CARS.COM INC (CARS)
US14575E1055 - Common Stock
Overall CARS gets a fundamental rating of 5 out of 10. We evaluated CARS against 68 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARS was profitable.
In the past year CARS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CARS reported negative net income in multiple years.
Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
CARS has a better Return On Assets (10.10%) than 86.57% of its industry peers.
CARS has a Return On Equity of 24.07%. This is amongst the best in the industry. CARS outperforms 91.04% of its industry peers.
The Return On Invested Capital of CARS (4.15%) is better than 74.63% of its industry peers.
CARS had an Average Return On Invested Capital over the past 3 years of 4.61%. This is significantly below the industry average of 9.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 24.07% | ||
| ROIC | 4.15% |
ROA(3y)4.28%
ROA(5y)-16.49%
ROE(3y)10.42%
ROE(5y)-47.94%
ROIC(3y)4.61%
ROIC(5y)3.64%
1.3 Margins
Looking at the Profit Margin, with a value of 17.19%, CARS belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
In the last couple of years the Profit Margin of CARS has grown nicely.
CARS's Operating Margin of 8.13% is fine compared to the rest of the industry. CARS outperforms 71.64% of its industry peers.
In the last couple of years the Operating Margin of CARS has declined.
Looking at the Gross Margin, with a value of 67.83%, CARS is in line with its industry, outperforming 50.75% of the companies in the same industry.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | 17.19% | ||
| GM | 67.83% |
OM growth 3Y14.63%
OM growth 5Y-11.52%
PM growth 3YN/A
PM growth 5Y24.01%
GM growth 3Y-1.23%
GM growth 5Y-1.96%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARS is destroying value.
The number of shares outstanding for CARS has been reduced compared to 1 year ago.
Compared to 5 years ago, CARS has less shares outstanding
CARS has a better debt/assets ratio than last year.
2.2 Solvency
CARS has an Altman-Z score of 0.53. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CARS (0.53) is worse than 61.19% of its industry peers.
CARS has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as CARS would need 3.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, CARS is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that CARS is somewhat dependend on debt financing.
CARS has a Debt to Equity ratio of 0.93. This is in the lower half of the industry: CARS underperforms 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.5
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.22 indicates that CARS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, CARS is doing worse than 80.60% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that CARS should not have too much problems paying its short term obligations.
The Quick ratio of CARS (1.22) is worse than 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 137.96% over the past year.
The Earnings Per Share has been growing by 22.78% on average over the past years. This is a very strong growth
Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 5.40% in the last year.
Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 0.81% on average per year.
EPS 1Y (TTM)137.96%
EPS 3Y18.87%
EPS 5Y22.78%
EPS growth Q2Q-20%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y7.97%
Revenue growth 5Y0.81%
Revenue growth Q2Q6.78%
3.2 Future
CARS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.85% yearly.
Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y-70.52%
EPS Next 2Y-36.77%
EPS Next 3Y-16.85%
EPS Next 5YN/A
Revenue Next Year7.03%
Revenue Next 2Y6.05%
Revenue Next 3Y5.69%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.77, which indicates a very decent valuation of CARS.
Compared to the rest of the industry, the Price/Earnings ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 88.06% of the companies listed in the same industry.
CARS is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 33.14, the valuation of CARS can be described as expensive.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 61.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CARS to the average of the S&P500 Index (20.72), we can say CARS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 33.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 82.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CARS is valued cheaply inside the industry as 92.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
CARS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CARS's earnings are expected to decrease with -16.85% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-36.77%
EPS Next 3Y-16.85%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CARS.COM INC
NYSE:CARS (5/2/2024, 7:04:00 PM)
After market: 16.9 0 (0%)16.9
+0.31 (+1.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 33.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 24.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.13% | ||
| PM (TTM) | 17.19% | ||
| GM | 67.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)137.96%
EPS 3Y18.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y-70.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.4%
Revenue growth 3Y7.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y