CARS.COM INC (CARS) Fundamental Analysis & Valuation

NYSE:CARS • US14575E1055

Current stock price

8.42 USD
+0.19 (+2.31%)
At close:
8.42 USD
0 (0%)
After Hours:

This CARS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

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.
  • In the past 5 years CARS has always been profitable.
  • In the past 5 years CARS always reported a positive cash flow from operatings.
CARS Yearly Net Income VS EBIT VS OCF VS FCFCARS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M -600M

1.2 Ratios

  • CARS's Return On Assets of 1.89% is in line compared to the rest of the industry. CARS outperforms 56.52% of its industry peers.
  • The Return On Equity of CARS (4.24%) is better than 62.32% of its industry peers.
  • CARS's Return On Invested Capital of 4.33% is fine compared to the rest of the industry. CARS outperforms 66.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CARS is significantly below the industry average of 11.10%.
  • The last Return On Invested Capital (4.33%) for CARS is above the 3 year average (3.91%), which is a sign of increasing profitability.
Industry RankSector 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%
CARS Yearly ROA, ROE, ROICCARS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150 -200

1.3 Margins

  • CARS has a Profit Margin of 2.77%. This is comparable to the rest of the industry: CARS outperforms 59.42% of its industry peers.
  • In the last couple of years the Profit Margin of CARS has grown nicely.
  • CARS has a better Operating Margin (8.33%) than 68.12% of its industry peers.
  • In the last couple of years the Operating Margin of CARS has grown nicely.
  • With a decent Gross Margin value of 66.72%, CARS is doing good in the industry, outperforming 60.87% of the companies in the same industry.
  • CARS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CARS Yearly Profit, Operating, Gross MarginsCARS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for CARS has been reduced compared to 1 year ago.
  • CARS has less shares outstanding than it did 5 years ago.
  • CARS has a worse debt/assets ratio than last year.
CARS Yearly Shares OutstandingCARS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
CARS Yearly Total Debt VS Total AssetsCARS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of 0.23, we must say that CARS is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of CARS (0.23) is comparable to the rest of the industry.
  • The Debt to FCF ratio of CARS is 3.06, which is a good value as it means it would take CARS, 3.06 years of fcf income to pay off all of its debts.
  • CARS has a better Debt to FCF ratio (3.06) than 68.12% 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.
  • The Debt to Equity ratio of CARS (0.96) is worse than 72.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 3.06
Altman-Z 0.23
ROIC/WACC0.69
WACC6.31%
CARS Yearly LT Debt VS Equity VS FCFCARS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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.
  • CARS's Current ratio of 1.87 is in line compared to the rest of the industry. CARS outperforms 52.17% of its industry peers.
  • A Quick Ratio of 1.87 indicates that CARS should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.87, CARS perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
CARS Yearly Current Assets VS Current LiabilitesCARS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CARS Growth Analysis

3.1 Past

  • The earnings per share for CARS have decreased strongly by -55.56% in the last year.
  • The earnings per share for CARS have been decreasing by -20.85% on average. This is quite bad
  • CARS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
  • Measured over the past years, CARS shows a small growth in Revenue. The Revenue has been growing by 5.73% on average per year.
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

  • Based on estimates for the next years, CARS will show a very strong growth in Earnings Per Share. The EPS will grow by 64.11% on average per year.
  • CARS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.23%
Revenue Next 5Y2.7%

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.
CARS Yearly Revenue VS EstimatesCARS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
CARS Yearly EPS VS EstimatesCARS Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

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7

4. CARS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 26.31, CARS can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of CARS is on the same level as its industry peers.
  • CARS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.54.
  • A Price/Forward Earnings ratio of 11.65 indicates a reasonable valuation of CARS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CARS indicates a somewhat cheap valuation: CARS is cheaper than 66.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, CARS is valued a bit cheaper.
Industry RankSector Rank
PE 26.31
Fwd PE 11.65
CARS Price Earnings VS Forward Price EarningsCARS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CARS is valued cheaper than 81.16% of the companies in the same industry.
  • CARS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CARS is cheaper than 98.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.35
EV/EBITDA 5.77
CARS Per share dataCARS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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.
  • CARS has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CARS's earnings are expected to grow with 64.11% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y63.83%
EPS Next 3Y64.11%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CARS Dividend Analysis

5.1 Amount

  • CARS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CARS Fundamentals: All Metrics, Ratios and Statistics

CARS.COM INC

NYSE:CARS (3/24/2026, 4:00:02 PM)

After market: 8.42 0 (0%)

8.42

+0.19 (+2.31%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-26
Earnings (Next)05-06
Inst Owners99.32%
Inst Owner Change-0.49%
Ins Owners4.26%
Ins Owner Change14.79%
Market Cap493.75M
Revenue(TTM)723.24M
Net Income(TTM)20.05M
Analysts78.46
Price Target17.12 (103.33%)
Short Float %15.6%
Short Ratio7.31
Dividend
Industry RankSector 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)0%
PT rev (3m)0.86%
EPS NQ rev (1m)-18.49%
EPS NQ rev (3m)-18.49%
EPS NY rev (1m)-2.75%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.13%
Valuation
Industry RankSector Rank
PE 26.31
Fwd PE 11.65
P/S 0.68
P/FCF 3.35
P/OCF 3.26
P/B 1.04
P/tB N/A
EV/EBITDA 5.77
EPS(TTM)0.32
EY3.8%
EPS(NY)0.72
Fwd EY8.58%
FCF(TTM)2.51
FCFY29.84%
OCF(TTM)2.59
OCFY30.71%
SpS12.33
BVpS8.06
TBVpS-3.78
PEG (NY)0.21
PEG (5Y)N/A
Graham Number7.62
Profitability
Industry RankSector 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 RankSector 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 0.23
F-Score6
WACC6.31%
ROIC/WACC0.69
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 Y125.78%
EPS Next 2Y63.83%
EPS Next 3Y64.11%
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 Year226.08%
EBIT Next 3Y51.84%
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.


Can you provide the valuation status for CARS.COM INC?

ChartMill assigns a valuation rating of 7 / 10 to CARS.COM INC (CARS). This can be considered as Undervalued.


Can you provide the profitability details for CARS.COM INC?

CARS.COM INC (CARS) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CARS stock?

The Earnings per Share (EPS) of CARS.COM INC (CARS) is expected to grow by 125.78% in the next year.


Is the dividend of CARS.COM INC sustainable?

The dividend rating of CARS.COM INC (CARS) is 0 / 10 and the dividend payout ratio is 0%.