CARGURUS INC (CARG) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CARG • US1417881091

28.61 USD
+0.17 (+0.6%)
At close: Feb 6, 2026
28.61 USD
0 (0%)
After Hours: 2/6/2026, 4:30:02 PM
Fundamental Rating

7

CARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CARG. This makes CARG very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CARG was profitable.
  • CARG had a positive operating cash flow in the past year.
  • Of the past 5 years CARG 4 years were profitable.
  • 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 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 23.01%, CARG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
  • CARG's Return On Equity of 40.48% is amongst the best of the industry. CARG outperforms 98.55% of its industry peers.
  • CARG's Return On Invested Capital of 23.46% is amongst the best of the industry. CARG outperforms 92.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CARG is significantly below the industry average of 13.52%.
  • The last Return On Invested Capital (23.46%) for CARG is above the 3 year average (8.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROIC 23.46%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

  • With an excellent Profit Margin value of 16.41%, CARG belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • CARG's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 22.47%, CARG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • CARG's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 88.15%, CARG belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CARG has declined.
Industry RankSector Rank
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • 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.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

  • CARG has an Altman-Z score of 9.25. This indicates that CARG is financially healthy and has little risk of bankruptcy at the moment.
  • CARG has a better Altman-Z score (9.25) 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.25
ROIC/WACC2.65
WACC8.85%
CARG Yearly LT Debt VS Equity VS FCFCARG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

  • CARG has a Current Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • CARG has a better Current ratio (2.87) than 75.36% of its industry peers.
  • CARG has a Quick Ratio of 2.87. This indicates that CARG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of CARG (2.87) is better than 75.36% of its industry peers.
Industry RankSector Rank
Current Ratio 2.87
Quick Ratio 2.87
CARG Yearly Current Assets VS Current LiabilitesCARG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • CARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.18%, which is quite impressive.
  • 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 4.21%.
  • The Revenue has been growing by 8.72% on average over the past years. This is quite good.
EPS 1Y (TTM)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%

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 21.55% on average per year.
  • Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y30.89%
EPS Next 2Y22.71%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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 2031 2 4 6

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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.25, which indicates a correct valuation of CARG.
  • Based on the Price/Earnings ratio, CARG is valued a bit cheaper than 68.12% of the companies in the same industry.
  • CARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
  • CARG is valuated reasonably with a Price/Forward Earnings ratio of 10.98.
  • CARG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARG is cheaper than 65.22% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. CARG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.25
Fwd PE 10.98
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 66.67% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CARG is valued a bit cheaper than 76.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.86
EV/EBITDA 10.75
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 an outstanding 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 21.74% in the coming years.
PEG (NY)0.43
PEG (5Y)0.5
EPS Next 2Y22.71%
EPS Next 3Y21.74%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for CARG!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CARGURUS INC

NASDAQ:CARG (2/6/2026, 4:30:02 PM)

After market: 28.61 0 (0%)

28.61

+0.17 (+0.6%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners107.52%
Inst Owner Change-0.83%
Ins Owners2.03%
Ins Owner Change-0.8%
Market Cap2.73B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.35 (44.53%)
Short Float %5.79%
Short Ratio5.53
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.56%
Min EPS beat(2)2.1%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.4%
Min EPS beat(4)2.1%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.61%
EPS beat(12)12
Avg EPS beat(12)22.55%
EPS beat(16)15
Avg EPS beat(16)18.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.52%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)0.05%
Revenue beat(16)5
Avg Revenue beat(16)0.86%
PT rev (1m)0%
PT rev (3m)1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector Rank
PE 13.25
Fwd PE 10.98
P/S 2.95
P/FCF 10.86
P/OCF 9.49
P/B 7.27
P/tB 7.95
EV/EBITDA 10.75
EPS(TTM)2.16
EY7.55%
EPS(NY)2.61
Fwd EY9.11%
FCF(TTM)2.64
FCFY9.21%
OCF(TTM)3.02
OCFY10.54%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.43
PEG (5Y)0.5
Graham Number13.83
Profitability
Industry RankSector Rank
ROA 23.01%
ROE 40.48%
ROCE 36.74%
ROIC 23.46%
ROICexc 34.28%
ROICexgc 37.36%
OM 22.47%
PM (TTM) 16.41%
GM 88.15%
FCFM 27.15%
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%
ROICexgc growth 3Y-17.23%
ROICexgc 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 Turnover1.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 131.49%
Cap/Sales 3.92%
Interest Coverage 319.79
Cash Conversion 122.09%
Profit Quality 165.52%
Current Ratio 2.87
Quick Ratio 2.87
Altman-Z 9.25
F-Score8
WACC8.85%
ROIC/WACC2.65
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)41.18%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%28.89%
EPS Next Y30.89%
EPS Next 2Y22.71%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.32%
Revenue Next 2Y5.21%
Revenue Next 3Y6.09%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.7%
EBIT Next 3Y19.22%
EBIT Next 5Y14.24%
FCF growth 1Y31.3%
FCF growth 3Y24.16%
FCF growth 5Y23.64%
OCF growth 1Y32.49%
OCF growth 3Y37.49%
OCF growth 5Y29.52%

CARGURUS INC / CARG FAQ

What is the ChartMill fundamental rating of CARGURUS INC (CARG) stock?

ChartMill assigns a fundamental rating of 7 / 10 to CARG.


What is the valuation status for CARG stock?

ChartMill assigns a valuation rating of 8 / 10 to CARGURUS INC (CARG). This can be considered as Undervalued.


How profitable is CARGURUS INC (CARG) stock?

CARGURUS INC (CARG) has a profitability rating of 8 / 10.


What is the valuation of CARGURUS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 13.25 and the Price/Book (PB) ratio is 7.27.