Cars.com
Market Cap
US$601.4m
Last Updated
2020/10/24 00:56 UTC
Data Sources
Company Financials +
Executive Summary
Cars.com, LLC, through its subsidiaries, operates as a digital marketplace, and provides solutions for the automotive industry. More Details
Rewards
Risk Analysis
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
| CARS | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.8% | 6.1% | -0.4% |
| 30 Day | 17.8% | 14.8% | 8.0% |
| 90 Day | 44.1% | 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 Year | n/a | 123.6%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
2 weeks ago | Simply Wall St
Cars.com Inc.'s (NYSE:CARS) Intrinsic Value Is Potentially 71% Above Its Share Price1 month ago | Simply Wall St
How Should Investors React To Cars.com's (NYSE:CARS) CEO Pay?1 month ago | Simply Wall St
Are Insiders Buying Cars.com Inc. (NYSE:CARS) Stock?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 5.92yrs | US$4.56m | 1.11% $ 6.7m | |
| Chief Legal Officer & Secretary | 4yrs | US$907.91k | 0.060% $ 361.0k | |
| Chief Revenue Officer | 2.25yrs | US$1.40m | 0.0050% $ 30.2k | |
| Co-Founder | 23.75yrs | no data | no data | |
| Co-Founder | 23.75yrs | no data | no data | |
| Chief Financial Officer | 0.25yr | no data | no data | |
| Chief Technology Officer | 2.42yrs | no data | no data | |
| VP of Investor Relations & Treasury | 0.25yr | no data | 0.12% $ 692.9k | |
| Director of Investor Relations | no data | no data | no data | |
| Chief Communications Officer | 0.33yr | no data | no data | |
| Chief People Officer | 1.42yrs | no data | no data | |
| Editor-In-Chief | no data | no data | no data |
2.3yrs
Average Tenure
49yo
Average Age
Experienced Management: CARS's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 5.92yrs | US$4.56m | 1.11% $ 6.7m | |
| Independent Chairman of the Board | 3.42yrs | US$320.01k | 0.032% $ 194.0k | |
| Independent Director | 3.42yrs | US$245.02k | 0.087% $ 520.8k | |
| Independent Director | 2.42yrs | US$225.02k | 0.0044% $ 26.3k | |
| Independent Director | 2.42yrs | US$225.02k | 0.011% $ 67.4k | |
| Independent Director | 3.42yrs | US$225.02k | no data | |
| Independent Director | 3.33yrs | US$225.02k | 0.0073% $ 44.0k | |
| Independent Director | 3.33yrs | US$245.02k | 0.019% $ 116.4k | |
| Independent Director | 3.33yrs | US$225.02k | 0.0074% $ 44.7k | |
| Independent Director | 2.75yrs | US$225.02k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CARS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 2017 |
| CK3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2017 |
| 0HTZ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/24 00:56 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.