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CARG

CarGurusNasdaqGS:CARG Stock Report

Last Price

US$31.17

Market Cap

US$3.8b

7D

-5.9%

1Y

-2.4%

Updated

18 Jan, 2022

Data

Company Financials +
CARG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends0/6

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.

CarGurus Competitors

Alphabet

NasdaqGS:GOOG.L

US$1.9t

Meta Platforms

NasdaqGS:FB

US$923.3b

Cars.com

NYSE:CARS

US$1.1b

QuinStreet

NasdaqGS:QNST

US$882.0m

Price History & Performance

Summary of all time highs, changes and price drops for CarGurus
Historical stock prices
Current Share PriceUS$31.17
52 Week HighUS$39.77
52 Week LowUS$22.63
Beta1.74
1 Month Change-3.95%
3 Month Change-7.67%
1 Year Change-2.44%
3 Year Change-19.56%
5 Year Changen/a
Change since IPO13.02%

Recent News & Updates

Jan 18

CarGurus: In A Value Market, This Stock Shines

CarGurus, a software and advertising platform for car dealerships, has slowly crept out of its trouble spot. Shares have been resilient in the recent tech selloff, demonstrating that investors are perceiving its undervaluation. CarGurus is back in growth mode, due to the fact that dealerships are coming back to the platform as well as its recent purchase of CarOffer. The stock remains very cheaply valued at

Jan 04
If You Like EPS Growth Then Check Out CarGurus (NASDAQ:CARG) Before It's Too Late

If You Like EPS Growth Then Check Out CarGurus (NASDAQ:CARG) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Dec 20
CarGurus, Inc. (NASDAQ:CARG) Shares Could Be 29% Above Their Intrinsic Value Estimate

CarGurus, Inc. (NASDAQ:CARG) Shares Could Be 29% Above Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CarGurus, Inc...

Nov 22
We Think CarGurus (NASDAQ:CARG) Might Have The DNA Of A Multi-Bagger

We Think CarGurus (NASDAQ:CARG) Might Have The DNA Of A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Shareholder Returns

CARGUS Interactive Media and ServicesUS Market
7D-5.9%0.3%-0.3%
1Y-2.4%36.5%13.7%

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.

Price Volatility

Is CARG's price volatile compared to industry and market?
CARG volatility
CARG Average Weekly Movement5.8%
Interactive Media and Services Industry Average Movement9.3%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
2005827Jason Trevisanhttps://www.cargurus.com

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

How do CarGurus's earnings and revenue compare to its market cap?
CARG fundamental statistics
Market CapUS$3.76b
Earnings (TTM)US$104.78m
Revenue (TTM)US$763.58m

35.0x

P/E Ratio

4.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CARG income statement (TTM)
RevenueUS$763.58m
Cost of RevenueUS$144.87m
Gross ProfitUS$618.71m
ExpensesUS$513.94m
EarningsUS$104.78m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.89
Gross Margin81.03%
Net Profit Margin13.72%
Debt/Equity Ratio0%

How did CARG perform over the long term?

See historical performance and comparison

Valuation

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

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CARG ($31.94) is trading below our estimate of fair value ($38.89)

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 (35.9x) compared to the US Interactive Media and Services industry average (26.9x).

PE vs Market: CARG is poor value based on its PE Ratio (35.9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: CARG is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CARG is overvalued based on its PB Ratio (6.4x) compared to the US Interactive Media and Services industry average (3.1x).


Future Growth

How is CarGurus forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.7%

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


Past Performance

How has CarGurus performed over the past 5 years?

50.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARG has high quality earnings.

Growing Profit Margin: CARG's current net profit margins (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.


Financial Health

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.


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?

1.5yrs

Average management tenure


CEO

Jason Trevisan (46 yo)

1

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 ($USD3.40M) is below average for companies of similar size in the US market ($USD5.13M).

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 not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: CARG's board of directors are considered experienced (3.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CarGurus, Inc.'s 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
  • Implied Market Cap: US$3.759b
  • Shares outstanding: 117.68m
  • Website: https://www.cargurus.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 23:05
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
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.