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Cars.com Inc.NYSE:CARS Stock Report

Market Cap US$513.2m
Share Price
US$9.34
US$13
28.2% undervalued intrinsic discount
1Y-8.3%
7D-8.3%
1D
Portfolio Value
View

Cars.com Inc.

NYSE:CARS Stock Report

Market Cap: US$513.2m

Cars.com (CARS) Stock Overview

An audience-driven technology company, provides solutions for the automotive industry in the United States. More details

CARS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

CARS Community Fair Values

Create Narrative

See what 7 others think this stock is worth. Follow their fair value or set your own to get alerts.

Cars.com Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Cars.com
Historical stock prices
Current Share PriceUS$9.34
52 Week HighUS$13.97
52 Week LowUS$7.40
Beta1.61
1 Month Change-16.31%
3 Month Change15.02%
1 Year Change-8.34%
3 Year Change-49.78%
5 Year Change-33.43%
Change since IPO-62.16%

Recent News & Updates

Narrative Update May 26

CARS: Cost Cuts And Buybacks Will Reshape Earnings Profile By 2027

Narrative Update on Cars.com The analyst price target for Cars.com is now aligned with a revised fair value estimate of $13.00, as analysts factor in updated expectations for slower revenue growth, lower profit margins, a higher discount rate, and a reduced future P/E multiple following recent guidance and sector commentary. Analyst Commentary Recent research on Cars.com offers a mixed picture, with some analysts still constructive on the long term setup while others are more cautious after the latest Q4 results and guidance.
Narrative Update May 11

CARS: 2026 Earnings Execution And Cost Cuts Will Drive Future Repricing

Analysts have trimmed the average Cars.com price target by about $1, reflecting lower revenue growth assumptions and reduced future P/E expectations. These factors are partly offset by slightly higher projected profit margins and a modestly lower discount rate.
Seeking Alpha May 11

Cars.com: Declining Traffic, Sinking Subscription Base

Summary Cars.com is a value trap despite a post-Q1 earnings rebound. The company faced flat revenue trends and weak dealer retention, which stands in stark contrast to larger rival CarGurus. Traffic is declining, while the company is facing flat dealer counts and flat average revenue (compared to mid-teens growth for CarGurus). Though cheap at a ~5x forward adjusted EBITDA multiple (vs. ~9x for CarGurus), the company has poor execution and few upside catalysts. Read the full article on Seeking Alpha
Narrative Update Apr 26

CARS: Future Dealer Tech Spending Will Face Longer Competitive And AI Pressures

Analysts have reduced their price targets on Cars.com into a lower $10 to $20 range, citing Q4 results with softer EBITDA, below-consensus 2026 guidance and limited visibility on growth and margins as competitive and AI related pressures build. Analyst Commentary Recent research notes highlight that bearish analysts are resetting expectations for Cars.com, centering their views on softer profitability, cautious multi year guidance and rising competitive and AI related pressures.

Recent updates

Narrative Update May 26

CARS: Cost Cuts And Buybacks Will Reshape Earnings Profile By 2027

Narrative Update on Cars.com The analyst price target for Cars.com is now aligned with a revised fair value estimate of $13.00, as analysts factor in updated expectations for slower revenue growth, lower profit margins, a higher discount rate, and a reduced future P/E multiple following recent guidance and sector commentary. Analyst Commentary Recent research on Cars.com offers a mixed picture, with some analysts still constructive on the long term setup while others are more cautious after the latest Q4 results and guidance.
Narrative Update May 11

CARS: 2026 Earnings Execution And Cost Cuts Will Drive Future Repricing

Analysts have trimmed the average Cars.com price target by about $1, reflecting lower revenue growth assumptions and reduced future P/E expectations. These factors are partly offset by slightly higher projected profit margins and a modestly lower discount rate.
Seeking Alpha May 11

Cars.com: Declining Traffic, Sinking Subscription Base

Summary Cars.com is a value trap despite a post-Q1 earnings rebound. The company faced flat revenue trends and weak dealer retention, which stands in stark contrast to larger rival CarGurus. Traffic is declining, while the company is facing flat dealer counts and flat average revenue (compared to mid-teens growth for CarGurus). Though cheap at a ~5x forward adjusted EBITDA multiple (vs. ~9x for CarGurus), the company has poor execution and few upside catalysts. Read the full article on Seeking Alpha
Narrative Update Apr 26

CARS: Future Dealer Tech Spending Will Face Longer Competitive And AI Pressures

Analysts have reduced their price targets on Cars.com into a lower $10 to $20 range, citing Q4 results with softer EBITDA, below-consensus 2026 guidance and limited visibility on growth and margins as competitive and AI related pressures build. Analyst Commentary Recent research notes highlight that bearish analysts are resetting expectations for Cars.com, centering their views on softer profitability, cautious multi year guidance and rising competitive and AI related pressures.
Narrative Update Apr 12

CARS: Future Dealer Tech Investments Will Face Slower Near Term Progress

Analysts have trimmed the blended price target range for Cars.com to around $10 to $20 as they react to Q4 results, lower 2026 EBITDA estimates, and comments pointing to limited visibility on a growth inflection and margins. Analyst Commentary Recent research shows a clear reset in expectations around Cars.com, with multiple bearish analysts cutting price targets and tempering growth assumptions after the Q4 print and 2026 guidance.
Narrative Update Mar 28

CARS: Softer Margins And 2026 Outlook Will Set Up Future Repricing

The analyst price target for Cars.com has been reduced by $7.50, to $17.50, as analysts factor in softer margin expectations, higher perceived risk, and lower 2026 adjusted EBITDA guidance, alongside weaker ad spending and increased competitive pressure. Analyst Commentary Street research has turned more cautious on Cars.com in the near term, with several firms trimming price targets and, in one case, reducing the rating to Neutral.
Narrative Update Mar 14

CARS: Future Dealer Tech Investments Will Support Long Term Margin Expansion

Analysts have trimmed their price expectations for Cars.com, with the consolidated target moving lower into a roughly $10 to $20 range. They cited softer EBITDA guidance, reduced 2026 estimates and limited visibility on a growth inflection.
Narrative Update Feb 28

CARS: Future Dealer Tech Investments Will Reshape Long Term Margin Potential

Narrative Update on Cars.com The updated analyst price target for Cars.com shifts to $10 from $11 as analysts factor in softer revenue growth assumptions, a higher discount rate, and recent Street research citing mixed Q4 results, lower EBITDA, and reduced visibility on future growth and margins. Analyst Commentary Recent Street research reflects a more cautious stance on Cars.com, with several bearish analysts trimming price targets and, in some cases, shifting to more neutral ratings as they reassess the risk and reward trade off.
Analysis Article Dec 15

Investors Appear Satisfied With Cars.com Inc.'s (NYSE:CARS) Prospects

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may...
Analysis Article Oct 12

Does Cars.com (NYSE:CARS) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Analysis Article Sep 24

Is It Time To Consider Buying Cars.com Inc. (NYSE:CARS)?

While Cars.com Inc. ( NYSE:CARS ) might not have the largest market cap around , it saw a significant share price rise...
Analysis Article Jun 21

Is Cars.com (NYSE:CARS) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article May 29

Cars.com Inc.'s (NYSE:CARS) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights Cars.com to hold its Annual General Meeting on 4th of June CEO T. Vetter's total compensation includes...
Analysis Article May 16

Earnings Troubles May Signal Larger Issues for Cars.com (NYSE:CARS) Shareholders

Last week's earnings announcement from Cars.com Inc. ( NYSE:CARS ) was disappointing to investors, with a sluggish...
Analysis Article Feb 28

Investors Give Cars.com Inc. (NYSE:CARS) Shares A 35% Hiding

The Cars.com Inc. ( NYSE:CARS ) share price has fared very poorly over the last month, falling by a substantial 35...
Analysis Article Dec 23

Does Cars.com (NYSE:CARS) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article Nov 23

Why Investors Shouldn't Be Surprised By Cars.com Inc.'s (NYSE:CARS) 26% Share Price Surge

Cars.com Inc. ( NYSE:CARS ) shareholders would be excited to see that the share price has had a great month, posting a...
Seeking Alpha Nov 19

Cars.com Contends With Uneven Dealer Demand (Downgrade)

Summary Cars.com recently reported Q3 2024 results, matching revenue estimates but missing earnings projections. Financial trends show slight revenue growth, improved operating income, and strong free cash flow, but gross margins have declined due to higher product and technology expenses. My near-term hold outlook hinges on dealer demand recovery, with potential upside if growth rates improve. But significant recovery may not occur until 2025. Read the full article on Seeking Alpha
Analysis Article Nov 14

Earnings Troubles May Signal Larger Issues for Cars.com (NYSE:CARS) Shareholders

Despite Cars.com Inc.'s ( NYSE:CARS ) most recent earnings report having soft headline numbers, its stock has had a...
Analysis Article Sep 18

Is Cars.com (NYSE:CARS) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
User avatar
New Narrative Sep 15

Accu-Trade And OEM Synergies Spark Revenue Surge And Margin Expansion

Expanded market presence and enhanced service offerings through dealer base growth and ARPD maintenance suggest potential for revenue increase.
Seeking Alpha Aug 28

Cars.com Is Not In The Growth Race

Summary Cars.com is a popular online platform for buying and selling vehicles. Although the company reported strong financial results for Q2 2024, there is no reason to assume CARS will see continuous long-term growth. Cars.com has a solid balance sheet and a good management, but it has had a rough time trying to find revenue growth. As a consequence of this lack of revenue and earnings growth, I believe the stock will also have a hard time providing shareholders with capital appreciation. Read the full article on Seeking Alpha
Analysis Article Jun 20

Improved Earnings Required Before Cars.com Inc. (NYSE:CARS) Shares Find Their Feet

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may...
Analysis Article May 10

Is Now The Time To Put Cars.com (NYSE:CARS) On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

CARSUS Interactive Media and ServicesUS Market
7D-8.3%-3.6%-0.1%
1Y-8.3%58.6%26.3%

Return vs Industry: CARS underperformed the US Interactive Media and Services industry which returned 56.1% over the past year.

Return vs Market: CARS underperformed the US Market which returned 26.2% over the past year.

Price Volatility

Is CARS's price volatile compared to industry and market?
CARS volatility
CARS Average Weekly Movement6.8%
Interactive Media and Services Industry Average Movement8.6%
Market Average Movement7.2%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: CARS has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: CARS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,700Tobi Hartmannwww.cars.com

Cars.com Inc., an audience-driven technology company, provides solutions for the automotive industry in the United States. The company offers marketplace through Cars.com that allows OEMs and dealers to merchandise their inventory, as well as provides reputation management technology and digital financing tools. It also operates dealer websites to transform automotive retail processes; and trade and appraisal product, including AccuTrade, which uses demand data and diagnostic scans to determine the right trade-in offer for every VIN in minutes.

Cars.com Inc. Fundamentals Summary

How do Cars.com's earnings and revenue compare to its market cap?
CARS fundamental statistics
Market capUS$513.19m
Earnings (TTM)US$27.04m
Revenue (TTM)US$724.44m
19.3x
P/E Ratio
0.7x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
CARS income statement (TTM)
RevenueUS$724.44m
Cost of RevenueUS$241.79m
Gross ProfitUS$482.64m
Other ExpensesUS$455.60m
EarningsUS$27.04m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)0.48
Gross Margin66.62%
Net Profit Margin3.73%
Debt/Equity Ratio98.1%

How did CARS perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/04 19:06
End of Day Share Price 2026/06/04 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cars.com Inc. is covered by 14 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary PrestopinoBarrington Research Associates, Inc.
Daniel KurnosBenchmark Company
Sameet SinhaB. Riley Securities, Inc.