CARG Stock Analysis: CarGurus | NASDAQ
Internet Content & Information | NASDAQ, USA | Market Cap: 3.220m USD | 12M Return: -2.5% | US1417881091 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 43.0M
EPS Trend: 98.2%
Qual. Beats: 2
Rev. Trend: 37.6%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 9 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 connecting car shoppers with a network of dealers across the United States and internationally. Founded in 2005 and headquartered in Boston, Massachusetts, the company generates revenue primarily through dealer subscription fees, advertising from automakers and brand advertisers, and partnerships with financing services. Its integrated platform includes tools such as Digital Deal (online purchase initiation), Dealership Mode (in-person dealer support), Sell My Car Top Dealer Offers (trade-in offers), IMV Scan (VIN-based valuation), and PriceVantage (machine learning-powered pricing software). The company also operates Autolist, a mobile and web-based automotive marketplace, and PistonHeads, an enthusiast-focused marketplace and auction platform. Originally founded as CarGurus LLC, the company adopted its current name in June 2015 and went public in October 2017.
CarGurus operates within the Interactive Media & Services sub-industry (GICS Communication Services), competing in the online automotive marketplace segment alongside peers such as AutoTrader and Cars.com. Its dealer subscription-based business model provides recurring, SaaS-like revenue, which is characteristic of successful digital marketplace platforms that monetize by aggregating consumer demand and selling access to that audience.
- Dealer subscription revenue growth drives marketplace segment performance
- International expansion in UK and Canada tests monetization beyond US market
- Auto manufacturer ad spend softness pressures total revenue and margins
- Competition from Carvana and AutoTrader pressures dealer pricing and retention
| Net Income: 175.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.56 > 0.02 and ΔFCF/TA 22.11 > 1.0 |
| NWC/Revenue: 9.55% < 20% (prev 23.04%; Δ -13.49% < -1%) |
| CFO/TA 0.57 > 3% & CFO 318.7m > Net Income 175.9m |
| Net Debt (63.0m) to EBITDA (261.7m): 0.24 < 3 |
| Current Ratio: 1.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (91.1m) vs 12m ago -9.09% < -2% |
| Gross Margin: 91.06% > 18% (prev 85.48%; Δ 5.58% > 0.5%) |
| Asset Turnover: 152.1% > 50% (prev 126.6%; Δ 25.51% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.17 (Total Current Assets 202.6m - Total Current Liabilities 109.5m) / Total Assets 555.1m |
| B: 0.46 (Retained Earnings 257.4m / Total Assets 555.1m) |
| C: 0.36 (EBIT TTM 231.5m / Avg Total Assets 640.6m) |
| D: 0.91 (Book Value of Equity 264.4m / Total Liabilities 290.8m) |
| Altman-Z'' = 5.99 = AAA |
| DSRI: 1.01 (Receivables 43.7m/41.0m, Revenue 974.3m/919.1m) |
| GMI: 0.94 (GM 85.48% / 91.06%) |
| AQI: 0.97 (AQ_t 0.23 / AQ_t-1 0.23) |
| SGI: 1.06 (Revenue 974.3m / 919.1m) |
| TATA: -0.26 (NI 175.9m - CFO 318.7m) / TA 555.1m) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of November 10, 2026, the stock is trading at USD 34.55 with a total of 1,662,159 shares traded. Over the past week, the price has changed by +2.25%, over one month by +19.76%, over three months by -8.09% and over the past year by -2.46%.
Current recommended Stop Loss: 31.00 (which is 10.3% or 2 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 | 41.3 | 19.5% |
P/E Trailing = 19.2287
P/E Forward = 10.1937
P/S = 3.2626
P/B = 12.3019
P/EG = 0.7845
Revenue TTM = 974.3m USD
EBIT TTM = 231.5m USD
EBITDA TTM = 261.7m USD
Long Term Debt = 175.3m USD (estimated: total debt 185.1m - short term 9.85m)
Short Term Debt = 9.85m USD (from shortTermDebt, last quarter)
Debt = 185.1m USD (from shortLongTermDebtTotal, last quarter) (leases 185.1m already included)
Net Debt = 63.0m USD (calculated: Debt 185.1m - CCE 122.1m)
Enterprise Value = 3.28b USD (3.22b + Debt 185.1m - CCE 122.1m)
Interest Coverage Ratio = unknown (Ebit TTM 231.5m / Interest Expense TTM 0.0)
EV/FCF = 10.61x (Enterprise Value 3.28b / FCF TTM 309.4m)
FCF Yield = 9.42% (FCF TTM 309.4m / Enterprise Value 3.28b)
FCF Margin = 31.76% (FCF TTM 309.4m / Revenue TTM 974.3m)
Net Margin = 18.06% (Net Income TTM 175.9m / Revenue TTM 974.3m)
Gross Margin = 91.06% ((Revenue TTM 974.3m - Cost of Revenue TTM 87.1m) / Revenue TTM)
Gross Margin QoQ = 92.08% (prev 92.23%)
Tobins Q-Ratio = 5.91 (Enterprise Value 3.28b / Total Assets 555.1m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 185.1m)
Taxrate = 22.29% (51.6m / 231.5m)
NOPAT = 179.9m (EBIT 231.5m * (1 - 22.29%))
Current Ratio = 1.85 (Total Current Assets 202.6m / Total Current Liabilities 109.5m)
Debt / Equity = 0.70 (Debt 185.1m / totalStockholderEquity, last quarter 264.4m)
Debt / EBITDA = 0.24 (Net Debt 63.0m / EBITDA 261.7m)
Debt / FCF = 0.20 (Net Debt 63.0m / FCF TTM 309.4m)
Total Stockholder Equity = 312.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 27.46% (Net Income 175.9m / Total Assets 555.1m)
RoE = 56.25% (Net Income TTM 175.9m / Total Stockholder Equity 312.8m)
RoCE = 47.43% (EBIT 231.5m / Capital Employed (Equity 312.8m + L.T.Debt 175.3m))
RoIC = 44.22% (NOPAT 179.9m / Invested Capital 406.7m)
WACC = 7.71% (E(3.22b)/V(3.41b) * Re(8.15%) + D(185.1m)/V(3.41b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 8.15% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.85 | Cagr: -7.54%
[DCF] Terminal Value 77.97% ; FCFF base≈283.3m ; Y1≈324.8m ; Y5≈478.0m
[DCF] Fair Price = 94.67 (EV 7.19b - Net Debt 63.0m = Equity 7.13b / Shares 75.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.20 | EPS CAGR: 28.09% | SUE: 2.48 | # QB: 2
Revenue Correlation: 37.57 | Revenue CAGR: 1.51% | SUE: 0.33 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.67 | Chg30d=-1.92% | Revisions=-25% | Analysts=4
EPS current Year (2026-12-31): EPS=2.62 | Chg30d=-0.07% | Revisions=+0% | GrowthEPS=+18.0% | GrowthRev=+8.1%
EPS next Year (2027-12-31): EPS=3.02 | Chg30d=-0.35% | Revisions=-40% | GrowthEPS=+15.4% | GrowthRev=+9.0%
[Analyst] Revisions Ratio: -38% (up=1, down=4)