NYSE:CARS

Stock Analysis Report

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Executive Summary

Cars.com, LLC, through its subsidiaries, operates as a digital marketplace, and provides solutions for the automotive industry. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Cars.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CARS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

CARS

6.1%

US Interactive Media and Services

-0.4%

US Market


1 Year Return

-19.2%

CARS

38.7%

US Interactive Media and Services

18.3%

US Market

Return vs Industry: CARS underperformed the US Interactive Media and Services industry which returned 38.7% over the past year.

Return vs Market: CARS underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

CARSIndustryMarket
7 Day-2.8%6.1%-0.4%
30 Day17.8%14.8%8.0%
90 Day44.1%15.6%9.4%
1 Year-19.2%-19.2%38.8%38.7%21.0%18.3%
3 Year-62.8%-62.8%50.9%50.8%42.1%32.7%
5 Yearn/a123.6%123.1%85.6%64.7%

Price Volatility Vs. Market

How volatile is Cars.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cars.com undervalued compared to its fair value and its price relative to the market?

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CARS ($8.95) is trading below our estimate of fair value ($15.44)

Significantly Below Fair Value: CARS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CARS is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: CARS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CARS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CARS is good value based on its PB Ratio (1.8x) compared to the US Interactive Media and Services industry average (2.9x).


Next Steps

Future Growth

How is Cars.com forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

117.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CARS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CARS's is expected to become profitable in the next 3 years.

Revenue vs Market: CARS's revenue (6.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CARS's revenue (6.9% 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 CARS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cars.com performed over the past 5 years?

-80.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARS is currently unprofitable.

Growing Profit Margin: CARS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CARS is unprofitable, and losses have increased over the past 5 years at a rate of 80.7% per year.

Accelerating Growth: Unable to compare CARS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CARS is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-12.6%).


Return on Equity

High ROE: CARS has a negative Return on Equity (-377.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cars.com's financial position?


Financial Position Analysis

Short Term Liabilities: CARS's short term assets ($141.5M) exceed its short term liabilities ($95.0M).

Long Term Liabilities: CARS's short term assets ($141.5M) do not cover its long term liabilities ($653.9M).


Debt to Equity History and Analysis

Debt Level: CARS's debt to equity ratio (188.6%) is considered high.

Reducing Debt: Insufficient data to determine if CARS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CARS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CARS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 10.4% per year.


Next Steps

Dividend

What is Cars.com current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CARS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CARS'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 CARS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CARS'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 CARS'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?

2.3yrs

Average management tenure


CEO

T. Vetter (49 yo)

5.92yrs

Tenure

US$4,562,630

Compensation

Mr. T. Alex Vetter co-founded Cars.com Inc. in 1997 and has been its Chief Executive Officer since November 2014. Mr. Vetter served as President of Cars.com Inc. since November 2014 until January 2020. He ...


CEO Compensation Analysis

Compensation vs Market: T.'s total compensation ($USD4.56M) is above average for companies of similar size in the US market ($USD2.94M).

Compensation vs Earnings: T.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
T. Vetter
Co-Founder5.92yrsUS$4.56m1.11%
$ 6.7m
James Rogers
Chief Legal Officer & Secretary4yrsUS$907.91k0.060%
$ 361.0k
Douglas Miller
Chief Revenue Officer2.25yrsUS$1.40m0.0050%
$ 30.2k
William Swislow
Co-Founder23.75yrsno datano data
Mitch Golub
Co-Founder23.75yrsno datano data
Sonia Jain
Chief Financial Officer0.25yrno datano data
Fred Lee
Chief Technology Officer2.42yrsno datano data
Jeanette Tomy
VP of Investor Relations & Treasury0.25yrno data0.12%
$ 692.9k
Kamal Hamid
Director of Investor Relationsno datano datano data
Marita Thomas
Chief Communications Officer0.33yrno datano data
D. Williams
Chief People Officer1.42yrsno datano data
Jennifer Newman
Editor-In-Chiefno datano datano data

2.3yrs

Average Tenure

49yo

Average Age

Experienced Management: CARS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
T. Vetter
Co-Founder5.92yrsUS$4.56m1.11%
$ 6.7m
Scott Forbes
Independent Chairman of the Board3.42yrsUS$320.01k0.032%
$ 194.0k
Jill Greenthal
Independent Director3.42yrsUS$245.02k0.087%
$ 520.8k
Michael Kelly
Independent Director2.42yrsUS$225.02k0.0044%
$ 26.3k
Bryan Wiener
Independent Director2.42yrsUS$225.02k0.011%
$ 67.4k
Jerri DeVard
Independent Director3.42yrsUS$225.02kno data
Thomas Hale
Independent Director3.33yrsUS$225.02k0.0073%
$ 44.0k
Donald McGovern
Independent Director3.33yrsUS$245.02k0.019%
$ 116.4k
Greg Revelle
Independent Director3.33yrsUS$225.02k0.0074%
$ 44.7k
Bala Subramanian
Independent Director2.75yrsUS$225.02kno data

3.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: CARS's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CARS 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

Cars.com, LLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cars.com, LLC
  • Ticker: CARS
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$601.440m
  • Shares outstanding: 67.20m
  • Website: https://www.cars.com

Number of Employees


Location

  • Cars.com, LLC
  • 300 S. Riverside Plaza
  • Suite 1000
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CARSNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2017
CK3DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2017
0HTZLSE (London Stock Exchange)YesCommon StockGBUSDMay 2017

Biography

Cars.com, LLC, through its subsidiaries, operates as a digital marketplace, and provides solutions for the automotive industry. Its platform connects car shoppers with sellers and original equipment manufa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:56
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.