CARS Stock Analysis: Cars.com | NYSE
Internet Content & Information | NYSE, USA | Market Cap: 637m USD | 12M Return: -12.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.60M
EPS Trend: 6.2%
Qual. Beats: 0
Rev. Trend: 88.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 9.1 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.
Cars.com Inc. (NYSE: CARS) is a U.S.-based, audience-driven technology company that provides digital solutions to the automotive retail industry. Its core offering is the Cars.com marketplace, where OEMs and dealers can merchandise inventory, supported by reputation management tools, digital financing applications, and dealer website services.
The company also operates trade-in and media products, including AccuTrade-a tool that uses diagnostic scans and demand data to generate trade-in valuations by VIN-as well as machine-learning-driven advertising solutions such as Cars Social, VIN Performance Media, and In-Market Video. Its business model is anchored in dealer subscriptions and digital advertising revenue, serving local dealers, dealer groups, OEMs, and auto-adjacent businesses.
Founded in 1998 and headquartered in Chicago, Illinois, Cars.com completed its IPO in May 2017. It is classified within the GICS Interactive Media & Services sub-industry and operates in a competitive online automotive marketplace sector alongside other digital listing and advertising platforms.
- US new and used vehicle sales drive dealer ad spend
- Subscription growth and AccuTrade expansion boost revenue per dealer
- Competition from CarGurus and AutoTrader pressures marketplace pricing
| Net Income: 27.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 3.55 > 1.0 |
| NWC/Revenue: 14.01% < 20% (prev 10.00%; Δ 4.01% < -1%) |
| CFO/TA 0.15 > 3% & CFO 162.0m > Net Income 27.0m |
| Net Debt (387.2m) to EBITDA (141.3m): 2.74 < 3 |
| Current Ratio: 1.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (59.6m) vs 12m ago -7.56% < -2% |
| Gross Margin: 82.95% > 18% (prev 90.27%; Δ -7.32% > 0.5%) |
| Asset Turnover: 67.80% > 50% (prev 66.26%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: 1.99 > 6 (EBIT TTM 59.7m / Interest Expense TTM 29.9m) |
| A: 0.10 (Total Current Assets 218.0m - Total Current Liabilities 116.5m) / Total Assets 1.05b |
| B: -0.89 (Retained Earnings -936.5m / Total Assets 1.05b) |
| C: 0.06 (EBIT TTM 59.7m / Avg Total Assets 1.07b) |
| D: 0.78 (Book Value of Equity 460.7m / Total Liabilities 592.7m) |
| Altman-Z'' = -1.07 = CCC |
| DSRI: 1.02 (Receivables 135.0m/131.0m, Revenue 724.4m/718.0m) |
| GMI: 1.09 (GM 90.27% / 82.95%) |
| AQI: 0.95 (AQ_t 0.76 / AQ_t-1 0.80) |
| SGI: 1.01 (Revenue 724.4m / 718.0m) |
| TATA: -0.13 (NI 27.0m - CFO 162.0m) / TA 1.05b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of July 15, 2026, the stock is trading at USD 11.10 with a total of 433,079 shares traded. Over the past week, the price has changed by -2.63%, over one month by +13.96%, over three months by +12.46% and over the past year by -12.18%.
Current recommended Stop Loss: 10.20 (which is 8.1% or 2.1 ATR below the current price).
Cars.com has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold CARS.
- StrongBuy: 3
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 13 | 17.1% |
P/E Trailing = 26.5116
P/E Forward = 5.9277
P/S = 0.8797
P/B = 1.3735
P/EG = 2.3503
Revenue TTM = 724.4m USD
EBIT TTM = 59.7m USD
EBITDA TTM = 141.3m USD
Long Term Debt = 451.8m USD (from longTermDebt, last quarter)
Short Term Debt = 2.97m USD (from shortTermDebt, last fiscal year)
Debt = 451.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 387.2m USD (calculated: Debt 451.8m - CCE 64.6m)
Enterprise Value = 1.02b USD (637.3m + Debt 451.8m - CCE 64.6m)
Interest Coverage Ratio = 1.99 (Ebit TTM 59.7m / Interest Expense TTM 29.9m)
EV/FCF = 6.47x (Enterprise Value 1.02b / FCF TTM 158.3m)
FCF Yield = 15.45% (FCF TTM 158.3m / Enterprise Value 1.02b)
FCF Margin = 21.85% (FCF TTM 158.3m / Revenue TTM 724.4m)
Net Margin = 3.73% (Net Income TTM 27.0m / Revenue TTM 724.4m)
Gross Margin = 82.95% ((Revenue TTM 724.4m - Cost of Revenue TTM 123.5m) / Revenue TTM)
Gross Margin QoQ = 82.39% (prev none%)
Tobins Q-Ratio = 0.97 (Enterprise Value 1.02b / Total Assets 1.05b)
Interest Expense / Debt = 6.63% (Interest Expense 29.9m / Debt 451.8m)
Taxrate = 38.89% (17.2m / 44.3m)
NOPAT = 36.5m (EBIT 59.7m * (1 - 38.89%))
Current Ratio = 1.87 (Total Current Assets 218.0m / Total Current Liabilities 116.5m)
Debt / Equity = 0.98 (Debt 451.8m / totalStockholderEquity, last quarter 460.7m)
Debt / EBITDA = 2.74 (Net Debt 387.2m / EBITDA 141.3m)
Debt / FCF = 2.45 (Net Debt 387.2m / FCF TTM 158.3m)
Total Stockholder Equity = 473.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.53% (Net Income 27.0m / Total Assets 1.05b)
RoE = 5.71% (Net Income TTM 27.0m / Total Stockholder Equity 473.5m)
RoCE = 6.46% (EBIT 59.7m / Capital Employed (Equity 473.5m + L.T.Debt 451.8m))
RoIC = 4.04% (NOPAT 36.5m / Invested Capital 903.6m)
WACC = 7.77% (E(637.3m)/V(1.09b) * Re(10.41%) + D(451.8m)/V(1.09b) * Rd(6.63%) * (1-Tc(0.39)))
Discount Rate = 10.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.07 | Cagr: -5.90%
[DCF] Terminal Value 77.97% ; FCFF base≈144.7m ; Y1≈165.9m ; Y5≈244.1m
[DCF] Fair Price = 58.78 (EV 3.67b - Net Debt 387.2m = Equity 3.29b / Shares 55.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 6.20 | EPS CAGR: 2.30% | SUE: -0.24 | # QB: 0
Revenue Correlation: 88.24 | Revenue CAGR: 2.71% | SUE: 0.00 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.51 | Chg30d=+1.69% | Revisions=+38% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.57 | Chg30d=+2.37% | Revisions=+12% | Analysts=5
EPS current Year (2026-12-31): EPS=2.11 | Chg30d=-0.30% | Revisions=+12% | GrowthEPS=+23.2% | GrowthRev=+0.8%
EPS next Year (2027-12-31): EPS=2.51 | Chg30d=+9.43% | Revisions=+38% | GrowthEPS=+19.4% | GrowthRev=+2.5%
[Analyst] Revisions Ratio: +35% (up=14, down=6)