company background image
CARS

Cars.com NYSE:CARS Stock Report

Last Price

US$10.15

Market Cap

US$705.3m

7D

7.9%

1Y

-24.4%

Updated

16 May, 2022

Data

Company Financials +
CARS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends0/6

CARS Stock Overview

Cars.com Inc. operates as a digital marketplace and provides solutions for the automotive industry.

Cars.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cars.com
Historical stock prices
Current Share PriceUS$10.15
52 Week HighUS$19.09
52 Week LowUS$8.75
Beta2.03
1 Month Change-20.83%
3 Month Change-37.31%
1 Year Change-24.42%
3 Year Change-53.86%
5 Year Change-59.40%
Change since IPO-58.87%

Recent News & Updates

Apr 22
Here's Why Cars.com (NYSE:CARS) Can Manage Its Debt Responsibly

Here's Why Cars.com (NYSE:CARS) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

CARSUS Interactive Media and ServicesUS Market
7D7.9%1.6%0.7%
1Y-24.4%-18.3%-10.8%

Return vs Industry: CARS underperformed the US Interactive Media and Services industry which returned -17.4% over the past year.

Return vs Market: CARS underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is CARS's price volatile compared to industry and market?
CARS volatility
CARS Average Weekly Movement7.6%
Interactive Media and Services Industry Average Movement12.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: CARS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CARS's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,600Alex Vetterhttps://www.cars.com

Cars.com Inc. operates as a digital marketplace and provides solutions for the automotive industry. Its platform connects car shoppers with sellers. The company, through its marketplace, dealer websites, and other digital products, showcases dealer inventory, elevate and amplify dealers’ and automotive manufacturers’ (OEMs) brands, connect sellers with ready-to-buy audience, and empower shoppers with the resources and information needed to make car buying decisions.

Cars.com Fundamentals Summary

How do Cars.com's earnings and revenue compare to its market cap?
CARS fundamental statistics
Market CapUS$705.34m
Earnings (TTM)US$6.78m
Revenue (TTM)US$628.60m

104.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CARS income statement (TTM)
RevenueUS$628.60m
Cost of RevenueUS$195.98m
Gross ProfitUS$432.61m
Other ExpensesUS$425.83m
EarningsUS$6.78m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.098
Gross Margin68.82%
Net Profit Margin1.08%
Debt/Equity Ratio128.9%

How did CARS perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CARS ($10.15) is trading below our estimate of fair value ($33.68)

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


Price To Earnings Ratio

PE vs Industry: CARS is poor value based on its PE Ratio (104x) compared to the US Interactive Media and Services industry average (24.1x).

PE vs Market: CARS is poor value based on its PE Ratio (104x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CARS's PB Ratio (1.8x) is in line with the US Interactive Media and Services industry average.


Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARS's forecast earnings growth (30.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CARS's earnings (30.5% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CARS's revenue (4.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: CARS's revenue (4.2% 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


Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-38.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CARS has a large one-off loss of $2.2M impacting its March 31 2022 financial results.

Growing Profit Margin: CARS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CARS has become profitable over the past 5 years, growing earnings by -38.5% per year.

Accelerating Growth: CARS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CARS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-32.4%).


Return on Equity

High ROE: CARS's Return on Equity (1.7%) is considered low.


Financial Health

How is Cars.com's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CARS's short term assets ($138.4M) exceed its short term liabilities ($95.8M).

Long Term Liabilities: CARS's short term assets ($138.4M) do not cover its long term liabilities ($577.3M).


Debt to Equity History and Analysis

Debt Level: CARS's net debt to equity ratio (121.2%) is considered high.

Reducing Debt: CARS's debt to equity ratio has increased from 0.3% to 128.9% over the past 5 years.

Debt Coverage: CARS's debt is well covered by operating cash flow (23.1%).

Interest Coverage: CARS's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CARS has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Alex Vetter (50 yo)

25.33yrs

Tenure

US$6,985,255

Compensation

Mr. Alex Vetter co-founded Cars.com Inc. in 1997 and has been its Chief Executive Officer since November 2014. Mr. Vetter served as President at Cars.com Inc. until January 01, 2022. Mr. Vetter served as P...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD6.99M) is above average for companies of similar size in the US market ($USD3.88M).

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


Leadership Team

Experienced Management: CARS's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: CARS's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CARS insiders have sold more shares than they have bought 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 Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cars.com Inc.
  • Ticker: CARS
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$705.344m
  • Shares outstanding: 69.49m
  • Website: https://www.cars.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.