CARG Stock Analysis: CarGurus | NASDAQ
Auto & Truck Dealerships | NASDAQ, USA | Market Cap: 3.188m USD | 12M Return: 5.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 45.2M
EPS Trend: 99.0%
Qual. Beats: 0
Rev. Trend: -37.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 8.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
CarGurus, Inc. (NASDAQ: CARG) operates an online automotive marketplace that connects car shoppers with a network of dealers, primarily through a subscription-based model in which dealers pay recurring fees for access to the platforms audience and lead-generation tools. The company generates additional revenue from automotive manufacturers and brand advertisers, as well as from partnerships with third-party financing providers, layering digital advertising on top of its core marketplace offering.
In addition to its flagship U.S. marketplace, CarGurus has expanded its product suite to include online transaction tools (Digital Deal), in-lot consumer support (Dealership Mode), trade-in offer functionality (Sell My Car), and pricing software powered by machine learning (PriceVantage). The company also owns and operates international automotive marketplaces such as Autolist and PistonHeads. Founded in 2005 and headquartered in Boston, Massachusetts, CarGurus is classified within the Communication Services sector under the Interactive Media & Services sub-industry, a grouping that includes other digital advertising- and marketplace-driven platforms. The company held its IPO in October 2017 and currently sits in the mid-cap range by market capitalization.
- US dealer subscription revenue grows with net adds and pricing
- Used car market weakness pressures dealer marketing budgets
- International UK expansion and OEM advertising diversify revenue mix
| 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 (260.1m): 0.45 < 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 84.50%; Δ 5.37% > 0.5%) |
| Asset Turnover: 158.4% > 50% (prev 131.1%; Δ 27.26% > 0%) |
| Interest Coverage Ratio: 8.22 > 6 (EBIT TTM 222.5m / Interest Expense TTM 27.1m) |
| 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: 0.37 (EBIT TTM 222.5m / Avg Total Assets 604.4m) |
| D: 0.84 (Book Value of Equity 237.1m / Total Liabilities 282.5m) |
| Altman-Z'' = 5.60 = AAA |
| DSRI: 1.03 (Receivables 44.6m/40.7m, Revenue 957.4m/903.7m) |
| GMI: 0.94 (GM 84.50% / 89.88%) |
| 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 = -3.09 (Cap -4..+1) = AA |
As of July 21, 2026, the stock is trading at USD 35.16 with a total of 1,104,905 shares traded. Over the past week, the price has changed by +4.18%, over one month by +16.89%, over three months by -5.31% and over the past year by +5.84%.
Current recommended Stop Loss: 31.80 (which is 9.6% or 2.5 ATR below the current price).
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 | 6.3% |
P/E Trailing = 18.6053
P/E Forward = 13.459
P/S = 3.3978
P/B = 12.9427
P/EG = 1.0347
Revenue TTM = 957.4m USD
EBIT TTM = 222.5m USD
EBITDA TTM = 260.1m 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 = 3.30b USD (3.19b + Debt 188.0m - CCE 72.0m)
Interest Coverage Ratio = 8.22 (Ebit TTM 222.5m / Interest Expense TTM 27.1m)
EV/FCF = 11.77x (Enterprise Value 3.30b / FCF TTM 280.7m)
FCF Yield = 8.49% (FCF TTM 280.7m / Enterprise Value 3.30b)
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 = 6.36 (Enterprise Value 3.30b / Total Assets 519.6m)
Interest Expense / Debt = 14.40% (Interest Expense 27.1m / Debt 188.0m)
Taxrate = 21.68% (42.4m / 195.4m)
NOPAT = 174.2m (EBIT 222.5m * (1 - 21.68%))
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 = 0.45 (Net Debt 115.9m / EBITDA 260.1m)
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 = 41.66% (EBIT 222.5m / Capital Employed (Equity 355.6m + L.T.Debt 178.4m))
RoIC = 45.44% (NOPAT 174.2m / Invested Capital 383.4m)
WACC = 11.21% (E(3.19b)/V(3.38b) * Re(11.21%) + D(188.0m)/V(3.38b) * Rd(14.40%) * (1-Tc(0.22)))
Discount Rate = 11.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.34 | Cagr: -6.64%
[DCF] Terminal Value 69.29% ; FCFF base≈256.1m ; Y1≈293.6m ; Y5≈432.1m
[DCF] Fair Price = 55.23 (EV 4.31b - Net Debt 115.9m = Equity 4.20b / Shares 76.0m; r=11.21% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.02 | EPS CAGR: 34.99% | SUE: 0.49 | # 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=+0.38% | Revisions=+25% | Analysts=13
EPS next Quarter (2026-09-30): EPS=0.63 | Chg30d=+0.48% | Revisions=+25% | Analysts=13
EPS current Year (2026-12-31): EPS=2.51 | Chg30d=+0.31% | Revisions=+25% | GrowthEPS=+13.2% | GrowthRev=+8.1%
EPS next Year (2027-12-31): EPS=2.92 | Chg30d=+0.32% | Revisions=+25% | GrowthEPS=+16.0% | GrowthRev=+9.2%
[Analyst] Revisions Ratio: +57% (up=4, down=0)