CARG Stock Overview
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$31.17|
|52 Week High||US$39.77|
|52 Week Low||US$22.63|
|1 Month Change||-3.95%|
|3 Month Change||-7.67%|
|1 Year Change||-2.44%|
|3 Year Change||-19.56%|
|5 Year Change||n/a|
|Change since IPO||13.02%|
Recent News & Updates
|CARG||US Interactive Media and Services||US Market|
Return vs Industry: CARG underperformed the US Interactive Media and Services industry which returned 36.5% over the past year.
Return vs Market: CARG underperformed the US Market which returned 13.7% over the past year.
|CARG Average Weekly Movement||5.8%|
|Interactive Media and Services Industry Average Movement||9.3%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
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.
About the Company
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 marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers.
CarGurus Fundamentals Summary
|CARG fundamental statistics|
Is CARG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CARG income statement (TTM)|
|Cost of Revenue||US$144.87m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.89|
|Net Profit Margin||13.72%|
How did CARG perform over the long term?See historical performance and comparison
Is CarGurus undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CARG ($31.17) is trading below our estimate of fair value ($38.88)
Significantly Below Fair Value: CARG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CARG is poor value based on its PE Ratio (35x) compared to the US Interactive Media and Services industry average (26.9x).
PE vs Market: CARG is poor value based on its PE Ratio (35x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: CARG is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: CARG is overvalued based on its PB Ratio (6.2x) compared to the US Interactive Media and Services industry average (3.1x).
How is CarGurus forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CARG's forecast earnings growth (10.7% per year) is above the savings rate (2%).
Earnings vs Market: CARG's earnings (10.7% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: CARG's earnings are forecast to grow, but not significantly.
Revenue vs Market: CARG's revenue (20.8% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: CARG's revenue (20.8% per year) is forecast to grow faster 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
How has CarGurus performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CARG has high quality earnings.
Growing Profit Margin: CARG's current net profit margins (13.7%) are higher than last year (11.7%).
Past Earnings Growth Analysis
Earnings Trend: CARG has become profitable over the past 5 years, growing earnings by 50.5% per year.
Accelerating Growth: CARG's earnings growth over the past year (59.8%) exceeds its 5-year average (50.5% per year).
Earnings vs Industry: CARG earnings growth over the past year (59.8%) exceeded the Interactive Media and Services industry -8.9%.
Return on Equity
High ROE: CARG's Return on Equity (15.7%) is considered low.
How is CarGurus's financial position?
Financial Position Analysis
Short Term Liabilities: CARG's short term assets ($441.5M) exceed its short term liabilities ($102.5M).
Long Term Liabilities: CARG's short term assets ($441.5M) exceed its long term liabilities ($73.6M).
Debt to Equity History and Analysis
Debt Level: CARG is debt free.
Reducing Debt: CARG has not had any debt for past 5 years.
Debt Coverage: CARG has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CARG has no debt, therefore coverage of interest payments is not a concern.
What is CarGurus's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CARG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CARG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CARG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CARG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CARG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jason Trevisan (46 yo)
.Mr. Jason M. Trevisan serves as Chief Executive Officer and Director at CarGurus Inc. since January 18, 2021. He served as the Chief Financial Officer at CarGurus Inc. since September 16, 2015 until Janua...
CEO Compensation Analysis
Compensation vs Market: Jason's total compensation ($USD3.40M) is below average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.
Experienced Management: CARG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: CARG's board of directors are considered experienced (3.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CarGurus, Inc.'s employee growth, exchange listings and data sources
- Name: CarGurus, Inc.
- Ticker: CARG
- Exchange: NasdaqGS
- Founded: 2005
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$3.668b
- Shares outstanding: 117.68m
- Website: https://www.cargurus.com
Number of Employees
- CarGurus, Inc.
- 2 Canal Park
- 4th Floor
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/19 00:12|
|End of Day Share Price||2022/01/18 00:00|
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.