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CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG - US1417881091 - Common Stock

34.6 USD
+0.22 (+0.64%)
Last: 8/29/2025, 8:09:47 PM
34.6 USD
0 (0%)
After Hours: 8/29/2025, 8:09:47 PM
Fundamental Rating

7

Overall CARG gets a fundamental rating of 7 out of 10. We evaluated CARG against 70 industry peers in the Interactive Media & Services industry. CARG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CARG is not valued too expensively and it also shows a decent growth rate. These ratings could make CARG a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

CARG had positive earnings in the past year.
CARG had a positive operating cash flow in the past year.
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

The Return On Assets of CARG (17.87%) is better than 90.00% 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 94.29% of the companies in the same industry.
CARG's Return On Invested Capital of 20.08% is amongst the best of the industry. CARG outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CARG is below the industry average of 12.61%.
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 81.43% 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 87.14% of its industry peers.
CARG's Operating Margin has improved in the last couple of years.
CARG's Gross Margin of 86.54% is amongst the best of the industry. CARG outperforms 88.57% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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

CARG has an Altman-Z score of 10.37. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.37, CARG belongs to the top of the industry, outperforming 87.14% 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 10.37
ROIC/WACC2.17
WACC9.24%
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 71.43% 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.
The Quick ratio of CARG (3.17) is better than 71.43% 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

The Earnings Per Share has grown by an impressive 42.96% over the past year.
Measured over the past years, CARG shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.69% on average per year.
CARG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
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)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 21.82% on average per year.
CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.05% yearly.
EPS Next Y28.53%
EPS Next 2Y21.31%
EPS Next 3Y22.37%
EPS Next 5Y21.82%
Revenue Next Year3.66%
Revenue Next 2Y4.48%
Revenue Next 3Y5.34%
Revenue Next 5Y6.05%

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 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.04, CARG is valued on the expensive side.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 72.86% of the companies are valued more expensively.
CARG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.59, CARG is valued correctly.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, CARG is valued a bit cheaper.
Industry RankSector Rank
PE 17.04
Fwd PE 13.59
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

CARG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CARG is cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 74.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.06
EV/EBITDA 14.25
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)0.6
PEG (5Y)0.64
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 (8/29/2025, 8:09:47 PM)

After market: 34.6 0 (0%)

34.6

+0.22 (+0.64%)

Chartmill FA Rating
GICS SectorCommunication Services
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 Change0.47%
Market Cap3.43B
Analysts79
Price Target39.69 (14.71%)
Short Float %3.66%
Short Ratio3.25
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)4.1%
EPS NQ rev (1m)2.68%
EPS NQ rev (3m)15.5%
EPS NY rev (1m)1.54%
EPS NY rev (3m)5.6%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-2.98%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-1.09%
Valuation
Industry RankSector Rank
PE 17.04
Fwd PE 13.59
P/S 3.74
P/FCF 15.06
P/OCF 12.6
P/B 7.89
P/tB 8.53
EV/EBITDA 14.25
EPS(TTM)2.03
EY5.87%
EPS(NY)2.55
Fwd EY7.36%
FCF(TTM)2.3
FCFY6.64%
OCF(TTM)2.75
OCFY7.93%
SpS9.26
BVpS4.39
TBVpS4.06
PEG (NY)0.6
PEG (5Y)0.64
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 10.37
F-Score9
WACC9.24%
ROIC/WACC2.17
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 5Y21.82%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year3.66%
Revenue Next 2Y4.48%
Revenue Next 3Y5.34%
Revenue Next 5Y6.05%
EBIT growth 1Y230.44%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year31.06%
EBIT Next 3Y17.91%
EBIT Next 5Y15.64%
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%