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CARGURUS INC (CARG) Stock Fundamental Analysis

USA - NASDAQ:CARG - US1417881091 - Common Stock

37.34 USD
-0.23 (-0.61%)
Last: 9/19/2025, 8:00:02 PM
37.341 USD
0 (0%)
After Hours: 9/19/2025, 8:00:02 PM
Fundamental Rating

7

CARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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. This makes CARG very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year CARG was profitable.
In the past year CARG had a positive cash flow from operations.
Of the past 5 years CARG 4 years were profitable.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

CARG has a Return On Assets of 17.87%. This is amongst the best in the industry. CARG outperforms 89.86% of its industry peers.
Looking at the Return On Equity, with a value of 29.80%, CARG belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.08%, CARG belongs to the best of the industry, outperforming 89.86% 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 below the industry average of 12.98%.
The last Return On Invested Capital (20.08%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 17.87%
ROE 29.8%
ROIC 20.08%
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 Profit Margin of 14.12%. 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.
CARG has a better Operating Margin (21.51%) than 88.41% of its industry peers.
CARG's Operating Margin has improved in the last couple of years.
CARG has a Gross Margin of 86.54%. This is amongst the best in the industry. CARG outperforms 88.41% of its industry peers.
CARG's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 21.51%
PM (TTM) 14.12%
GM 86.54%
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.
Compared to 1 year ago, CARG has less shares outstanding
CARG has less shares outstanding than it did 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 10.97 indicates that CARG is not in any danger for bankruptcy at the moment.
CARG has a better Altman-Z score (10.97) than 89.86% of its industry peers.
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 10.97
ROIC/WACC2.1
WACC9.55%
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

CARG has a Current Ratio of 3.18. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG has a better Current ratio (3.18) than 73.91% of its industry peers.
CARG has a Quick Ratio of 3.17. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
CARG has a Quick ratio of 3.17. This is in the better half of the industry: CARG outperforms 73.91% of its industry peers.
Industry RankSector Rank
Current Ratio 3.18
Quick Ratio 3.17
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 42.96%, 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
The Revenue has been growing slightly by 4.80% in the past year.
The Revenue has been growing by 8.72% on average over the past years. This is quite good.
EPS 1Y (TTM)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%

3.2 Future

CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.39% yearly.
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y28.53%
EPS Next 2Y21.31%
EPS Next 3Y22.37%
EPS Next 5Y21.39%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
Revenue Next 5Y5.62%

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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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.39, the valuation of CARG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 69.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. CARG is valued slightly cheaper when compared to this.
CARG is valuated correctly with a Price/Forward Earnings ratio of 14.67.
CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 69.57% 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 22.86.
Industry RankSector Rank
PE 18.39
Fwd PE 14.67
CARG Price Earnings VS Forward Price EarningsCARG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CARG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARG is cheaper than 69.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 72.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.25
EV/EBITDA 15.56
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.
The excellent profitability rating of CARG may justify a higher PE ratio.
CARG's earnings are expected to grow with 22.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)0.69
EPS Next 2Y21.31%
EPS Next 3Y22.37%

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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 (9/19/2025, 8:00:02 PM)

After market: 37.341 0 (0%)

37.34

-0.23 (-0.61%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners104.52%
Inst Owner Change-2.22%
Ins Owners2.24%
Ins Owner Change-2.59%
Market Cap3.71B
Analysts79
Price Target39.5 (5.78%)
Short Float %4.95%
Short Ratio4.17
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)3.39%
Min EPS beat(2)3.02%
Max EPS beat(2)3.76%
EPS beat(4)4
Avg EPS beat(4)3.87%
Min EPS beat(4)3.02%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)11
Avg EPS beat(12)20.74%
EPS beat(16)15
Avg EPS beat(16)19.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.39%
Revenue beat(4)1
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)0.91%
PT rev (1m)-0.23%
PT rev (3m)-1.16%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)6.38%
EPS NY rev (1m)0%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.25%
Valuation
Industry RankSector Rank
PE 18.39
Fwd PE 14.67
P/S 4.03
P/FCF 16.25
P/OCF 13.6
P/B 8.51
P/tB 9.2
EV/EBITDA 15.56
EPS(TTM)2.03
EY5.44%
EPS(NY)2.55
Fwd EY6.82%
FCF(TTM)2.3
FCFY6.15%
OCF(TTM)2.75
OCFY7.35%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.64
PEG (5Y)0.69
Profitability
Industry RankSector Rank
ROA 17.87%
ROE 29.8%
ROCE 31.44%
ROIC 20.08%
ROICexc 31.75%
ROICexgc 34.59%
OM 21.51%
PM (TTM) 14.12%
GM 86.54%
FCFM 24.81%
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-Score9
Asset Turnover1.27
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 173.56%
Cap/Sales 4.83%
Interest Coverage 254.14
Cash Conversion 122.02%
Profit Quality 175.73%
Current Ratio 3.18
Quick Ratio 3.17
Altman-Z 10.97
F-Score9
WACC9.55%
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)42.96%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%39.02%
EPS Next Y28.53%
EPS Next 2Y21.31%
EPS Next 3Y22.37%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year3.73%
Revenue Next 2Y4.79%
Revenue Next 3Y5.7%
Revenue Next 5Y5.62%
EBIT growth 1Y230.44%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year31.06%
EBIT Next 3Y17.91%
EBIT Next 5Y13.88%
FCF growth 1Y-6.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y3.14%
OCF growth 3Y37.49%
OCF growth 5Y29.52%