CARS.COM INC (CARS) Fundamental Analysis & Valuation
NYSE:CARS • US14575E1055
Current stock price
10.305 USD
+0.13 (+1.23%)
Last:
This CARS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CARS Profitability Analysis
1.1 Basic Checks
- In the past year CARS was profitable.
- CARS had a positive operating cash flow in the past year.
- Each year in the past 5 years CARS has been profitable.
- CARS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CARS (1.89%) is comparable to the rest of the industry.
- CARS's Return On Equity of 4.24% is fine compared to the rest of the industry. CARS outperforms 60.87% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.33%, CARS is in the better half of the industry, outperforming 65.22% 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 10.87%.
- The 3 year average ROIC (3.91%) for CARS is below the current ROIC(4.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.24% | ||
| ROIC | 4.33% |
ROA(3y)5.44%
ROA(5y)3.81%
ROE(3y)12.58%
ROE(5y)8.98%
ROIC(3y)3.91%
ROIC(5y)4.08%
1.3 Margins
- With a Profit Margin value of 2.77%, CARS perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
- CARS's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.33%, CARS is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- CARS's Operating Margin has improved in the last couple of years.
- CARS's Gross Margin of 66.72% is fine compared to the rest of the industry. CARS outperforms 60.87% of its industry peers.
- CARS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 2.77% | ||
| GM | 66.72% |
OM growth 3Y-6.67%
OM growth 5Y9.03%
PM growth 3Y1.77%
PM growth 5YN/A
GM growth 3Y-1.02%
GM growth 5Y-1.06%
2. CARS Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARS 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 a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.35, we must say that CARS is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of CARS (0.35) is comparable to the rest of the industry.
- CARS has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as CARS would need 3.06 years to pay back of all of its debts.
- CARS has a better Debt to FCF ratio (3.06) than 66.67% of its industry peers.
- CARS has a Debt/Equity ratio of 0.96. This is a neutral value indicating CARS is somewhat dependend on debt financing.
- CARS has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: CARS underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.66
WACC6.53%
2.3 Liquidity
- CARS has a Current Ratio of 1.87. This is a normal value and indicates that CARS is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.87, CARS perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- A Quick Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.87, CARS is in line with its industry, outperforming 53.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. CARS Growth Analysis
3.1 Past
- CARS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.56%.
- Measured over the past years, CARS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.85% on average per year.
- The Revenue has been growing slightly by 0.57% in the past year.
- CARS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.73% yearly.
EPS 1Y (TTM)-55.56%
EPS 3Y-23.93%
EPS 5Y-20.85%
EPS Q2Q%-53.85%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y3.42%
Revenue growth 5Y5.73%
Sales Q2Q%1.92%
3.2 Future
- The Earnings Per Share is expected to grow by 48.87% 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 2.70% yearly.
EPS Next Y136.94%
EPS Next 2Y67.86%
EPS Next 3Y48.87%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.23%
Revenue Next 5Y2.7%
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. CARS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.20 indicates a quite expensive valuation of CARS.
- CARS's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of CARS to the average of the S&P500 Index (27.38), we can say CARS is valued inline with the index average.
- With a Price/Forward Earnings ratio of 13.59, CARS is valued correctly.
- 66.67% of the companies in the same industry are more expensive than CARS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 38.20. CARS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.2 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CARS is valued a bit cheaper than the industry average as 79.71% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARS indicates a rather cheap valuation: CARS is cheaper than 98.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.1 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of CARS may justify a higher PE ratio.
- A more expensive valuation may be justified as CARS's earnings are expected to grow with 48.87% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y67.86%
EPS Next 3Y48.87%
5. CARS Dividend Analysis
5.1 Amount
- No dividends for CARS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CARS Fundamentals: All Metrics, Ratios and Statistics
NYSE:CARS (4/16/2026, 2:04:55 PM)
10.305
+0.13 (+1.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners99.46%
Inst Owner Change-0.03%
Ins Owners5.13%
Ins Owner Change15.51%
Market Cap604.29M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target14.28 (38.57%)
Short Float %16.02%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.11%
Min EPS beat(2)-46.11%
Max EPS beat(2)-24.1%
EPS beat(4)1
Avg EPS beat(4)-36.74%
Min EPS beat(4)-127.23%
Max EPS beat(4)50.47%
EPS beat(8)4
Avg EPS beat(8)38.2%
EPS beat(12)6
Avg EPS beat(12)134.85%
EPS beat(16)8
Avg EPS beat(16)98.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-1.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-1.72%
Revenue beat(8)0
Avg Revenue beat(8)-2.43%
Revenue beat(12)0
Avg Revenue beat(12)-2.19%
Revenue beat(16)0
Avg Revenue beat(16)-2.02%
PT rev (1m)-16.6%
PT rev (3m)-15.88%
EPS NQ rev (1m)8.03%
EPS NQ rev (3m)-11.95%
EPS NY rev (1m)4.94%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.2 | ||
| Fwd PE | 13.59 | ||
| P/S | 0.84 | ||
| P/FCF | 4.1 | ||
| P/OCF | 3.99 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)0.32
EY3.11%
EPS(NY)0.76
Fwd EY7.36%
FCF(TTM)2.51
FCFY24.38%
OCF(TTM)2.59
OCFY25.09%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.24
PEG (5Y)N/A
Graham Number7.617 (-26.08%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.24% | ||
| ROCE | 6.35% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 20.69% | ||
| OM | 8.33% | ||
| PM (TTM) | 2.77% | ||
| GM | 66.72% | ||
| FCFM | 20.37% |
ROA(3y)5.44%
ROA(5y)3.81%
ROE(3y)12.58%
ROE(5y)8.98%
ROIC(3y)3.91%
ROIC(5y)4.08%
ROICexc(3y)4.11%
ROICexc(5y)4.27%
ROICexgc(3y)19.99%
ROICexgc(5y)32.47%
ROCE(3y)5.73%
ROCE(5y)5.98%
ROICexgc growth 3Y-29.55%
ROICexgc growth 5Y-3.31%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y15.91%
OM growth 3Y-6.67%
OM growth 5Y9.03%
PM growth 3Y1.77%
PM growth 5YN/A
GM growth 3Y-1.02%
GM growth 5Y-1.06%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 4.67% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.7% | ||
| Profit Quality | 734.85% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 0.35 |
F-Score6
WACC6.53%
ROIC/WACC0.66
Cap/Depr(3y)2.91%
Cap/Depr(5y)9.69%
Cap/Sales(3y)0.4%
Cap/Sales(5y)1.46%
Profit Quality(3y)386.5%
Profit Quality(5y)578.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-55.56%
EPS 3Y-23.93%
EPS 5Y-20.85%
EPS Q2Q%-53.85%
EPS Next Y136.94%
EPS Next 2Y67.86%
EPS Next 3Y48.87%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y3.42%
Revenue growth 5Y5.73%
Sales Q2Q%1.92%
Revenue Next Year1.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.23%
Revenue Next 5Y2.7%
EBIT growth 1Y12.41%
EBIT growth 3Y-3.48%
EBIT growth 5Y15.27%
EBIT Next Year224.63%
EBIT Next 3Y51.55%
EBIT Next 5Y30.03%
FCF growth 1Y-1.45%
FCF growth 3Y10.64%
FCF growth 5Y3.87%
OCF growth 1Y-0.58%
OCF growth 3Y5.67%
OCF growth 5Y1.81%
CARS.COM INC / CARS Fundamental Analysis FAQ
What is the fundamental rating for CARS stock?
ChartMill assigns a fundamental rating of 5 / 10 to CARS.
What is the valuation status of CARS.COM INC (CARS) stock?
ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.
How profitable is CARS.COM INC (CARS) stock?
CARS.COM INC (CARS) has a profitability rating of 7 / 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 32.2 and the Price/Book (PB) ratio is 1.28.
Can you provide the financial health for CARS stock?
The financial health rating of CARS.COM INC (CARS) is 4 / 10.