CARS.COM INC (CARS) Stock Fundamental Analysis
USA - NYSE:CARS - US14575E1055 - Common Stock
11.3 USD
+0.3 (+2.73%)
11.3 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CARS. CARS was compared to 70 industry peers in the Interactive Media & Services industry. CARS has only an average score on both its financial health and profitability. CARS is not valued too expensively and it also shows a decent 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.
CARS had positive earnings in 4 of the past 5 years.
In the past 5 years CARS always reported a positive cash flow from operatings.
1.2 Ratios
CARS's Return On Assets of 3.85% is fine compared to the rest of the industry. CARS outperforms 67.14% of its industry peers.
With a decent Return On Equity value of 8.49%, CARS is doing good in the industry, outperforming 74.29% of the companies in the same industry.
CARS has a better Return On Invested Capital (4.27%) than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CARS is significantly below the industry average of 13.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 8.49% | ||
| ROIC | 4.27% |
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 (5.71%) than 67.14% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
CARS has a better Operating Margin (7.38%) than 67.14% of its industry peers.
CARS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 66.54%, CARS is in line with its industry, outperforming 55.71% of the companies in the same industry.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.38% | ||
| PM (TTM) | 5.71% | ||
| GM | 66.54% |
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.
CARS has less shares outstanding than it did 1 year ago.
CARS has less shares outstanding than it did 5 years ago.
CARS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.37, we must say that CARS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.37, CARS is doing worse than 60.00% of the companies in the same industry.
CARS has a debt to FCF ratio of 3.40. This is a good value and a sign of high solvency as CARS would need 3.40 years to pay back of all of its debts.
CARS's Debt to FCF ratio of 3.40 is fine compared to the rest of the industry. CARS outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that CARS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, CARS is doing worse than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.44
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a Current ratio (1.82) which is in line with its industry peers.
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.
Looking at the Quick ratio, with a value of 1.82, CARS is in line with its industry, outperforming 47.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
CARS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.57%, which is quite impressive.
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 0.68%.
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)67.57%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.09%
3.2 Future
Based on estimates for the next years, CARS will show a very strong growth in Earnings Per Share. The EPS will grow by 25.44% on average per year.
Based on estimates for the next years, CARS will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-39.08%
EPS Next 2Y-1.13%
EPS Next 3Y25.44%
EPS Next 5YN/A
Revenue Next Year0.04%
Revenue Next 2Y1.47%
Revenue Next 3Y1.91%
Revenue Next 5Y2.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.23.
Based on the Price/Earnings ratio, CARS is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.91, CARS is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.06, which indicates a correct valuation of CARS.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, CARS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CARS is valued cheaper than 98.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.17 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
CARS's earnings are expected to grow with 25.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.13%
EPS Next 3Y25.44%
5. Dividend
5.1 Amount
No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.3
+0.3 (+2.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.23%
Inst Owner Change-0.4%
Ins Owners3.73%
Ins Owner Change5.27%
Market Cap694.38M
Revenue(TTM)717.85M
Net Income(TTM)41.02M
Analysts80
Price Target17 (50.44%)
Short Float %11.68%
Short Ratio7.88
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)-38.38%
Min EPS beat(2)-127.23%
Max EPS beat(2)50.47%
EPS beat(4)3
Avg EPS beat(4)101.11%
Min EPS beat(4)-127.23%
Max EPS beat(4)399.11%
EPS beat(8)4
Avg EPS beat(8)39.89%
EPS beat(12)7
Avg EPS beat(12)133.88%
EPS beat(16)9
Avg EPS beat(16)98.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-2.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-2.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-2.13%
Revenue beat(16)0
Avg Revenue beat(16)-2.03%
PT rev (1m)0%
PT rev (3m)0.5%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)35.96%
EPS NY rev (1m)-3.91%
EPS NY rev (3m)44.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 16.06 | ||
| P/S | 0.97 | ||
| P/FCF | 5.17 | ||
| P/OCF | 4.98 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)0.62
EY5.49%
EPS(NY)0.7
Fwd EY6.23%
FCF(TTM)2.18
FCFY19.33%
OCF(TTM)2.27
OCFY20.09%
SpS11.68
BVpS7.86
TBVpS-3.9
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 8.49% | ||
| ROCE | 5.48% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 19.17% | ||
| OM | 7.38% | ||
| PM (TTM) | 5.71% | ||
| GM | 66.54% | ||
| FCFM | 18.7% |
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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 5.03% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.79% | ||
| Profit Quality | 327.27% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 0.37 |
F-Score7
WACC9.64%
ROIC/WACC0.44
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)67.57%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-35.29%
EPS Next Y-39.08%
EPS Next 2Y-1.13%
EPS Next 3Y25.44%
EPS Next 5YN/A
Revenue 1Y (TTM)0.68%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.09%
Revenue Next Year0.04%
Revenue Next 2Y1.47%
Revenue Next 3Y1.91%
Revenue Next 5Y2.29%
EBIT growth 1Y2.61%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year308.82%
EBIT Next 3Y63.53%
EBIT Next 5Y35.71%
FCF growth 1Y2.63%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y-2.05%
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 5 / 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 18.23 and the Price/Book (PB) ratio is 1.44.
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%.