71% of its industry peers.
CARG's Profit Margin has declined in the last couple of years.
CARG's Operating Margin of 19.60% is amongst the best of the industry. CARG outperforms 84.29% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
The Gross Margin of CARG (85.58%) is better than 84.29% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 19.6%
PM (TTM) 4.28%
GM 85.58%
OM growth 3Y4.23%
OM growth 5Y24.82%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.61%
GM growth 5Y-2.25%
CARG Yearly Profit, Operating, Gross MarginsCARG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CARG is creating value.
The number of shares outstanding for CARG has been reduced compared to 1 year ago.
The number of shares outstanding for CARG has been reduced compared to 5 years ago.
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CARG Yearly Shares OutstandingCARG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
CARG Yearly Total Debt VS Total AssetsCARG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 9.82 indicates that CARG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.82, CARG belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.82
ROIC/WACC2.1
WACC9.07%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.67 indicates that CARG has no problem at all paying its short term obligations.
CARG has a better Current ratio (2.67) than 64.29% of its industry peers.
CARG has a Quick Ratio of 2.66. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG has a Quick ratio of 2.66. This is in the better half of the industry: CARG outperforms 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 2.67
Quick Ratio 2.66
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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6

3. Growth

3.1 Past

CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.85%, which is quite impressive.
The Earnings Per Share has been growing by 26.69% on average over the past years. This is a very strong growth
CARG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
Measured over the past years, CARG shows a quite strong growth in Revenue. The Revenue has been growing by 8.72% on average per year.
EPS 1Y (TTM)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%

3.2 Future

Based on estimates for the next years, CARG will show a very strong growth in Earnings Per Share. The EPS will grow by 28.92% on average per year.
The Revenue is expected to grow by 6.68% on average over the next years.
EPS Next Y21.72%
EPS Next 2Y20.11%
EPS Next 3Y21.51%
EPS Next 5Y28.92%
Revenue Next Year4.81%
Revenue Next 2Y6.34%
Revenue Next 3Y6.41%
Revenue Next 5Y6.68%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
CARG Yearly Revenue VS EstimatesCARG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
CARG Yearly EPS VS EstimatesCARG Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

CARG is valuated rather expensively with a Price/Earnings ratio of 17.03.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.17, CARG is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.76 indicates a correct valuation of CARG.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 72.86% of the companies in the same industry.
CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
Industry RankSector Rank
PE 17.03
Fwd PE 12.76
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.44
EV/EBITDA 14.76
CARG Per share dataCARG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

CARG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CARG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CARG's earnings are expected to grow with 21.51% in the coming years.
PEG (NY)0.78
PEG (5Y)0.64
EPS Next 2Y20.11%
EPS Next 3Y21.51%

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0

5. Dividend

5.1 Amount

CARG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CARGURUS INC

NASDAQ:CARG (5/28/2025, 8:23:08 PM)

After market: 31.85 0 (0%)

31.85

+0.14 (+0.44%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners97.1%
Inst Owner Change2.17%
Ins Owners1.89%
Ins Owner Change-0.95%
Market Cap3.15B
Analysts81.05
Price Target38.12 (19.69%)
Short Float %8.85%
Short Ratio5.42
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.23%
Min EPS beat(2)3.76%
Max EPS beat(2)4.7%
EPS beat(4)4
Avg EPS beat(4)8.16%
Min EPS beat(4)3.76%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)12.08%
EPS beat(12)11
Avg EPS beat(12)20.59%
EPS beat(16)15
Avg EPS beat(16)22.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-2.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)1.76%
PT rev (1m)-3.31%
PT rev (3m)-6.83%
EPS NQ rev (1m)14.47%
EPS NQ rev (3m)16.04%
EPS NY rev (1m)8.51%
EPS NY rev (3m)9.11%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-4.27%
Valuation
Industry RankSector Rank
PE 17.03
Fwd PE 12.76
P/S 3.48
P/FCF 15.44
P/OCF 11.6
P/B 7.83
P/tB 9.15
EV/EBITDA 14.76
EPS(TTM)1.87
EY5.87%
EPS(NY)2.5
Fwd EY7.84%
FCF(TTM)2.06
FCFY6.48%
OCF(TTM)2.75
OCFY8.62%
SpS9.14
BVpS4.07
TBVpS3.48
PEG (NY)0.78
PEG (5Y)0.64
Profitability
Industry RankSector Rank
ROA 5.62%
ROE 9.63%
ROCE 29.79%
ROIC 19.02%
ROICexc 26.82%
ROICexgc 31.1%
OM 19.6%
PM (TTM) 4.28%
GM 85.58%
FCFM 22.57%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.77%
ROE(5y)11.21%
ROIC(3y)8.25%
ROIC(5y)10.3%
ROICexc(3y)15.71%
ROICexc(5y)22.33%
ROICexgc(3y)26.91%
ROICexgc(5y)37.61%
ROCE(3y)12.91%
ROCE(5y)16.13%
ROICexcg growth 3Y-17.23%
ROICexcg growth 5Y9.97%
ROICexc growth 3Y3.02%
ROICexc growth 5Y9.8%
OM growth 3Y4.23%
OM growth 5Y24.82%
PM growth 3YN/A
PM growth 5Y-19.98%
GM growth 3Y6.61%
GM growth 5Y-2.25%
F-Score8
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 276.06%
Cap/Sales 7.46%
Interest Coverage 267.17
Cash Conversion 134.65%
Profit Quality 526.81%
Current Ratio 2.67
Quick Ratio 2.66
Altman-Z 9.82
F-Score8
WACC9.07%
ROIC/WACC2.1
Cap/Depr(3y)164.56%
Cap/Depr(5y)118.87%
Cap/Sales(3y)5.35%
Cap/Sales(5y)3.78%
Profit Quality(3y)387.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
EPS Next Y21.72%
EPS Next 2Y20.11%
EPS Next 3Y21.51%
EPS Next 5Y28.92%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%
Revenue Next Year4.81%
Revenue Next 2Y6.34%
Revenue Next 3Y6.41%
Revenue Next 5Y6.68%
EBIT growth 1Y295.22%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year30.68%
EBIT Next 3Y18.43%
EBIT Next 5Y18.11%
FCF growth 1Y-2.78%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y18.36%
OCF growth 3Y37.49%
OCF growth 5Y29.52%