CARS.COM INC (CARS) Stock Fundamental Analysis
USA - NYSE:CARS - US14575E1055 - Common Stock
10.81 USD
-0.14 (-1.28%)
11.15 USD
+0.34 (+3.15%)
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 an average financial health and profitability rating. 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.
CARS had a positive operating cash flow in the past year.
CARS had positive earnings in 4 of the past 5 years.
CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CARS's Return On Assets of 3.85% is fine compared to the rest of the industry. CARS outperforms 68.57% of its industry peers.
CARS has a better Return On Equity (8.49%) than 77.14% of its industry peers.
With a decent Return On Invested Capital value of 4.27%, CARS is doing good in the industry, outperforming 68.57% 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 13.23%.
| 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
Looking at the Profit Margin, with a value of 5.71%, CARS is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
In the last couple of years the Profit Margin of CARS has grown nicely.
CARS's Operating Margin of 7.38% is fine compared to the rest of the industry. CARS outperforms 65.71% of its industry peers.
In the last couple of years the Operating Margin of CARS has declined.
With a Gross Margin value of 66.54%, CARS perfoms like the industry average, outperforming 54.29% 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.
The number of shares outstanding for CARS has been reduced compared to 5 years ago.
The debt/assets ratio for CARS has been reduced compared to a year ago.
2.2 Solvency
CARS has an Altman-Z score of 0.36. This is a bad value and indicates that CARS is not financially healthy and even has some risk of bankruptcy.
CARS's Altman-Z score of 0.36 is on the low side compared to the rest of the industry. CARS is outperformed by 60.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.40, CARS is in the better half of the industry, outperforming 70.00% 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.
CARS has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: CARS underperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.45
WACC9.42%
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 48.57% 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's Quick ratio of 1.82 is in line compared to the rest of the industry. CARS outperforms 48.57% of 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%.
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 4.35% 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)-20.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
3.2 Future
CARS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.63% yearly.
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-37.9%
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
EPS Next 5YN/A
Revenue Next Year0.04%
Revenue Next 2Y1.51%
Revenue Next 3Y2%
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
With a Price/Earnings ratio of 23.50, CARS is valued on the expensive side.
Based on the Price/Earnings ratio, CARS is valued a bit cheaper than 61.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, CARS is valued at the same level.
The Price/Forward Earnings ratio is 15.21, which indicates a correct valuation of CARS.
CARS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CARS is cheaper than 61.43% of the companies in the same industry.
CARS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 15.21 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than CARS, based on the Enterprise Value to EBITDA ratio.
CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
CARS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.81
-0.14 (-1.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.23%
Inst Owner Change5.82%
Ins Owners3.73%
Ins Owner Change4.84%
Market Cap664.27M
Revenue(TTM)719.15M
Net Income(TTM)41.02M
Analysts80
Price Target17.05 (57.72%)
Short Float %11.68%
Short Ratio6.78
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)0.29%
PT rev (3m)0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.05%
EPS NY rev (1m)1.94%
EPS NY rev (3m)47.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 15.21 | ||
| P/S | 0.93 | ||
| P/FCF | 4.95 | ||
| P/OCF | 4.76 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.95 |
EPS(TTM)0.46
EY4.26%
EPS(NY)0.71
Fwd EY6.57%
FCF(TTM)2.18
FCFY20.21%
OCF(TTM)2.27
OCFY21%
SpS11.68
BVpS7.86
TBVpS-3.9
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9.02
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 | 0.36 |
F-Score7
WACC9.42%
ROIC/WACC0.45
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-37.9%
EPS Next 2Y-0.65%
EPS Next 3Y7.63%
EPS Next 5YN/A
Revenue 1Y (TTM)4.35%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%1.07%
Revenue Next Year0.04%
Revenue Next 2Y1.51%
Revenue Next 3Y2%
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 23.5 and the Price/Book (PB) ratio is 1.37.
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%.