CARG Stock Analysis: CarGurus | NASDAQ
Internet Content & Information | NASDAQ, USA | Market Cap: 3.005m USD | 12M Return: -5.1% | US1417881091 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 27.2M
EPS Trend: 98.9%
Qual. Beats: 1
Rev. Trend: 37.6%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 8.8 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: 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 (277.6m): 0.23 < 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 September 15, 2026, the stock is trading at USD 34.43 with a total of 1,168,966 shares traded. Over the past week, the price has changed by +0.57%, over one month by -4.85%, over three months by +24.37% and over the past year by -5.14%.
Current recommended Stop Loss: 31.60 (which is 8.2% or 2.2 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 | 41.4 | 20.2% |
P/E Trailing = 17.3918
P/E Forward = 9.5602
P/S = 3.107
P/B = 11.5353
P/EG = 0.7356
Revenue TTM = 974.3m USD
EBIT TTM = 231.5m USD
EBITDA TTM = 277.6m 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 = 3.07b USD (3.01b + Debt 185.1m - CCE 122.1m)
Interest Coverage Ratio = unknown (Ebit TTM 231.5m / Interest Expense TTM 0.0)
EV/FCF = 9.92x (Enterprise Value 3.07b / FCF TTM 309.4m)
FCF Yield = 10.08% (FCF TTM 309.4m / Enterprise Value 3.07b)
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 = 5.53 (Enterprise Value 3.07b / 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 = 0.23 (Net Debt 63.0m / EBITDA 277.6m)
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 = 8.91% (E(3.01b)/V(3.19b) * Re(9.46%) + D(185.1m)/V(3.19b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 9.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.85 | Cagr: -7.54%
[DCF] Terminal Value 76.17% ; FCFF base≈283.3m ; Y1≈324.8m ; Y5≈478.0m
[DCF] Fair Price = 86.10 (EV 6.55b - Net Debt 63.0m = Equity 6.48b / Shares 75.3m; r=8.91% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.88 | EPS CAGR: 31.51% | SUE: 2.35 | # QB: 1
Revenue Correlation: 37.57 | Revenue CAGR: 1.51% | SUE: 0.33 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.66 | Chg30d=+5.17% | Revisions=+80% | Analysts=12
EPS current Year (2026-12-31): EPS=2.62 | Chg30d=+4.06% | Revisions=+80% | GrowthEPS=+18.2% | GrowthRev=+8.0%
EPS next Year (2027-12-31): EPS=3.01 | Chg30d=+2.94% | Revisions=+58% | GrowthEPS=+14.7% | GrowthRev=+9.0%
[Analyst] Revisions Ratio: +86% (up=32, down=1)