(CARG) CarGurus - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NASDAQ (USA) | Market Cap: 2.547m USD | Total Return: -5.1% in 12m
Avg Turnover: 49.6M
EPS Trend: 99.4%
Qual. Beats: 0
Rev. Trend: -37.8%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Confidence
CarGurus, Inc. (CARG) operates a multinational online automotive marketplace connecting car shoppers with a global network of dealers. The company generates revenue through dealer subscription fees, digital advertising for manufacturers, and integrated financing partnerships. Its technology suite includes machine-learning pricing tools, digital transaction capabilities, and enthusiast platforms such as PistonHeads and Autolist.
The business model relies on a two-sided network effect where high consumer traffic attracts dealer inventory, which in turn draws more users. In the Interactive Media & Services sector, platform scalability is often driven by proprietary data sets, such as CarGurus’ Instant Market Value (IMV) data, which informs real-time vehicle pricing and consumer demand analysis. This shift toward digital-first automotive retail reduces traditional friction in the trade-in and financing processes.
Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics.
- Dealer subscription growth strengthens recurring revenue and platform scale efficiency
- Digital Deal adoption rates determine long-term transaction fee revenue potential
- Wholesale segment performance influences overall margin stability and profitability
- Used vehicle inventory levels and pricing impact dealer advertising budget allocations
- Expansion of financing partnerships drives high-margin services revenue growth opportunities
| Net Income: 149.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.54 > 0.02 and ΔFCF/TA 22.19 > 1.0 |
| NWC/Revenue: 6.68% < 20% (prev 17.42%; Δ -10.75% < -1%) |
| CFO/TA 0.57 > 3% & CFO 297.2m > Net Income 149.1m |
| Net Debt (115.9m) to EBITDA (278.3m): 0.42 < 3 |
| Current Ratio: 1.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.1m) vs 12m ago -9.49% < -2% |
| Gross Margin: 89.88% > 18% (prev 0.85%; Δ 8.90k% > 0.5%) |
| Asset Turnover: 158.4% > 50% (prev 131.1%; Δ 27.26% > 0%) |
| Interest Coverage Ratio: 5.32 > 6 (EBITDA TTM 278.3m / Interest Expense TTM 45.2m) |
| A: 0.12 (Total Current Assets 161.9m - Total Current Liabilities 98.0m) / Total Assets 519.6m |
| B: 0.44 (Retained Earnings 229.8m / Total Assets 519.6m) |
| C: 0.40 (EBIT TTM 240.6m / Avg Total Assets 604.4m) |
| D: 0.82 (Book Value of Equity 230.4m / Total Liabilities 282.5m) |
| Altman-Z'' = 5.78 = AAA |
| DSRI: 1.03 (Receivables 44.6m/40.7m, Revenue 957.4m/903.7m) |
| GMI: 0.94 (GM 89.88% / 84.50%) |
| AQI: 0.92 (AQ_t 0.25 / AQ_t-1 0.27) |
| SGI: 1.06 (Revenue 957.4m / 903.7m) |
| TATA: -0.29 (NI 149.1m - CFO 297.2m) / TA 519.6m) |
| Beneish M = -3.35 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 29.86 with a total of 2,171,102 shares traded.
Over the past week, the price has changed by +8.19%,
over one month by -18.57%,
over three months by -2.74% and
over the past year by -5.09%.
CarGurus has received a consensus analysts rating of 4.15. Therefore, it is recommended to buy CARG.
- StrongBuy: 6
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 37.4 | 25.1% |
P/E Trailing = 14.8632
P/E Forward = 11.1607
P/S = 2.7144
P/B = 10.7405
P/EG = 0.8586
Revenue TTM = 957.4m USD
EBIT TTM = 240.6m USD
EBITDA TTM = 278.3m USD
Long Term Debt = 178.4m USD (estimated: total debt 188.0m - short term 9.62m)
Short Term Debt = 9.62m USD (from shortTermDebt, last quarter)
Debt = 188.0m USD (from shortLongTermDebtTotal, last quarter) (leases 188.0m already included)
Net Debt = 115.9m USD (calculated: Debt 188.0m - CCE 72.0m)
Enterprise Value = 2.66b USD (2.55b + Debt 188.0m - CCE 72.0m)
Interest Coverage Ratio = 5.32 (Ebit TTM 240.6m / Interest Expense TTM 45.2m)
EV/FCF = 9.49x (Enterprise Value 2.66b / FCF TTM 280.7m)
FCF Yield = 10.54% (FCF TTM 280.7m / Enterprise Value 2.66b)
FCF Margin = 29.32% (FCF TTM 280.7m / Revenue TTM 957.4m)
Net Margin = 15.57% (Net Income TTM 149.1m / Revenue TTM 957.4m)
Gross Margin = 89.88% ((Revenue TTM 957.4m - Cost of Revenue TTM 96.9m) / Revenue TTM)
Gross Margin QoQ = 92.23% (prev 90.39%)
Tobins Q-Ratio = 5.12 (Enterprise Value 2.66b / Total Assets 519.6m)
Interest Expense / Debt = 24.05% (Interest Expense 45.2m / Debt 188.0m)
Taxrate = 21.67% (8.92m / 41.1m)
NOPAT = 188.5m (EBIT 240.6m * (1 - 21.67%))
Current Ratio = 1.65 (Total Current Assets 161.9m / Total Current Liabilities 98.0m)
Debt / Equity = 0.79 (Debt 188.0m / totalStockholderEquity, last quarter 237.1m)
Debt / EBITDA = 0.42 (Net Debt 115.9m / EBITDA 278.3m)
Debt / FCF = 0.41 (Net Debt 115.9m / FCF TTM 280.7m)
Total Stockholder Equity = 355.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 24.67% (Net Income 149.1m / Total Assets 519.6m)
RoE = 41.93% (Net Income TTM 149.1m / Total Stockholder Equity 355.6m)
RoCE = 45.06% (EBIT 240.6m / Capital Employed (Equity 355.6m + L.T.Debt 178.4m))
RoIC = 45.38% (NOPAT 188.5m / Invested Capital 415.3m)
WACC = 11.87% (E(2.55b)/V(2.73b) * Re(11.36%) + D(188.0m)/V(2.73b) * Rd(24.05%) * (1-Tc(0.22)))
Discount Rate = 11.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -77.78 | Cagr: -6.64%
[DCF] Terminal Value 67.45% ; FCFF base≈256.1m ; Y1≈293.6m ; Y5≈432.1m
[DCF] Fair Price = 51.09 (EV 4.00b - Net Debt 115.9m = Equity 3.88b / Shares 76.0m; r=11.87% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.38 | EPS CAGR: 37.81% | SUE: 0.68 | # QB: 0
Revenue Correlation: -37.78 | Revenue CAGR: -3.31% | SUE: 0.13 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.61 | Chg30d=+2.27% | Revisions=+38% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.63 | Chg30d=-0.09% | Revisions=+8% | Analysts=12
EPS current Year (2026-12-31): EPS=2.51 | Chg30d=-0.22% | Revisions=+7% | GrowthEPS=+13.3% | GrowthRev=+8.0%
EPS next Year (2027-12-31): EPS=2.92 | Chg30d=+0.30% | Revisions=+29% | GrowthEPS=+16.3% | GrowthRev=+9.2%
[Analyst] Revisions Ratio: +38%