CARS.COM INC (CARS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARS - US14575E1055 - Common Stock
12.71 USD
-0.07 (-0.55%)
12.71 USD
0 (0%)
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
CARS had positive earnings in the past year.
In the past year CARS had a positive cash flow from operations.
Of the past 5 years CARS 4 years were profitable.
Each year in the past 5 years CARS had a positive operating cash flow.
1.2 Ratios
CARS's Return On Assets of 2.80% is fine compared to the rest of the industry. CARS outperforms 67.14% of its industry peers.
The Return On Equity of CARS (6.27%) is better than 72.86% of its industry peers.
CARS has a Return On Invested Capital of 4.76%. This is in the better half of the industry: CARS outperforms 70.00% of its industry peers.
CARS had an Average Return On Invested Capital over the past 3 years of 4.71%. This is significantly below the industry average of 14.04%.
The last Return On Invested Capital (4.76%) for CARS is above the 3 year average (4.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.27% | ||
| ROIC | 4.76% |
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's Profit Margin of 4.16% is fine compared to the rest of the industry. CARS outperforms 62.86% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
CARS has a better Operating Margin (8.10%) than 67.14% of its industry peers.
In the last couple of years the Operating Margin of CARS has declined.
CARS has a Gross Margin (67.07%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CARS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 4.16% | ||
| GM | 67.07% |
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.
The number of shares outstanding for CARS has been reduced compared to 5 years ago.
Compared to 1 year ago, CARS has an improved debt to assets ratio.
2.2 Solvency
CARS has an Altman-Z score of 0.49. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
CARS has a Altman-Z score of 0.49. This is in the lower half of the industry: CARS underperforms 60.00% of its industry peers.
CARS has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as CARS would need 3.23 years to pay back of all of its debts.
CARS has a better Debt to FCF ratio (3.23) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
CARS has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: CARS underperforms 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.49
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, CARS is in line with its industry, outperforming 50.00% of the companies in the same industry.
CARS has a Quick Ratio of 1.82. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting its short term obligations.
CARS has a Quick ratio (1.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.69%.
The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
The Revenue has been growing slightly by 3.46% on average over the past years.
EPS 1Y (TTM)-20.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
3.2 Future
The Earnings Per Share is expected to grow by 14.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-41.92%
EPS Next 2Y2.91%
EPS Next 3Y14.75%
EPS Next 5YN/A
Revenue Next Year0.01%
Revenue Next 2Y1.62%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.63, which means the current valuation is very expensive for CARS.
CARS's Price/Earnings is on the same level as the industry average.
CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.55.
A Price/Forward Earnings ratio of 16.67 indicates a correct valuation of CARS.
61.43% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CARS to the average of the S&P500 Index (23.78), we can say CARS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
CARS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CARS is cheaper than 81.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 95.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
The decent profitability rating of CARS may justify a higher PE ratio.
CARS's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.91%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
12.71
-0.07 (-0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.36%
Inst Owner Change5.89%
Ins Owners3.83%
Ins Owner Change-2.27%
Market Cap760.19M
Revenue(TTM)719.77M
Net Income(TTM)29.96M
Analysts80
Price Target16.98 (33.6%)
Short Float %12.92%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)13.19%
Min EPS beat(2)-24.1%
Max EPS beat(2)50.47%
EPS beat(4)2
Avg EPS beat(4)-4.7%
Min EPS beat(4)-127.23%
Max EPS beat(4)82.07%
EPS beat(8)4
Avg EPS beat(8)40.66%
EPS beat(12)7
Avg EPS beat(12)143.4%
EPS beat(16)8
Avg EPS beat(16)97.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.38%
Revenue beat(12)0
Avg Revenue beat(12)-2.12%
Revenue beat(16)0
Avg Revenue beat(16)-2.03%
PT rev (1m)-0.43%
PT rev (3m)-0.14%
EPS NQ rev (1m)6.97%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)-6.46%
EPS NY rev (3m)-8.38%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 16.67 | ||
| P/S | 1.06 | ||
| P/FCF | 5.44 | ||
| P/OCF | 5.26 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)0.46
EY3.62%
EPS(NY)0.76
Fwd EY6%
FCF(TTM)2.34
FCFY18.37%
OCF(TTM)2.42
OCFY19.01%
SpS12.03
BVpS7.98
TBVpS-3.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.27% | ||
| ROCE | 6.11% | ||
| ROIC | 4.76% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 23.2% | ||
| OM | 8.1% | ||
| PM (TTM) | 4.16% | ||
| GM | 67.07% | ||
| FCFM | 19.41% |
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%
ROICexgc growth 3Y-26.83%
ROICexgc 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 4.85% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.27% | ||
| Profit Quality | 466.23% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 0.49 |
F-Score6
WACC9.76%
ROIC/WACC0.49
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)-20.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-57.14%
EPS Next Y-41.92%
EPS Next 2Y2.91%
EPS Next 3Y14.75%
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year0.01%
Revenue Next 2Y1.62%
Revenue Next 3Y2.03%
Revenue Next 5Y2.25%
EBIT growth 1Y19.57%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year310.92%
EBIT Next 3Y64.49%
EBIT Next 5Y35.33%
FCF growth 1Y13.74%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y12.21%
OCF growth 3Y3.39%
OCF growth 5Y8.49%
CARS.COM INC / CARS FAQ
What is the fundamental rating for CARS stock?
ChartMill assigns a fundamental rating of 4 / 10 to CARS.
What is the valuation status for CARS stock?
ChartMill assigns a valuation rating of 5 / 10 to CARS.COM INC (CARS). This can be considered as Fairly Valued.
What is the profitability of CARS stock?
CARS.COM INC (CARS) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CARS.COM INC (CARS) stock?
The Price/Earnings (PE) ratio for CARS.COM INC (CARS) is 27.63 and the Price/Book (PB) ratio is 1.59.
How sustainable is the dividend of CARS.COM INC (CARS) stock?
The dividend rating of CARS.COM INC (CARS) is 0 / 10 and the dividend payout ratio is 0%.