CARGURUS INC (CARG)
US1417881091 - Common Stock
We assign a fundamental rating of 6 out of 10 to CARG. CARG was compared to 68 industry peers in the Interactive Media & Services industry. While CARG has a great health rating, its profitability is only average at the moment. CARG is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years CARG 4 years were profitable.
In the past 5 years CARG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CARG (3.38%) is better than 70.15% of its industry peers.
CARG has a Return On Equity of 5.03%. This is in the better half of the industry: CARG outperforms 70.15% of its industry peers.
CARG has a Return On Invested Capital of 3.21%. This is in the better half of the industry: CARG outperforms 67.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CARG is in line with the industry average of 9.87%.
The last Return On Invested Capital (3.21%) for CARG is well below the 3 year average (9.65%), which needs to be investigated, but indicates that CARG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.03% | ||
| ROIC | 3.21% |
ROA(3y)8.09%
ROA(5y)10.08%
ROE(3y)10.46%
ROE(5y)13.71%
ROIC(3y)9.65%
ROIC(5y)11.03%
1.3 Margins
CARG has a better Profit Margin (3.40%) than 68.66% of its industry peers.
CARG's Profit Margin has declined in the last couple of years.
CARG has a Operating Margin of 3.57%. This is in the better half of the industry: CARG outperforms 64.18% of its industry peers.
CARG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 71.26%, CARG perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
In the last couple of years the Gross Margin of CARG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.57% | ||
| PM (TTM) | 3.4% | ||
| GM | 71.26% |
OM growth 3Y-41.4%
OM growth 5Y-6.92%
PM growth 3Y-37.7%
PM growth 5Y-25.02%
GM growth 3Y-8.24%
GM growth 5Y-5.5%
2. Health
2.1 Basic Checks
CARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CARG has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 6.87 indicates that CARG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.87, CARG belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.87 |
ROIC/WACC0.35
WACC9.22%
2.3 Liquidity
A Current Ratio of 3.40 indicates that CARG has no problem at all paying its short term obligations.
CARG has a Current ratio of 3.40. This is in the better half of the industry: CARG outperforms 64.18% of its industry peers.
A Quick Ratio of 3.39 indicates that CARG has no problem at all paying its short term obligations.
The Quick ratio of CARG (3.39) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.71% over the past year.
The Earnings Per Share has been growing by 31.95% on average over the past years. This is a very strong growth
CARG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.76%.
The Revenue has been growing by 15.02% on average over the past years. This is quite good.
EPS 1Y (TTM)11.71%
EPS 3Y5.04%
EPS 5Y31.95%
EPS growth Q2Q59.09%
Revenue 1Y (TTM)-44.76%
Revenue growth 3Y18.35%
Revenue growth 5Y15.02%
Revenue growth Q2Q-22.18%
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 22.69% on average per year.
The Revenue is expected to grow by 14.42% on average over the next years. This is quite good.
EPS Next Y3.26%
EPS Next 2Y12.84%
EPS Next 3Y14.95%
EPS Next 5Y22.69%
Revenue Next Year-0.11%
Revenue Next 2Y4.97%
Revenue Next 3Y7.88%
Revenue Next 5Y14.42%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of CARG.
79.10% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. CARG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.77, which indicates a rather expensive current valuation of CARG.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
CARG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 61.19% of the companies listed 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 67.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 26.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 14.95% in the coming years.
PEG (NY)5.63
PEG (5Y)0.57
EPS Next 2Y12.84%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
No dividends for CARG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARGURUS INC
NASDAQ:CARG (5/3/2024, 7:00:02 PM)
After market: 22.75 0 (0%)22.75
-0.16 (-0.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.63
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 5.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.57% | ||
| PM (TTM) | 3.4% | ||
| GM | 71.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.71%
EPS 3Y5.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-44.76%
Revenue growth 3Y18.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y