(CARS) Cars.com - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NYSE (USA) | Market Cap: 486m USD | Total Return: -17.9% in 12m
Industry Rotation: +6.7
Avg Turnover: 13.1M USD
Peers RS (IBD): 33.9
EPS Trend: 12.7%
Qual. Beats: 0
Rev. Trend: 91.9%
Qual. Beats: 0
Warnings
Altman Z'' -3.56 < 1.0 - financial distress zone
Choppy
Tailwinds
Squeeze
Cars.com Inc. operates as an automotive technology company in the U.S. It provides a cars commerce platform that connects car buyers with sellers, offering tools for inventory merchandising, consumer engagement, and vehicle valuation.
The companys offerings include a marketplace for new and used vehicles, digital financing solutions, and reputation management technology. It also provides website development and hosting for dealerships, along with digital retailing tools. A key feature is its trade and appraisal product, AccuTrade, which uses real-time market data for vehicle valuation. This directly addresses a critical need in the automotive retail sector: accurate and efficient trade-in assessments.
Cars.com Inc. further extends its services through the Cars Commerce Media Network, which includes advertising solutions like Cars Social for targeting car shoppers on social media, and VIN Performance Media for optimizing ad campaigns across various digital channels. These media services are vital for dealerships and OEMs seeking to reach in-market consumers. The company serves a diverse client base, including local dealers, original equipment manufacturers (OEMs), and dealer groups.
For more detailed analysis of CARSs financial performance and market position, consider exploring resources like ValueRay.
- Automotive advertising spend directly impacts Cars.com revenue
- Dealer inventory levels influence marketplace listing volume
- Interest rate changes affect car buyer demand and financing tools
- Regulatory scrutiny on data privacy could increase operational costs
- Economic downturns reduce consumer discretionary spending on vehicles
| Net Income: 20.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 2.34 > 1.0 |
| NWC/Revenue: 13.58% < 20% (prev 13.55%; Δ 0.03% < -1%) |
| CFO/TA 0.14 > 3% & CFO 151.6m > Net Income 20.1m |
| Net Debt (412.2m) to EBITDA (156.5m): 2.63 < 3 |
| Current Ratio: 1.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.7m) vs 12m ago -7.59% < -2% |
| Gross Margin: 83.03% > 18% (prev 0.90%; Δ 8.21k% > 0.5%) |
| Asset Turnover: 66.53% > 50% (prev 64.68%; Δ 1.85% > 0%) |
| Interest Coverage Ratio: 2.13 > 6 (EBITDA TTM 156.5m / Interest Expense TTM 30.4m) |
| A: 0.09 (Total Current Assets 211.6m - Total Current Liabilities 113.4m) / Total Assets 1.06b |
| B: -0.89 (Retained Earnings -941.5m / Total Assets 1.06b) |
| C: 0.06 (EBIT TTM 64.7m / Avg Total Assets 1.09b) |
| D: -1.60 (Book Value of Equity -941.5m / Total Liabilities 589.9m) |
| Altman-Z'' Score: -3.56 = D |
| DSRI: 0.98 (Receivables 131.9m/133.7m, Revenue 723.2m/719.2m) |
| GMI: 1.09 (GM 83.03% / 90.42%) |
| AQI: 1.00 (AQ_t 0.77 / AQ_t-1 0.77) |
| SGI: 1.01 (Revenue 723.2m / 719.2m) |
| TATA: -0.12 (NI 20.1m - CFO 151.6m) / TA 1.06b) |
| Beneish M-Score: -3.09 (Cap -4..+1) = AA |
Over the past week, the price has changed by +11.22%, over one month by +9.85%, over three months by -29.09% and over the past year by -17.86%.
- StrongBuy: 3
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 12.4 | 49.8% |
P/E Forward = 5.7837
P/S = 0.6715
P/B = 1.5475
P/EG = 1.22
Revenue TTM = 723.2m USD
EBIT TTM = 64.7m USD
EBITDA TTM = 156.5m USD
Long Term Debt = 451.5m USD (from longTermDebt, last quarter)
Short Term Debt = 2.97m USD (from shortTermDebt, last quarter)
Debt = 468.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 412.2m USD (from netDebt column, last quarter)
Enterprise Value = 897.9m USD (485.7m + Debt 468.5m - CCE 56.2m)
Interest Coverage Ratio = 2.13 (Ebit TTM 64.7m / Interest Expense TTM 30.4m)
EV/FCF = 6.09x (Enterprise Value 897.9m / FCF TTM 147.4m)
FCF Yield = 16.41% (FCF TTM 147.4m / Enterprise Value 897.9m)
FCF Margin = 20.37% (FCF TTM 147.4m / Revenue TTM 723.2m)
Net Margin = 2.77% (Net Income TTM 20.1m / Revenue TTM 723.2m)
Gross Margin = 83.03% ((Revenue TTM 723.2m - Cost of Revenue TTM 122.7m) / Revenue TTM)
Gross Margin QoQ = none% (prev 68.25%)
Tobins Q-Ratio = 0.85 (Enterprise Value 897.9m / Total Assets 1.06b)
Interest Expense / Debt = 1.59% (Interest Expense 7.44m / Debt 468.5m)
Taxrate = 41.55% (14.3m / 34.3m)
NOPAT = 37.8m (EBIT 64.7m * (1 - 41.55%))
Current Ratio = 1.87 (Total Current Assets 211.6m / Total Current Liabilities 113.4m)
Debt / Equity = 0.99 (Debt 468.5m / totalStockholderEquity, last quarter 472.5m)
Debt / EBITDA = 2.63 (Net Debt 412.2m / EBITDA 156.5m)
Debt / FCF = 2.80 (Net Debt 412.2m / FCF TTM 147.4m)
Total Stockholder Equity = 480.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.84% (Net Income 20.1m / Total Assets 1.06b)
RoE = 4.17% (Net Income TTM 20.1m / Total Stockholder Equity 480.8m)
RoCE = 6.94% (EBIT 64.7m / Capital Employed (Equity 480.8m + L.T.Debt 451.5m))
RoIC = 4.05% (NOPAT 37.8m / Invested Capital 934.4m)
WACC = 5.63% (E(485.7m)/V(954.2m) * Re(10.16%) + D(468.5m)/V(954.2m) * Rd(1.59%) * (1-Tc(0.42)))
Discount Rate = 10.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.95%
[DCF] Terminal Value 87.13% ; FCFF base≈139.7m ; Y1≈151.8m ; Y5≈190.3m
[DCF] Fair Price = 88.53 (EV 5.60b - Net Debt 412.2m = Equity 5.19b / Shares 58.6m; r=6.0% [WACC]; 5y FCF grow 9.87% → 3.0% )
EPS Correlation: 12.71 | EPS CAGR: -20.33% | SUE: -3.40 | # QB: 0
Revenue Correlation: 91.93 | Revenue CAGR: 4.10% | SUE: 0.29 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.47 | Chg7d=+0.024 | Chg30d=-0.047 | Revisions Net=-2 | Analysts=4
EPS current Year (2026-12-31): EPS=2.02 | Chg7d=+0.064 | Chg30d=-0.209 | Revisions Net=-3 | Growth EPS=+18.1% | Growth Revenue=+1.5%
EPS next Year (2027-12-31): EPS=2.19 | Chg7d=-0.035 | Chg30d=-0.289 | Revisions Net=-3 | Growth EPS=+8.7% | Growth Revenue=+2.6%
[Analyst] Revisions Ratio: -1.00 (0 Up / 2 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 6.2% (Discount Rate 10.2% - Earnings Yield 3.9%)
[Growth] Growth Spread = -5.0% (Analyst 1.2% - Implied 6.2%)