CARS.COM INC (CARS) Stock Fundamental Analysis
NYSE:CARS - US14575E1055 - Common Stock
13.17 USD
+0.07 (+0.53%)
13.17 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CARS had positive earnings in the past year.
CARS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.85%, CARS is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
The Return On Equity of CARS (8.49%) is better than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.27%, CARS is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARS is significantly below the industry average of 12.61%.
| 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 65.71% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
CARS's Operating Margin of 7.38% is fine compared to the rest of the industry. CARS outperforms 65.71% of its industry peers.
CARS's Operating Margin has declined in the last couple of years.
CARS has a Gross Margin (66.54%) 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 | 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.
Compared to 1 year ago, CARS has less shares outstanding
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
Based on the Altman-Z score of 0.50, we must say that CARS is in the distress zone and has some risk of bankruptcy.
CARS's Altman-Z score of 0.50 is on the low side compared to the rest of the industry. CARS is outperformed by 61.43% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.40, CARS is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
CARS has a Debt/Equity ratio of 0.94. This is a neutral value indicating CARS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, CARS is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.49
WACC8.75%
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 42.86% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a Quick ratio (1.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.57% over the past year.
CARS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.33% yearly.
Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.68% in the last year.
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
The Earnings Per Share is expected to grow by 37.00% on average over the next years. This is a very strong growth
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-36.6%
EPS Next 2Y3.08%
EPS Next 3Y37%
EPS Next 5YN/A
Revenue Next Year0.04%
Revenue Next 2Y1.47%
Revenue Next 3Y1.91%
Revenue Next 5Y2.29%
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
With a Price/Earnings ratio of 21.24, CARS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 67.14% of the companies listed in the same industry.
CARS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.22, CARS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 62.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, CARS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 95.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.03 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CARS's earnings are expected to grow with 37.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.08%
EPS Next 3Y37%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.17
+0.07 (+0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.31%
Inst Owner Change-1%
Ins Owners3.67%
Ins Owner Change21.21%
Market Cap809.30M
Analysts80
Price Target15.3 (16.17%)
Short Float %8.69%
Short Ratio5.56
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)-9.55%
PT rev (3m)-18.92%
EPS NQ rev (1m)31.58%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)50.17%
EPS NY rev (3m)-40.33%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-4.43%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 17.22 | ||
| P/S | 1.13 | ||
| P/FCF | 6.03 | ||
| P/OCF | 5.8 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.85 |
EPS(TTM)0.62
EY4.71%
EPS(NY)0.77
Fwd EY5.81%
FCF(TTM)2.18
FCFY16.59%
OCF(TTM)2.27
OCFY17.24%
SpS11.68
BVpS7.86
TBVpS-3.9
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 0.5 |
F-Score7
WACC8.75%
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)67.57%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-35.29%
EPS Next Y-36.6%
EPS Next 2Y3.08%
EPS Next 3Y37%
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 Year306.3%
EBIT Next 3Y63.74%
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%