CARS.COM INC (CARS) Stock Fundamental Analysis
NYSE:CARS - New York Stock Exchange, Inc. - US14575E1055 - Common Stock - Currency: USD
CARS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CARS was profitable.
CARS had a positive operating cash flow in the past year.
Of the past 5 years CARS 4 years were profitable.
CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CARS (4.19%) is better than 69.01% of its industry peers.
CARS's Return On Equity of 9.27% is fine compared to the rest of the industry. CARS outperforms 78.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.78%, CARS is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARS is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROIC | 3.78% |
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 (6.32%) than 74.65% of its industry peers.
CARS's Profit Margin has improved in the last couple of years.
CARS has a Operating Margin of 6.58%. This is in the better half of the industry: CARS outperforms 69.01% of its industry peers.
In the last couple of years the Operating Margin of CARS has declined.
CARS's Gross Margin of 66.62% is in line compared to the rest of the industry. CARS outperforms 53.52% of its industry peers.
CARS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARS is destroying value.
CARS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CARS has less shares outstanding
CARS has a better debt/assets ratio than last year.
2.2 Solvency
CARS has an Altman-Z score of 0.32. 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 0.32. This is in the lower half of the industry: CARS underperforms 60.56% of its industry peers.
The Debt to FCF ratio of CARS is 3.13, which is a good value as it means it would take CARS, 3.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.13, CARS is doing good in the industry, outperforming 66.20% of the companies in the same industry.
CARS has a Debt/Equity ratio of 0.93. This is a neutral value indicating CARS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, CARS is not doing good in the industry: 77.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.45
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.65 indicates that CARS should not have too much problems paying its short term obligations.
CARS has a Current ratio of 1.65. This is in the lower half of the industry: CARS underperforms 61.97% of its industry peers.
CARS has a Quick Ratio of 1.65. 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 of 1.65. This is in the lower half of the industry: CARS underperforms 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.69%.
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 2.24%.
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)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 22.26% 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 1.97% on average per year.
EPS Next Y6.25%
EPS Next 2Y33.6%
EPS Next 3Y22.26%
EPS Next 5YN/A
Revenue Next Year0.94%
Revenue Next 2Y2.04%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
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
With a Price/Earnings ratio of 15.65, CARS is valued correctly.
Based on the Price/Earnings ratio, CARS is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.60, CARS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.28, the valuation of CARS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CARS is valued cheaper than 85.92% 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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaper than 88.73% 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 97.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.6 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CARS does not grow enough to justify the current Price/Earnings ratio.
CARS's earnings are expected to grow with 22.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.5
PEG (5Y)N/A
EPS Next 2Y33.6%
EPS Next 3Y22.26%
5. Dividend
5.1 Amount
No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.64
-0.1 (-0.93%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.95%
Inst Owner Change-2.98%
Ins Owners2.65%
Ins Owner Change16.65%
Market Cap669.15M
Analysts78.46
Price Target16.92 (59.02%)
Short Float %6.22%
Short Ratio3.98
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)-22.58%
Min EPS beat(2)-127.23%
Max EPS beat(2)82.07%
EPS beat(4)3
Avg EPS beat(4)103.55%
Min EPS beat(4)-127.23%
Max EPS beat(4)399.11%
EPS beat(8)4
Avg EPS beat(8)182.52%
EPS beat(12)7
Avg EPS beat(12)136.4%
EPS beat(16)9
Avg EPS beat(16)96.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-2.08%
Revenue beat(8)0
Avg Revenue beat(8)-2.31%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.9%
PT rev (1m)-10.36%
PT rev (3m)-15.68%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)28.42%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 8.28 | ||
| P/S | 0.93 | ||
| P/FCF | 4.6 | ||
| P/OCF | 4.51 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)0.68
EY6.39%
EPS(NY)1.29
Fwd EY12.08%
FCF(TTM)2.31
FCFY21.73%
OCF(TTM)2.36
OCFY22.19%
SpS11.42
BVpS7.79
TBVpS-3.92
PEG (NY)2.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 9.27% | ||
| ROCE | 4.85% | ||
| ROIC | 3.78% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 17.94% | ||
| OM | 6.58% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.62% | ||
| FCFM | 20.25% |
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-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 2.9% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.39% | ||
| Profit Quality | 320.35% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 0.32 |
F-Score6
WACC8.35%
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)-56.69%
EPS 3Y-22.72%
EPS 5Y-14.33%
EPS Q2Q%-400%
EPS Next Y6.25%
EPS Next 2Y33.6%
EPS Next 3Y22.26%
EPS Next 5YN/A
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.86%
Revenue growth 5Y3.46%
Sales Q2Q%-0.64%
Revenue Next Year0.94%
Revenue Next 2Y2.04%
Revenue Next 3Y2.29%
Revenue Next 5Y1.97%
EBIT growth 1Y-13.18%
EBIT growth 3Y2.55%
EBIT growth 5Y0.45%
EBIT Next Year308.8%
EBIT Next 3Y63.74%
EBIT Next 5Y35.2%
FCF growth 1Y31.83%
FCF growth 3Y7.97%
FCF growth 5Y13.27%
OCF growth 1Y17.68%
OCF growth 3Y3.39%
OCF growth 5Y8.49%