NYSE:CARS

Stock Analysis Report

Executive Summary

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects car shoppers with sellers and original equipment manufacturers in the United States.

Snowflake

Fundamentals

Good value with moderate growth potential.

Risks

  • Cars.com has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

14.9%

NYSE:CARS

1.5%

US Interactive Media and Services

1.2%

US Market


1 Year Return

-57.9%

NYSE:CARS

4.5%

US Interactive Media and Services

1.7%

US Market

CARS underperformed the Interactive Media and Services industry which returned 4.6% over the past year.

CARS underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CARSIndustryMarket
7 Day14.9%1.5%1.2%
30 Day21.6%4.0%4.9%
90 Day-48.9%6.5%3.7%
1 Year-57.9%-57.9%4.6%4.5%3.9%1.7%
3 Yearn/a47.0%47.0%47.2%37.7%
5 Yearn/a84.0%83.9%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cars.com's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cars.com's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cars.com is overvalued based on earnings compared to the US Interactive Media and Services industry average.

Cars.com is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cars.com is good value based on expected growth next year.


Price Based on Value of Assets

Cars.com is good value based on assets compared to the US Interactive Media and Services industry average.


Next Steps

Future Growth

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

94.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cars.com's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Cars.com's earnings are expected to grow significantly at over 20% yearly.

Cars.com's revenue growth is positive but not above the United States of America market average.

Cars.com's earnings growth is expected to exceed the United States of America market average.

Cars.com's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cars.com will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

30.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cars.com has delivered over 20% year on year earnings growth in the past 5 years.

Cars.com's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Cars.com's 1-year earnings growth is negative, it can't be compared to the US Interactive Media and Services industry average.


Return on Equity

Cars.com has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cars.com used its assets less efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.


Return on Capital Employed

Cars.com's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cars.com's financial position?


Financial Position Analysis

Cars.com is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cars.com's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cars.com's level of debt (43.8%) compared to net worth is high (greater than 40%).

Unable to establish if Cars.com's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (20.9%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Cars.com's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cars.com's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cars.com has not reported any payouts.

Unable to verify if Cars.com's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cars.com has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Cars.com's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Cars.com's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

T. Vetter (48yo)

4.8yrs

Tenure

US$4,986,458

Compensation

Mr. T. Alex Vetter co-founded Cars.com Inc. in 1997 and has been its Chief Executive Officer and President since November 2014. Mr. Vetter served as the Chief Operating Officer and Executive Vice President ...


CEO Compensation Analysis

T.'s remuneration is higher than average for companies of similar size in United States of America.

T.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

The tenure for the Cars.com management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Cars.com board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Cars.com individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$105,38012 Sep 19
T. Vetter
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares11,000
Max PriceUS$9.58
BuyUS$95,70413 Aug 19
Donald McGovern
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,448
Max PriceUS$9.16
BuyUS$99,67813 Aug 19
Scott Forbes
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares11,100
Max PriceUS$8.98
BuyUS$95,90012 Aug 19
Jill Greenthal
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.59
BuyUS$46,15009 Aug 19
Becky Sheehan
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$9.23
BuyUS$28,68009 Aug 19
Bryan Wiener
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$9.56
BuyUS$49,67008 Aug 19
Thomas Hale
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,913
Max PriceUS$10.11
BuyUS$50,75008 Aug 19
Greg Revelle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$10.15
SellUS$50,530,42707 Aug 19
Starboard Value LP
EntityCompany
Shares4,474,858
Max PriceUS$11.71
BuyUS$24,85007 Aug 19
Michael Kelly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$9.94
BuyUS$99,90007 Aug 19
James Rogers
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares10,000
Max PriceUS$9.99
BuyUS$203,80007 Aug 19
T. Vetter
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares20,000
Max PriceUS$10.19

Ownership Breakdown


Management Team

  • Mitch Golub

    Co-Founder

    • Tenure: 22.7yrs
  • T. Vetter (48yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: US$4.99m
  • Bill Swislow

    Co-Founder

    • Tenure: 22.7yrs
  • Becky Sheehan (53yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$2.56m
  • Doug Miller (48yo)

    Chief Revenue Officer

    • Tenure: 1.2yrs
    • Compensation: US$803.16k
  • Fred Lee (45yo)

    Chief Technology Officer

    • Tenure: 1.3yrs
  • Jim Rogers (66yo)

    Chief Legal Officer

    • Tenure: 2.9yrs
    • Compensation: US$1.06m
  • Andy Jacobson

    Senior Vice President of National Sales

    • Tenure: 1.9yrs
  • Brooke Skinner Ricketts (38yo)

    Chief Marketing Officer

    • Tenure: 2.8yrs
  • Jandy Tomy

    VP of Investor Relations & Treasury

    • Tenure: 0yrs

Board Members

  • Scott Forbes (61yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$320.01k
  • Jill Greenthal (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$245.01k
  • Mike Kelly (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$196.89k
  • Bryan Wiener (49yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$196.89k
  • Jerri DeVard (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$225.01k
  • Tom Hale (50yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$225.01k
  • T. Vetter (48yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: US$4.99m
  • Don McGovern (68yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$245.01k
  • Greg Revelle (41yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$225.01k
  • Bala Subramanian (47yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$281.27k

Company Information

Cars.com Inc.'s company bio, 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
  • Market Cap: US$729.390m
  • Shares outstanding: 66.67m
  • Website: https://www.cars.com

Number of Employees


Location

  • Cars.com Inc.
  • 300 South 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 Inc., through its subsidiaries, operates as a digital automotive marketplace that connects car shoppers with sellers and original equipment manufacturers in the United States. Its Cars.com platfor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:35
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.