CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG • US1417881091

26.96 USD
-0.55 (-2%)
At close: Feb 12, 2026
26.96 USD
0 (0%)
After Hours: 2/12/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG against 69 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making CARG a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on CARG. These ratings would make CARG suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

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.
  • Each year in the past 5 years CARG had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

  • The Return On Assets of CARG (23.01%) is better than 95.65% of its industry peers.
  • CARG's Return On Equity of 40.48% is amongst the best of the industry. CARG outperforms 98.55% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 23.46%, CARG belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
  • CARG had an Average Return On Invested Capital over the past 3 years of 8.25%. This is significantly below the industry average of 13.58%.
  • The last Return On Invested Capital (23.46%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROIC 23.46%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

  • CARG has a Profit Margin of 16.41%. This is amongst the best in the industry. CARG outperforms 81.16% of its industry peers.
  • CARG's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 22.47%, CARG belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CARG has grown nicely.
  • CARG has a Gross Margin of 88.15%. This is amongst the best in the industry. CARG outperforms 88.41% of its industry peers.
  • In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CARG is creating value.
  • Compared to 1 year ago, CARG has less shares outstanding
  • The number of shares outstanding for CARG has been reduced compared to 5 years ago.
  • There is no outstanding debt for CARG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CARG Yearly Shares OutstandingCARG Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 9.07 indicates that CARG is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of CARG (9.07) is better than 89.86% of its industry peers.
  • There is no outstanding debt for CARG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.07
ROIC/WACC2.66
WACC8.82%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.87, CARG is doing good in the industry, outperforming 75.36% of the companies in the same industry.
  • CARG has a Quick Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Quick ratio value of 2.87, CARG is doing good in the industry, outperforming 75.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.87
Quick Ratio 2.87
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 41.18%, 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 4.21%.
  • 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)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%

3.2 Future

  • CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
  • The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y30.89%
EPS Next 2Y22.52%
EPS Next 3Y21.68%
EPS Next 5Y21.55%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%

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 stable.
  • 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 2031 2 4 6

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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.48, which indicates a correct valuation of CARG.
  • 66.67% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, CARG is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.38, the valuation of CARG can be described as reasonable.
  • CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 71.01% of the companies in the same industry.
  • CARG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
Industry RankSector Rank
PE 12.48
Fwd PE 10.38
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 the industry average as 66.67% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.23
EV/EBITDA 10.38
CARG Per share dataCARG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
  • CARG has an outstanding 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 21.68% in the coming years.
PEG (NY)0.4
PEG (5Y)0.47
EPS Next 2Y22.52%
EPS Next 3Y21.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for CARG!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARGURUS INC

NASDAQ:CARG (2/12/2026, 8:00:02 PM)

After market: 26.96 0 (0%)

26.96

-0.55 (-2%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners107.52%
Inst Owner Change-0.73%
Ins Owners2.03%
Ins Owner Change-0.81%
Market Cap2.57B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.69 (54.64%)
Short Float %5.79%
Short Ratio5.53
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.56%
Min EPS beat(2)2.1%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.4%
Min EPS beat(4)2.1%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.61%
EPS beat(12)12
Avg EPS beat(12)22.55%
EPS beat(16)15
Avg EPS beat(16)18.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)0.05%
Revenue beat(16)5
Avg Revenue beat(16)0.86%
PT rev (1m)0.82%
PT rev (3m)2.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 12.48
Fwd PE 10.38
P/S 2.78
P/FCF 10.23
P/OCF 8.94
P/B 6.85
P/tB 7.49
EV/EBITDA 10.38
EPS(TTM)2.16
EY8.01%
EPS(NY)2.6
Fwd EY9.63%
FCF(TTM)2.64
FCFY9.78%
OCF(TTM)3.02
OCFY11.19%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.4
PEG (5Y)0.47
Graham Number13.83
Profitability
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROCE 36.74%
ROIC 23.46%
ROICexc 34.28%
ROICexgc 37.36%
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
FCFM 27.15%
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%
ROICexgc growth 3Y-17.23%
ROICexgc 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 Turnover1.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 131.49%
Cap/Sales 3.92%
Interest Coverage 319.79
Cash Conversion 122.09%
Profit Quality 165.52%
Current Ratio 2.87
Quick Ratio 2.87
Altman-Z 9.07
F-Score8
WACC8.82%
ROIC/WACC2.66
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)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
EPS Next Y30.89%
EPS Next 2Y22.52%
EPS Next 3Y21.68%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.7%
EBIT Next 3Y19.22%
EBIT Next 5Y14.24%
FCF growth 1Y31.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y32.49%
OCF growth 3Y37.49%
OCF growth 5Y29.52%

CARGURUS INC / CARG FAQ

What is the ChartMill fundamental rating of CARGURUS INC (CARG) stock?

ChartMill assigns a fundamental rating of 7 / 10 to CARG.


What is the valuation status for CARG stock?

ChartMill assigns a valuation rating of 8 / 10 to CARGURUS INC (CARG). This can be considered as Undervalued.


How profitable is CARGURUS INC (CARG) stock?

CARGURUS INC (CARG) has a profitability rating of 8 / 10.


What is the valuation of CARGURUS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 12.48 and the Price/Book (PB) ratio is 6.85.