CARGURUS INC (CARG) Stock Fundamental Analysis
USA - NASDAQ:CARG - US1417881091 - Common Stock
35.52 USD
-0.7 (-1.93%)
35.52 USD
0 (0%)
CARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make CARG a good candidate for value and quality investing.
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.
1.2 Ratios
CARG has a better Return On Assets (23.01%) than 94.29% of its industry peers.
CARG has a better Return On Equity (40.48%) than 98.57% of its industry peers.
CARG has a better Return On Invested Capital (23.46%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARG is significantly below the industry average of 13.59%.
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's Profit Margin of 16.41% is amongst the best of the industry. CARG outperforms 81.43% of its industry peers.
In the last couple of years the Profit Margin of CARG has declined.
With an excellent Operating Margin value of 22.47%, CARG belongs to the best of the industry, outperforming 88.57% 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 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.
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.
2.2 Solvency
An Altman-Z score of 11.11 indicates that CARG is not in any danger for bankruptcy at the moment.
The Altman-Z score of CARG (11.11) is better than 92.86% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.11 |
ROIC/WACC2.36
WACC9.93%
2.3 Liquidity
A Current Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
CARG has a better Current ratio (2.87) than 70.00% of its industry peers.
A Quick Ratio of 2.87 indicates that CARG has no problem at all paying its short term obligations.
CARG has a better Quick ratio (2.87) than 71.43% 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 40.52%, 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.
The Revenue has been growing slightly by 4.21% 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)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
3.2 Future
CARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.39% yearly.
Based on estimates for the next years, CARG will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
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
A Price/Earnings ratio of 16.52 indicates a correct valuation of CARG.
Based on the Price/Earnings ratio, CARG is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
CARG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 13.81, CARG is valued correctly.
Based on the Price/Forward Earnings ratio, CARG is valued a bit cheaper than 65.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. CARG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
65.71% of the companies in the same industry are more expensive than CARG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARG indicates a somewhat cheap valuation: CARG is cheaper than 72.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 14.49 |
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.
CARG has an outstanding profitability rating, which may justify a higher PE ratio.
CARG's earnings are expected to grow with 21.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)0.62
EPS Next 2Y21.91%
EPS Next 3Y21.62%
5. Dividend
5.1 Amount
CARG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.52
-0.7 (-1.93%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.82%
Ins Owners2.17%
Ins Owner Change-1.54%
Market Cap3.53B
Revenue(TTM)926.42M
Net Income(TTM)151.99M
Analysts79
Price Target40.55 (14.16%)
Short Float %5.38%
Short Ratio4.31
Dividend
| Industry Rank | Sector 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)2.13%
Min EPS beat(2)1.25%
Max EPS beat(2)3.02%
EPS beat(4)4
Avg EPS beat(4)3.18%
Min EPS beat(4)1.25%
Max EPS beat(4)4.7%
EPS beat(8)8
Avg EPS beat(8)6.5%
EPS beat(12)12
Avg EPS beat(12)22.48%
EPS beat(16)15
Avg EPS beat(16)18.33%
Revenue beat(2)0
Avg Revenue beat(2)-49.69%
Min Revenue beat(2)-98%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-26.4%
Min Revenue beat(4)-98%
Max Revenue beat(4)-1.39%
Revenue beat(8)1
Avg Revenue beat(8)-13.49%
Revenue beat(12)3
Avg Revenue beat(12)-8.08%
Revenue beat(16)5
Avg Revenue beat(16)-5.23%
PT rev (1m)2.64%
PT rev (3m)2.4%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 13.81 | ||
| P/S | 3.81 | ||
| P/FCF | 14.01 | ||
| P/OCF | 12.25 | ||
| P/B | 9.39 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)2.15
EY6.05%
EPS(NY)2.57
Fwd EY7.24%
FCF(TTM)2.53
FCFY7.14%
OCF(TTM)2.9
OCFY8.17%
SpS9.33
BVpS3.78
TBVpS3.46
PEG (NY)0.56
PEG (5Y)0.62
Graham Number13.53
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 | 11.11 |
F-Score8
WACC9.93%
ROIC/WACC2.36
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)40.52%
EPS 3Y3.73%
EPS 5Y26.69%
EPS Q2Q%26.67%
EPS Next Y29.65%
EPS Next 2Y21.91%
EPS Next 3Y21.62%
EPS Next 5Y21.39%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.04%
Revenue growth 5Y8.72%
Sales Q2Q%-97.93%
Revenue Next Year3.72%
Revenue Next 2Y4.69%
Revenue Next 3Y5.51%
Revenue Next 5Y5.62%
EBIT growth 1Y157.19%
EBIT growth 3Y2.1%
EBIT growth 5Y35.7%
EBIT Next Year35.83%
EBIT Next 3Y18.47%
EBIT Next 5Y13.88%
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.
Can you provide the valuation status for CARGURUS INC?
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.
Can you provide the PE and PB ratios for CARG stock?
The Price/Earnings (PE) ratio for CARGURUS INC (CARG) is 16.52 and the Price/Book (PB) ratio is 9.39.
How financially healthy is CARGURUS INC?
The financial health rating of CARGURUS INC (CARG) is 9 / 10.