Overview Dividends

(CARS) Cars.com - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US14575E1055

Marketplace,AccuTrade,Social,Vin,Display

CARS EPS (Earnings per Share)

EPS Growth (3Y CAGR): 234.51%
EPS Trend (3Y Correlation): 19.9%

CARS Revenue

Revenue Growth (3Y CAGR): 3.04%
Revenue Trend (3Y Correlation): 86.5%

Description: CARS Cars.com

Cars.com Inc. (NYSE:CARS) is an audience-driven technology platform that connects U.S. automotive OEMs, dealer groups, and consumers through a suite of digital services, including a vehicle marketplace, reputation-management tools, digital financing, and a suite of advertising products that deliver real-time inventory to in-market shoppers on social and search channels.

In its most recent fiscal year (2023), Cars.com reported revenue of roughly $1.3 billion, a 4 % YoY increase, with adjusted EBITDA margins hovering around 10 %. Daily active users on the Marketplace exceeded 5 million, and the AccuTrade trade-in tool now processes an estimated 1.2 million VIN scans per month, reflecting growing dealer reliance on real-time pricing data. The broader used-car market, which has been buoyed by tighter new-car supply and elevated interest rates, remains a key macro driver of traffic to the platform.

Key risks include the company’s dependence on dealer advertising spend, which can be sensitive to economic downturns and shifts in consumer confidence, as well as intensifying competition from peers such as CarGurus, Autotrader, and emerging OEM-direct digital retail solutions. A material change in dealer adoption of digital retailing tools or a slowdown in the used-car cycle could materially affect revenue growth.

For a deeper quantitative assessment of CARS’ valuation relative to peers, you may find the analyst tools on ValueRay useful.

CARS Stock Overview

Market Cap in USD	795m
Sub-Industry	Interactive Media & Services
IPO / Inception	2017-05-18

CARS Stock Ratings

Growth Rating	-11.5%
Fundamental	71.3%
Dividend Rating	-
Return 12m vs S&P 500	-36.1%
Analyst Rating	3.71 of 5

CARS Dividends

Currently no dividends paid

CARS Growth Ratios

Growth Correlation 3m	73.4%
Growth Correlation 12m	-62.9%
Growth Correlation 5y	37.4%
CAGR 5y	4.95%
CAGR/Max DD 3y	0.09
CAGR/Mean DD 3y	0.26
Sharpe Ratio 12m	-0.41
Alpha	0.08
Beta	0.635
Volatility	38.82%
Current Volume	868.7k
Average Volume 20d	632.3k
Stop Loss	12.9 (-4.1%)
Signal	0.09

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (41.0m TTM) > 0 and > 6% of Revenue (6% = 43.1m TTM)

FCFTA 0.13 (>2.0%) and ΔFCFTA 2.26pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 11.24% (prev 8.62%; Δ 2.62pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.13 (>3.0%) and CFO 139.5m > Net Income 41.0m (YES >=105%, WARN >=100%)

Net Debt (428.2m) to EBITDA (188.6m) ratio: 2.27 <= 3.0 (WARN <= 3.5)

Current Ratio 1.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (64.5m) change vs 12m ago -4.93% (target <= -2.0% for YES)

Gross Margin 82.61% (prev 82.75%; Δ -0.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 65.70% (prev 63.63%; Δ 2.07pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.72 (EBITDA TTM 188.6m / Interest Expense TTM 31.1m) >= 6 (WARN >= 3)

Altman Z'' -3.64

(A) 0.08 = (Total Current Assets 179.6m - Total Current Liabilities 98.9m) / Total Assets 1.06b

(B) -0.90 = Retained Earnings (Balance) -956.5m / Total Assets 1.06b

(D) -1.64 = Book Value of Equity -956.2m / Total Liabilities 581.4m

Total Rating: -3.64 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 71.25

1. Piotroski 6.0pt = 1.0

2. FCF Yield 10.79% = 5.0

3. FCF Margin 19.88% = 4.97

4. Debt/Equity 1.15 = 1.88

5. Debt/Ebitda 2.94 = -1.68

6. ROIC - WACC (= 1.53)% = 1.91

7. RoE 8.26% = 0.69

8. Rev. Trend 86.49% = 6.49

9. EPS Trend 19.91% = 1.00

What is the price of CARS shares?

As of September 17, 2025, the stock is trading at USD 13.45 with a total of 868,654 shares traded.
Over the past week, the price has changed by +0.45%, over one month by +4.02%, over three months by +28.46% and over the past year by -24.18%.

Is Cars.com a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Cars.com (NYSE:CARS) is currently (September 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 71.25 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CARS is around 12.22 USD . This means that CARS is currently overvalued and has a potential downside of -9.14%.

Is CARS a buy, sell or hold?

Cars.com has received a consensus analysts rating of 3.71. Therefor, it is recommend to hold CARS.

Strong Buy: 3
Buy: 1
Hold: 2
Sell: 0
Strong Sell: 1

What are the forecasts/targets for the CARS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	16.4	22.2%
Analysts Target Price	16.4	22.2%
ValueRay Target Price	13.2	-1.6%

Last update: 2025-09-05 04:36

CARS Fundamental Data Overview

Market Cap USD = 795.1m (795.1m USD * 1.0 USD.USD)
CCE Cash And Equivalents = 27.7m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 20.871
P/E Forward = 6.2539
P/S = 1.1076
P/B = 1.6454
P/EG = 1.22
Beta = 1.759
Revenue TTM = 717.8m USD
EBIT TTM = 84.5m USD
EBITDA TTM = 188.6m USD
Long Term Debt = 455.9m USD (from longTermDebt, last quarter)
Short Term Debt = 98.9m USD (from totalCurrentLiabilities, last quarter)
Debt = 554.8m USD (Calculated: Short Term 98.9m + Long Term 455.9m)
Net Debt = 428.2m USD (from netDebt column, last quarter)
Enterprise Value = 1.32b USD (795.1m + Debt 554.8m - CCE 27.7m)
Interest Coverage Ratio = 2.72 (Ebit TTM 84.5m / Interest Expense TTM 31.1m)
FCF Yield = 10.79% (FCF TTM 142.7m / Enterprise Value 1.32b)
FCF Margin = 19.88% (FCF TTM 142.7m / Revenue TTM 717.8m)
Net Margin = 5.71% (Net Income TTM 41.0m / Revenue TTM 717.8m)
Gross Margin = 82.61% ((Revenue TTM 717.8m - Cost of Revenue TTM 124.8m) / Revenue TTM)
Tobins Q-Ratio = -1.38 (set to none) (Enterprise Value 1.32b / Book Value Of Equity -956.2m)
Interest Expense / Debt = 1.38% (Interest Expense 7.64m / Debt 554.8m)
Taxrate = 22.11% (13.7m / 61.9m)
NOPAT = 65.8m (EBIT 84.5m * (1 - 22.11%))
Current Ratio = 1.82 (Total Current Assets 179.6m / Total Current Liabilities 98.9m)
Debt / Equity = 1.15 (Debt 554.8m / last Quarter total Stockholder Equity 483.2m)
Debt / EBITDA = 2.94 (Net Debt 428.2m / EBITDA 188.6m)
Debt / FCF = 3.89 (Debt 554.8m / FCF TTM 142.7m)
Total Stockholder Equity = 496.8m (last 4 quarters mean)
RoA = 3.85% (Net Income 41.0m, Total Assets 1.06b )
RoE = 8.26% (Net Income TTM 41.0m / Total Stockholder Equity 496.8m)
RoCE = 8.87% (Ebit 84.5m / (Equity 496.8m + L.T.Debt 455.9m))
RoIC = 6.89% (NOPAT 65.8m / Invested Capital 954.7m)
WACC = 5.36% (E(795.1m)/V(1.35b) * Re(8.35%)) + (D(554.8m)/V(1.35b) * Rd(1.38%) * (1-Tc(0.22)))
Shares Correlation 3-Years: -57.58 | Cagr: -0.44%
Discount Rate = 8.35% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 78.68% ; FCFE base≈135.5m ; Y1≈150.3m ; Y5≈196.2m
Fair Price DCF = 52.33 (DCF Value 3.22b / Shares Outstanding 61.4m; 5y FCF grow 12.58% → 3.0% )
EPS Correlation: 19.91 | EPS CAGR: 234.5% | SUE: -0.02 | # QB: 0
Revenue Correlation: 86.49 | Revenue CAGR: 3.04%

Additional Sources for CARS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle