CARS.COM INC (CARS) Stock Fundamental Analysis
NYSE:CARS - New York Stock Exchange, Inc. - US14575E1055 - Common Stock - Currency: USD
Overall CARS gets a fundamental rating of 4 out of 10. We evaluated CARS against 70 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS is valued correctly, but it does not seem to be growing.
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.
CARS had positive earnings in 4 of the past 5 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 (4.19%) than 68.57% of its industry peers.
CARS's Return On Equity of 9.27% is fine compared to the rest of the industry. CARS outperforms 78.57% of its industry peers.
With a decent Return On Invested Capital value of 3.78%, CARS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROIC | 3.78% |
ROA(3y)5.37%
ROA(5y)-11.23%
ROE(3y)12.65%
ROE(5y)-38.25%
ROIC(3y)4.71%
ROIC(5y)4.14%
1.3 Margins
CARS has a better Profit Margin (6.32%) than 74.29% of its industry peers.
In the last couple of years the Profit Margin of CARS has grown nicely.
The Operating Margin of CARS (6.58%) is better than 68.57% of its industry peers.
CARS's Operating Margin has declined in the last couple of years.
CARS has a Gross Margin (66.62%) which is in line with its industry peers.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% |
OM growth 3Y-2.2%
OM growth 5Y-2.9%
PM growth 3Y57%
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-1.8%
2. Health
2.1 Basic Checks
CARS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, CARS has an improved debt to assets ratio.
2.2 Solvency
CARS has an Altman-Z score of 0.46. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
CARS has a worse Altman-Z score (0.46) than 60.00% of its industry peers.
The Debt to FCF ratio of CARS is 3.13, which is a good value as it means it would take CARS, 3.13 years of fcf income to pay off all of its debts.
CARS's Debt to FCF ratio of 3.13 is fine compared to the rest of the industry. CARS outperforms 65.71% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that CARS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, CARS is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.43
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.65 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a worse Current ratio (1.65) than 62.86% of its industry peers.
A Quick Ratio of 1.65 indicates that CARS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.65, CARS is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.69%.
Measured over the past years, CARS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.33% on average per year.
CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
EPS 1Y (TTM)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
3.2 Future
Based on estimates for the next years, CARS will show a small growth in Earnings Per Share. The EPS will grow by 4.40% on average per year.
Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y-57.78%
EPS Next 2Y-12.54%
EPS Next 3Y4.4%
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y1.94%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
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 accelerating.
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
CARS is valuated rather expensively with a Price/Earnings ratio of 18.94.
Compared to the rest of the industry, the Price/Earnings ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 70.00% of the companies listed in the same industry.
CARS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.38 indicates a rather expensive valuation of CARS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CARS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 23.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CARS is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.57 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.54%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.88
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.79%
Inst Owner Change-0.12%
Ins Owners3.48%
Ins Owner Change21.57%
Market Cap810.02M
Analysts78.46
Price Target16.92 (31.37%)
Short Float %7.18%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.58%
Min EPS beat(2)-127.23%
Max EPS beat(2)82.07%
EPS beat(4)3
Avg EPS beat(4)103.55%
Min EPS beat(4)-127.23%
Max EPS beat(4)399.11%
EPS beat(8)4
Avg EPS beat(8)182.52%
EPS beat(12)7
Avg EPS beat(12)136.4%
EPS beat(16)9
Avg EPS beat(16)96.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-2.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.31%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.9%
PT rev (1m)0%
PT rev (3m)-11.95%
EPS NQ rev (1m)-54.07%
EPS NQ rev (3m)-53.03%
EPS NY rev (1m)-50.54%
EPS NY rev (3m)-60.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 23.38 | ||
| P/S | 1.13 | ||
| P/FCF | 5.57 | ||
| P/OCF | 5.45 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.01 |
EPS(TTM)0.68
EY5.28%
EPS(NY)0.55
Fwd EY4.28%
FCF(TTM)2.31
FCFY17.95%
OCF(TTM)2.36
OCFY18.33%
SpS11.42
BVpS7.79
TBVpS-3.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROCE | 4.85% | ||
| ROIC | 3.78% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 17.94% | ||
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% | ||
| FCFM | 20.25% |
ROA(3y)5.37%
ROA(5y)-11.23%
ROE(3y)12.65%
ROE(5y)-38.25%
ROIC(3y)4.71%
ROIC(5y)4.14%
ROICexc(3y)4.91%
ROICexc(5y)4.33%
ROICexgc(3y)37.49%
ROICexgc(5y)37.97%
ROCE(3y)6.04%
ROCE(5y)5.31%
ROICexcg growth 3Y-26.83%
ROICexcg growth 5Y-17.53%
ROICexc growth 3Y-0.06%
ROICexc growth 5Y15.72%
OM growth 3Y-2.2%
OM growth 5Y-2.9%
PM growth 3Y57%
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-1.8%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 2.9% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.39% | ||
| Profit Quality | 320.35% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 0.46 |
F-Score6
WACC8.85%
ROIC/WACC0.43
Cap/Depr(3y)8.31%
Cap/Depr(5y)11.71%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.95%
Profit Quality(3y)352.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
EPS Next Y-57.78%
EPS Next 2Y-12.54%
EPS Next 3Y4.4%
EPS Next 5YN/A
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
Revenue Next Year0.2%
Revenue Next 2Y1.94%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
EBIT growth 1Y-13.18%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year308.8%
EBIT Next 3Y63.74%
EBIT Next 5Y35.2%
FCF growth 1Y31.83%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y17.68%
OCF growth 3Y3.39%
OCF growth 5Y8.49%