CARS.COM INC (CARS) Stock Fundamental Analysis
USA - NYSE:CARS - US14575E1055 - Common Stock
12.72 USD
-0.65 (-4.86%)
12.72 USD
0 (0%)
Overall CARS gets a fundamental rating of 5 out of 10. We evaluated CARS against 69 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of CARS get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
The Return On Assets of CARS (3.85%) is better than 66.67% of its industry peers.
CARS's Return On Equity of 8.49% is fine compared to the rest of the industry. CARS outperforms 73.91% of its industry peers.
The Return On Invested Capital of CARS (4.27%) is better than 71.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARS is significantly below the industry average of 12.98%.
| 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
The Profit Margin of CARS (5.71%) is better than 68.12% 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 66.67% of its industry peers.
In the last couple of years the Operating Margin of CARS has declined.
CARS has a Gross Margin (66.54%) 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 | 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
CARS has less shares outstanding than it did 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 0.48. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.48, CARS is doing worse than 63.77% of the companies in the same industry.
The Debt to FCF ratio of CARS is 3.40, which is a good value as it means it would take CARS, 3.40 years of fcf income to pay off all of its debts.
CARS's Debt to FCF ratio of 3.40 is fine compared to the rest of the industry. CARS outperforms 68.12% of its industry peers.
CARS has a Debt/Equity ratio of 0.94. This is a neutral value indicating CARS is somewhat dependend on debt financing.
The Debt to Equity ratio of CARS (0.94) is worse than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.47
WACC9%
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 46.38% 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
The Earnings Per Share has grown by an impressive 67.57% over the past year.
The earnings per share for CARS have been decreasing by -14.33% on average. This is quite bad
Looking at the last year, CARS shows a small growth in Revenue. The Revenue has grown by 0.68% in the last year.
CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
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
CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.52, the valuation of CARS can be described as rather expensive.
CARS's Price/Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 63.77% of the companies in the same industry.
CARS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.63, the valuation of CARS can be described as correct.
Based on the Price/Forward Earnings ratio, CARS is valued a bit cheaper than 63.77% of the companies in the same industry.
CARS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaper than 85.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CARS is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | 7.7 |
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 |
12.72
-0.65 (-4.86%)
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 Change6.13%
Market Cap781.64M
Analysts80
Price Target17 (33.65%)
Short Float %11.16%
Short Ratio7.68
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)0.5%
PT rev (3m)0.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.73%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 16.63 | ||
| P/S | 1.09 | ||
| P/FCF | 5.82 | ||
| P/OCF | 5.6 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.7 |
EPS(TTM)0.62
EY4.87%
EPS(NY)0.77
Fwd EY6.01%
FCF(TTM)2.18
FCFY17.17%
OCF(TTM)2.27
OCFY17.85%
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 | 0.48 |
F-Score7
WACC9%
ROIC/WACC0.47
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%