CarGurus
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
Rewards
PE ratio (33.8x) is below the Interactive Media and Services industry average (40.4x)
Risk Analysis
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
| CARG | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | -2.9% | -1.8% |
| 30 Day | 16.0% | 1.1% | -0.9% |
| 90 Day | 14.2% | 7.9% | 0.8% |
| 1 Year | 31.7%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 Year | n/a | 188.5%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
2 weeks ago | Simply Wall St
Calculating The Fair Value Of CarGurus, Inc. (NASDAQ:CARG)4 weeks ago | Simply Wall St
Despite delivering investors losses of 43% over the past 3 years, CarGurus (NASDAQ:CARG) has been growing its earnings1 month ago | Simply Wall St
Have Insiders Sold CarGurus, Inc. (NASDAQ:CARG) Shares Recently?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/22 00:23 |
| End of Day Share Price | 2021/09/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.