CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
34.98 USD
-0.01 (-0.03%)
Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG 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. With these ratings, CARG could be worth investigating further for quality investing!.
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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.87%, CARG belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
CARG's Return On Equity of 29.80% is amongst the best of the industry. CARG outperforms 94.20% of its industry peers.
CARG has a better Return On Invested Capital (20.08%) than 88.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARG is significantly below the industry average of 13.27%.
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 Rank | Sector 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%
1.3 Margins
CARG has a better Profit Margin (14.12%) than 79.71% of its industry peers.
In the last couple of years the Profit Margin of CARG has declined.
CARG's Operating Margin of 21.51% is amongst the best of the industry. CARG outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
The Gross Margin of CARG (86.54%) is better than 88.41% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector 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%
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.
CARG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CARG has an Altman-Z score of 10.49. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CARG (10.49) is better 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.49 |
ROIC/WACC2.07
WACC9.68%
2.3 Liquidity
A Current Ratio of 3.18 indicates that CARG has no problem at all paying its short term obligations.
The Current ratio of CARG (3.18) is better 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 better Quick ratio (3.17) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.96% over the past year.
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 4.80%.
CARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.72% yearly.
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
Based on estimates for the next years, CARG will show a very strong growth in Earnings Per Share. The EPS will grow by 21.39% on average per year.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y30%
EPS Next 2Y21.64%
EPS Next 3Y20.73%
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.
4. Valuation
4.1 Price/Earnings Ratio
CARG is valuated rather expensively with a Price/Earnings ratio of 17.23.
65.22% 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 27.49, CARG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.67, the valuation of CARG can be described as correct.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, CARG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit 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 the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | 14.52 |
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 decent profitability rating of CARG may justify a higher PE ratio.
CARG's earnings are expected to grow with 20.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)0.65
EPS Next 2Y21.64%
EPS Next 3Y20.73%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CARG (10/15/2025, 3:35:56 PM)
34.98
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.19%
Ins Owners2.17%
Ins Owner Change-2.24%
Market Cap3.47B
Analysts79
Price Target39.5 (12.92%)
Short Float %4.62%
Short Ratio3.51
Dividend
| Industry Rank | Sector 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%
PT rev (3m)-1.16%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)1.14%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 13.67 | ||
| P/S | 3.78 | ||
| P/FCF | 15.22 | ||
| P/OCF | 12.74 | ||
| P/B | 7.97 | ||
| P/tB | 8.62 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)2.03
EY5.8%
EPS(NY)2.56
Fwd EY7.32%
FCF(TTM)2.3
FCFY6.57%
OCF(TTM)2.75
OCFY7.85%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.57
PEG (5Y)0.65
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.49 |
F-Score9
WACC9.68%
ROIC/WACC2.07
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 Y30%
EPS Next 2Y21.64%
EPS Next 3Y20.73%
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 Year35.83%
EBIT Next 3Y18.47%
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%