CarGurus
Market Cap
US$2.3b
Last Updated
2020/10/30 03:55 UTC
Data Sources
Company Financials +
Executive Summary
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has CarGurus's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CARG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.8%
CARG
-3.8%
US Interactive Media and Services
-4.1%
US Market
1 Year Return
-42.7%
CARG
31.0%
US Interactive Media and Services
12.0%
US Market
Return vs Industry: CARG underperformed the US Interactive Media and Services industry which returned 31% over the past year.
Return vs Market: CARG underperformed the US Market which returned 12% over the past year.
Shareholder returns
| CARG | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.8% | -3.8% | -4.1% |
| 30 Day | -6.6% | 5.5% | -0.2% |
| 90 Day | -30.1% | 6.9% | 2.8% |
| 1 Year | -42.7%-42.7% | 31.1%31.0% | 14.6%12.0% |
| 3 Year | -35.8%-35.8% | 42.5%42.4% | 35.8%26.8% |
| 5 Year | n/a | 105.1%104.6% | 75.2%55.6% |
Price Volatility Vs. Market
How volatile is CarGurus's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Reflecting on CarGurus' (NASDAQ:CARG) Share Price Returns Over The Last Year2 weeks ago | Simply Wall St
What We Learned About CarGurus' (NASDAQ:CARG) CEO CompensationValuation
Is CarGurus undervalued compared to its fair value and its price relative to the market?
37.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CARG ($20.2) is trading below our estimate of fair value ($32.08)
Significantly Below Fair Value: CARG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CARG is poor value based on its PE Ratio (52.2x) compared to the US Interactive Media and Services industry average (32.5x).
PE vs Market: CARG is poor value based on its PE Ratio (52.2x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: CARG is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: CARG is overvalued based on its PB Ratio (7.7x) compared to the US Interactive Media and Services industry average (2.6x).
Next Steps
Future Growth
How is CarGurus forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
34.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CARG's forecast earnings growth (34.1% per year) is above the savings rate (2.2%).
Earnings vs Market: CARG's earnings (34.1% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CARG's revenue (12.4% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: CARG's revenue (12.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CARG's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has CarGurus performed over the past 5 years?
60.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CARG has high quality earnings.
Growing Profit Margin: CARG's current net profit margins (7.7%) are lower than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: CARG's earnings have grown significantly by 60.5% per year over the past 5 years.
Accelerating Growth: CARG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CARG had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-6.3%).
Return on Equity
High ROE: CARG's Return on Equity (14.7%) is considered low.
Next Steps
Financial Health
How is CarGurus's financial position?
Financial Position Analysis
Short Term Liabilities: CARG's short term assets ($216.1M) exceed its short term liabilities ($43.1M).
Long Term Liabilities: CARG's short term assets ($216.1M) exceed its long term liabilities ($68.4M).
Debt to Equity History and Analysis
Debt Level: CARG is debt free.
Reducing Debt: CARG has not had any debt for past 5 years.
Debt Coverage: CARG has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CARG has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is CarGurus's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CARG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CARG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CARG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CARG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CARG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
E. Steinert (56 yo)
14.75yrs
Tenure
US$2,680,111
Compensation
Mr. E. Langley Steinert founded Cargurus Inc. in 2006 and has been its Chief Executive Officer since 2006 and served as its President since June 2015 until February 2019. Mr. Steinert is a Venture Partner ...
CEO Compensation Analysis
Compensation vs Market: E.'s total compensation ($USD2.68M) is below average for companies of similar size in the US market ($USD4.53M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 14.75yrs | US$2.68m | 15.73% $ 358.9m | |
| COO & President | 1.58yrs | US$6.11m | 0.041% $ 936.8k | |
| CFO, President of International & Treasurer | 5.08yrs | US$5.89m | 0.16% $ 3.7m | |
| Chief Technology Officer | 1.75yrs | US$5.98m | 0.060% $ 1.4m | |
| Chief Marketing Officer | 1.75yrs | US$4.21m | 0.079% $ 1.8m | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel & Secretary | 3.17yrs | US$1.10m | 0.018% $ 408.5k | |
| Vice President of Sales Operations | 0.75yr | no data | no data | |
| VP of People & Talent | 4.58yrs | no data | no data | |
| Chief People Officer | 0.58yr | no data | no data | |
| Chief Product Officer | 1.75yrs | US$1.52m | 0.052% $ 1.2m | |
| Senior Vice President of Financial Planning & Analysis | 1.75yrs | no data | no data |
1.8yrs
Average Tenure
47yo
Average Age
Experienced Management: CARG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 14.75yrs | US$2.68m | 15.73% $ 358.9m | |
| Independent Non-Employee Director | 13.33yrs | US$189.99k | 0.22% $ 5.1m | |
| Independent Director | 2.17yrs | US$204.99k | 0.0063% $ 143.5k | |
| Independent Director | 2.58yrs | US$193.99k | 0.0035% $ 80.1k | |
| Independent Director | 2.33yrs | US$189.99k | 0.012% $ 267.5k | |
| Independent Non-Employee Director | 14.58yrs | US$193.99k | 0.27% $ 6.2m | |
| Non-Employee Director | 13.33yrs | US$196.99k | 0.067% $ 1.5m |
3.1yrs
Average Tenure
56yo
Average Age
Experienced Board: CARG's board of directors are considered experienced (3.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CarGurus, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CarGurus, Inc.
- Ticker: CARG
- Exchange: NasdaqGS
- Founded: 2005
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: US$2.282b
- Shares outstanding: 112.98m
- Website: https://www.cargurus.com
Number of Employees
Location
- CarGurus, Inc.
- 2 Canal Park
- 4th Floor
- Cambridge
- Massachusetts
- 2141
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CARG | NasdaqGS (Nasdaq Global Select) | Yes | Class A common stock | US | USD | Oct 2017 |
| 0C6 | DB (Deutsche Boerse AG) | Yes | Class A common stock | DE | EUR | Oct 2017 |
Biography
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. The company provides ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 03:55 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.