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Market Cap

US$3.7b

Last Updated

2021/09/22 00:23 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 and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CARG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

CARG

-2.9%

US Interactive Media and Services

-1.8%

US Market


1 Year Return

31.7%

CARG

66.3%

US Interactive Media and Services

31.5%

US Market

Return vs Industry: CARG underperformed the US Interactive Media and Services industry which returned 69.5% over the past year.

Return vs Market: CARG underperformed the US Market which returned 33% over the past year.


Shareholder returns

CARGIndustryMarket
7 Day-0.1%-2.9%-1.8%
30 Day16.0%1.1%-0.9%
90 Day14.2%7.9%0.8%
1 Year31.7%31.7%66.7%66.3%33.5%31.5%
3 Year-42.7%-42.7%111.6%111.3%57.5%47.8%
5 Yearn/a188.5%188.0%119.1%95.3%

Long-Term 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

Valuation

Is CarGurus undervalued compared to its fair value and its price relative to the market?

33.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CARG ($31.11) is trading above our estimate of fair value ($29.87)

Significantly Below Fair Value: CARG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CARG is good value based on its PE Ratio (33.8x) compared to the US Interactive Media and Services industry average (40.4x).

PE vs Market: CARG is poor value based on its PE Ratio (33.8x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: CARG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CARG is overvalued based on its PB Ratio (6.6x) compared to the US Interactive Media and Services industry average (3.9x).


Future Growth

How is CarGurus forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARG's forecast earnings growth (13.7% per year) is above the savings rate (2%).

Earnings vs Market: CARG's earnings (13.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: CARG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CARG's revenue (14.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CARG's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CARG's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

How has CarGurus performed over the past 5 years?

53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARG has high quality earnings.

Growing Profit Margin: CARG's current net profit margins (15.7%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: CARG has become profitable over the past 5 years, growing earnings by 53% per year.

Accelerating Growth: CARG's earnings growth over the past year (149.3%) exceeds its 5-year average (53% per year).

Earnings vs Industry: CARG earnings growth over the past year (149.3%) exceeded the Interactive Media and Services industry -5.3%.


Return on Equity

High ROE: CARG's Return on Equity (17.3%) is considered low.


Financial Health

How is CarGurus's financial position?


Financial Position Analysis

Short Term Liabilities: CARG's short term assets ($388.8M) exceed its short term liabilities ($103.5M).

Long Term Liabilities: CARG's short term assets ($388.8M) exceed its long term liabilities ($76.9M).


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


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?

2.6yrs

Average management tenure


CEO

Jason Trevisan (46 yo)

0.67

Tenure

US$3,397,318

Compensation

.Mr. Jason M. Trevisan serves as Chief Executive Officer and Director at CarGurus Inc. since January 18, 2021. He served as the Chief Financial Officer at CarGurus Inc. since September 16, 2015 until Janua...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD3.40M) is below average for companies of similar size in the US market ($USD5.25M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CARG's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: CARG's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CARG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


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$3.651b
  • Shares outstanding: 117.37m
  • Website: https://www.cargurus.com

Number of Employees


Location

  • CarGurus, Inc.
  • 2 Canal Park
  • 4th Floor
  • Cambridge
  • Massachusetts
  • 2141
  • United States

Listings


Biography

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive mar...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:23
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.