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CARGURUS INC (CARG) Stock Fundamental Analysis

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

31.75  +0.57 (+1.83%)

After market: 31.75 0 (0%)

Fundamental Rating

7

Taking everything into account, CARG scores 7 out of 10 in our fundamental rating. CARG was compared to 71 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make CARG suitable for 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.
In the past year CARG had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of 5.66%, CARG is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
CARG has a Return On Equity of 9.70%. This is amongst the best in the industry. CARG outperforms 81.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.90%, CARG belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARG is below the industry average of 12.03%.
The 3 year average ROIC (8.22%) for CARG is below the current ROIC(18.90%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.66%
ROE 9.7%
ROIC 18.9%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.76%
ROE(5y)11.2%
ROIC(3y)8.22%
ROIC(5y)10.28%
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 4.32%. This is in the better half of the industry: CARG outperforms 66.20% of its industry peers.
CARG's Profit Margin has declined in the last couple of years.
CARG's Operating Margin of 19.47% is amongst the best of the industry. CARG outperforms 84.51% of its industry peers.
In the last couple of years the Operating Margin of CARG has grown nicely.
Looking at the Gross Margin, with a value of 85.58%, CARG belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 19.47%
PM (TTM) 4.32%
GM 85.58%
OM growth 3Y4.04%
OM growth 5Y24.69%
PM growth 3YN/A
PM growth 5Y-19.96%
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

CARG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CARG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CARG has less shares outstanding
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 9.79. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.79, CARG belongs to the best of the industry, outperforming 87.32% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.79
ROIC/WACC2.09
WACC9.02%
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 2.65 indicates that CARG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.65, CARG is in line with its industry, outperforming 59.15% of the companies in the same industry.
A Quick Ratio of 2.64 indicates that CARG has no problem at all paying its short term obligations.
The Quick ratio of CARG (2.64) is better than 60.56% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.64
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 43.85% 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 been growing slightly by 0.64% 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)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%

3.2 Future

The Earnings Per Share is expected to grow by 29.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.87% on average over the next years.
EPS Next Y21.72%
EPS Next 2Y20.11%
EPS Next 3Y21.51%
EPS Next 5Y29.13%
Revenue Next Year5.04%
Revenue Next 2Y6.55%
Revenue Next 3Y6.8%
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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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.98 indicates a correct valuation of CARG.
CARG's Price/Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 70.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, CARG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.72, the valuation of CARG can be described as correct.
73.24% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
CARG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 16.98
Fwd PE 12.72
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

Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 64.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.43
EV/EBITDA 14.82
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.
CARG's earnings are expected to grow with 21.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)0.64
EPS Next 2Y20.11%
EPS Next 3Y21.51%

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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 (6/18/2025, 8:00:01 PM)

After market: 31.75 0 (0%)

31.75

+0.57 (+1.83%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners103.84%
Inst Owner Change2.18%
Ins Owners2.35%
Ins Owner Change-1.36%
Market Cap3.14B
Analysts81.05
Price Target37.99 (19.65%)
Short Float %8.59%
Short Ratio6.98
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)-0.33%
PT rev (3m)-3.63%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)15.13%
EPS NY rev (1m)0%
EPS NY rev (3m)9.11%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 16.98
Fwd PE 12.72
P/S 3.47
P/FCF 15.43
P/OCF 11.58
P/B 7.81
P/tB 9.12
EV/EBITDA 14.82
EPS(TTM)1.87
EY5.89%
EPS(NY)2.5
Fwd EY7.86%
FCF(TTM)2.06
FCFY6.48%
OCF(TTM)2.74
OCFY8.63%
SpS9.14
BVpS4.07
TBVpS3.48
PEG (NY)0.78
PEG (5Y)0.64
Profitability
Industry RankSector Rank
ROA 5.66%
ROE 9.7%
ROCE 29.63%
ROIC 18.9%
ROICexc 26.65%
ROICexgc 30.91%
OM 19.47%
PM (TTM) 4.32%
GM 85.58%
FCFM 22.5%
ROA(3y)8.94%
ROA(5y)8.45%
ROE(3y)11.76%
ROE(5y)11.2%
ROIC(3y)8.22%
ROIC(5y)10.28%
ROICexc(3y)15.65%
ROICexc(5y)22.27%
ROICexgc(3y)26.83%
ROICexgc(5y)37.54%
ROCE(3y)12.88%
ROCE(5y)16.12%
ROICexcg growth 3Y-17.41%
ROICexcg growth 5Y9.83%
ROICexc growth 3Y2.8%
ROICexc growth 5Y9.66%
OM growth 3Y4.04%
OM growth 5Y24.69%
PM growth 3YN/A
PM growth 5Y-19.96%
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 280.97%
Cap/Sales 7.48%
Interest Coverage 266.67
Cash Conversion 135.45%
Profit Quality 521.46%
Current Ratio 2.65
Quick Ratio 2.64
Altman-Z 9.79
F-Score8
WACC9.02%
ROIC/WACC2.09
Cap/Depr(3y)166.54%
Cap/Depr(5y)120.06%
Cap/Sales(3y)5.35%
Cap/Sales(5y)3.77%
Profit Quality(3y)386.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.85%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%43.75%
EPS Next Y21.72%
EPS Next 2Y20.11%
EPS Next 3Y21.51%
EPS Next 5Y29.13%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%4.34%
Revenue Next Year5.04%
Revenue Next 2Y6.55%
Revenue Next 3Y6.8%
Revenue Next 5Y6.87%
EBIT growth 1Y295.2%
EBIT growth 3Y1.92%
EBIT growth 5Y35.56%
EBIT Next Year30.68%
EBIT Next 3Y18.43%
EBIT Next 5Y18.78%
FCF growth 1Y-3.06%
FCF growth 3Y24.02%
FCF growth 5Y23.56%
OCF growth 1Y18.19%
OCF growth 3Y37.4%
OCF growth 5Y29.47%