34.5302 USD
-0.21 (-0.6%)
Taking everything into account, CARG scores 7 out of 10 in our fundamental rating. CARG was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, CARG could be worth investigating further for value and quality investing!.
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.
- In the past 5 years CARG always reported a positive cash flow from operatings.
1.2 Ratios
- CARG has a Return On Assets of 23.01%. This is amongst the best in the industry. CARG outperforms 92.86% of its industry peers.
- CARG has a better Return On Equity (40.48%) than 98.57% of its industry peers.
- CARG has a Return On Invested Capital of 23.46%. This is amongst the best in the industry. CARG outperforms 88.57% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CARG is significantly below the industry average of 13.70%.
- The 3 year average ROIC (8.25%) for CARG is below the current ROIC(23.46%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- CARG has a better Profit Margin (16.41%) than 82.86% of its industry peers.
- In the last couple of years the Profit Margin of CARG has declined.
- CARG has a better Operating Margin (22.47%) than 87.14% of its industry peers.
- In the last couple of years the Operating Margin of CARG has grown nicely.
- CARG's Gross Margin of 88.15% is amongst the best of the industry. CARG outperforms 88.57% of its industry peers.
- CARG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
- 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.
2.2 Solvency
- An Altman-Z score of 10.52 indicates that CARG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CARG (10.52) is better than 90.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.52 |
ROIC/WACC2.67
WACC8.79%
2.3 Liquidity
- A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
- CARG's Current ratio of 2.87 is fine compared to the rest of the industry. CARG outperforms 74.29% 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.
- CARG has a Quick ratio of 2.87. This is in the better half of the industry: CARG outperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.87 |
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.
- The Earnings Per Share has been growing by 26.69% on average over the past years. This is a very strong growth
- 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
- CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
- CARG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.88% yearly.
EPS Next Y30.82%
EPS Next 2Y23.21%
EPS Next 3Y22.11%
EPS Next 5Y21.55%
Revenue Next Year4.3%
Revenue Next 2Y5.21%
Revenue Next 3Y5.96%
Revenue Next 5Y5.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.99, the valuation of CARG can be described as correct.
- 72.86% of the companies in the same industry are more expensive than CARG, based on the Price/Earnings ratio.
- CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
- The Price/Forward Earnings ratio is 13.15, which indicates a correct valuation of CARG.
- 71.43% of the companies in the same industry are more expensive than CARG, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CARG to the average of the S&P500 Index (24.31), we can say CARG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CARG is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
- 77.14% of the companies in the same industry are more expensive than CARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as CARG's earnings are expected to grow with 22.11% in the coming years.
PEG (NY)0.52
PEG (5Y)0.6
EPS Next 2Y23.21%
EPS Next 3Y22.11%
5. Dividend
5.1 Amount
- CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:CARG (1/16/2026, 12:40:48 PM)
34.5302
-0.21 (-0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners107.52%
Inst Owner Change2.18%
Ins Owners2.03%
Ins Owner Change-0.89%
Market Cap3.30B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target41.35 (19.75%)
Short Float %6.78%
Short Ratio6.03
Dividend
| Industry Rank | Sector 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)0.62%
PT rev (3m)4.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 13.15 | ||
| P/S | 3.56 | ||
| P/FCF | 13.1 | ||
| P/OCF | 11.45 | ||
| P/B | 8.78 | ||
| P/tB | 9.59 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)2.16
EY6.26%
EPS(NY)2.63
Fwd EY7.61%
FCF(TTM)2.64
FCFY7.63%
OCF(TTM)3.02
OCFY8.74%
SpS9.71
BVpS3.93
TBVpS3.6
PEG (NY)0.52
PEG (5Y)0.6
Graham Number13.83
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.52 |
F-Score8
WACC8.79%
ROIC/WACC2.67
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 Y30.82%
EPS Next 2Y23.21%
EPS Next 3Y22.11%
EPS Next 5Y21.55%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%3.17%
Revenue Next Year4.3%
Revenue Next 2Y5.21%
Revenue Next 3Y5.96%
Revenue Next 5Y5.88%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year36.72%
EBIT Next 3Y19.57%
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 7 / 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 15.99 and the Price/Book (PB) ratio is 8.78.