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CARGURUS INC (CARG) Stock Fundamental Analysis

NASDAQ:CARG - Nasdaq - US1417881091 - Common Stock - Currency: USD

31.41  -0.4 (-1.26%)

After market: 32.41 +1 (+3.18%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to CARG. CARG was compared to 70 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

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7

1. Profitability

1.1 Basic Checks

In the past year CARG was profitable.
CARG had a positive operating cash flow in the past year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

With a decent Return On Assets value of 5.58%, CARG is doing good in the industry, outperforming 72.86% of the companies in the same industry.
CARG has a Return On Equity of 9.56%. This is in the better half of the industry: CARG outperforms 80.00% of its industry peers.
CARG has a better Return On Invested Capital (18.93%) than 88.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARG is below the industry average of 11.90%.
The 3 year average ROIC (8.25%) for CARG is below the current ROIC(18.93%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.58%
ROE 9.56%
ROIC 18.93%
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

The Profit Margin of CARG (4.25%) is better than 62.86% of its industry peers.
In the last couple of years the Profit Margin of CARG has declined.
With an excellent Operating Margin value of 19.50%, CARG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of CARG has grown nicely.
CARG's Gross Margin of 85.58% is amongst the best of the industry. CARG outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 19.5%
PM (TTM) 4.25%
GM 85.58%
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.
The number of shares outstanding for CARG has been reduced compared to 1 year ago.
CARG has less shares outstanding than it did 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 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 9.72 indicates that CARG is not in any danger for bankruptcy at the moment.
CARG's Altman-Z score of 9.72 is amongst the best of the industry. CARG outperforms 87.14% 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 9.72
ROIC/WACC2.14
WACC8.86%
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

A Current Ratio of 2.67 indicates that CARG has no problem at all paying its short term obligations.
The Current ratio of CARG (2.67) is better than 61.43% of its industry peers.
A Quick Ratio of 2.66 indicates that CARG has no problem at all paying its short term obligations.
CARG's Quick ratio of 2.66 is fine compared to the rest of the industry. CARG outperforms 61.43% of its industry peers.
Industry RankSector Rank
Current Ratio 2.67
Quick Ratio 2.66
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.
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 decreased by -2.17% in the past year.
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)-2.17%
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 29.13% on average per year.
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 6.87% on average per year.
EPS Next Y26.58%
EPS Next 2Y22.21%
EPS Next 3Y20.23%
EPS Next 5Y29.13%
Revenue Next Year4.53%
Revenue Next 2Y6.24%
Revenue Next 3Y6.61%
Revenue Next 5Y6.87%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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7

4. Valuation

4.1 Price/Earnings Ratio

CARG is valuated correctly with a Price/Earnings ratio of 15.47.
70.00% 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 26.54, CARG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.16, the valuation of CARG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARG indicates a rather cheap valuation: CARG is cheaper than 81.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.28. CARG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.47
Fwd PE 12.16
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 70.00% of the companies in the same industry.
70.00% of the companies in the same industry are more expensive than CARG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.24
EV/EBITDA 14.61
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.
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 20.23% in the coming years.
PEG (NY)0.58
PEG (5Y)0.58
EPS Next 2Y22.21%
EPS Next 3Y20.23%

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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 (8/7/2025, 8:14:03 PM)

After market: 32.41 +1 (+3.18%)

31.41

-0.4 (-1.26%)

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 Owners103.84%
Inst Owner Change0.22%
Ins Owners2.35%
Ins Owner Change-0.06%
Market Cap3.10B
Analysts79
Price Target39.59 (26.04%)
Short Float %4.14%
Short Ratio4.32
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)4.23%
Min EPS beat(2)3.76%
Max EPS beat(2)4.7%
EPS beat(4)4
Avg EPS beat(4)8.16%
Min EPS beat(4)3.76%
Max EPS beat(4)20.18%
EPS beat(8)8
Avg EPS beat(8)12.08%
EPS beat(12)11
Avg EPS beat(12)20.59%
EPS beat(16)15
Avg EPS beat(16)22.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-2.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)1.47%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)1.76%
PT rev (1m)-0.93%
PT rev (3m)3.86%
EPS NQ rev (1m)3.21%
EPS NQ rev (3m)21.12%
EPS NY rev (1m)3.33%
EPS NY rev (3m)12.85%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.54%
Valuation
Industry RankSector Rank
PE 15.47
Fwd PE 12.16
P/S 3.44
P/FCF 15.24
P/OCF 11.44
P/B 7.72
P/tB 9.03
EV/EBITDA 14.61
EPS(TTM)2.03
EY6.46%
EPS(NY)2.58
Fwd EY8.23%
FCF(TTM)2.06
FCFY6.56%
OCF(TTM)2.75
OCFY8.74%
SpS9.14
BVpS4.07
TBVpS3.48
PEG (NY)0.58
PEG (5Y)0.58
Profitability
Industry RankSector Rank
ROA 5.58%
ROE 9.56%
ROCE 29.64%
ROIC 18.93%
ROICexc 26.69%
ROICexgc 30.94%
OM 19.5%
PM (TTM) 4.25%
GM 85.58%
FCFM 22.55%
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-Score8
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 276.58%
Cap/Sales 7.48%
Interest Coverage 264.63
Cash Conversion 135.23%
Profit Quality 530.2%
Current Ratio 2.67
Quick Ratio 2.66
Altman-Z 9.72
F-Score8
WACC8.86%
ROIC/WACC2.14
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 Y26.58%
EPS Next 2Y22.21%
EPS Next 3Y20.23%
EPS Next 5Y29.13%
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%7.01%
Revenue Next Year4.53%
Revenue Next 2Y6.24%
Revenue Next 3Y6.61%
Revenue Next 5Y6.87%
EBIT growth 1Y295.74%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year31.06%
EBIT Next 3Y17.91%
EBIT Next 5Y18.78%
FCF growth 1Y-2.86%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y18.35%
OCF growth 3Y37.49%
OCF growth 5Y29.52%