CARS Stock Analysis: Cars.com | NYSE
Internet Content & Information | NYSE, USA | Market Cap: 628m USD | 12M Return: -16.2% | US14575E1055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.90M
EPS Trend: 21.6%
Qual. Beats: 1
Rev. Trend: 85.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 9.2 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: 34.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 3.62 > 1.0 |
| NWC/Revenue: 13.41% < 20% (prev 11.24%; Δ 2.17% < -1%) |
| CFO/TA 0.15 > 3% & CFO 151.6m > Net Income 34.3m |
| Net Debt (413.8m) to EBITDA (167.9m): 2.46 < 3 |
| Current Ratio: 2.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (56.7m) vs 12m ago -12.13% < -2% |
| Gross Margin: 83.01% > 18% (prev 82.61%; Δ 0.40% > 0.5%) |
| Asset Turnover: 69.87% > 50% (prev 67.43%; Δ 2.44% > 0%) |
| Interest Coverage Ratio: 2.33 > 6 (EBIT TTM 69.0m / Interest Expense TTM 29.7m) |
| A: 0.10 (Total Current Assets 195.0m - Total Current Liabilities 97.6m) / Total Assets 1.01b |
| B: -0.91 (Retained Earnings -922.3m / Total Assets 1.01b) |
| C: 0.07 (EBIT TTM 69.0m / Avg Total Assets 1.04b) |
| D: 0.78 (Book Value of Equity 443.6m / Total Liabilities 568.8m) |
| Altman-Z'' = -1.07 = CCC |
| DSRI: 1.07 (Receivables 143.1m/132.9m, Revenue 725.6m/717.8m) |
| GMI: 1.00 (GM 82.61% / 83.01%) |
| AQI: 0.97 (AQ_t 0.77 / AQ_t-1 0.80) |
| SGI: 1.01 (Revenue 725.6m / 717.8m) |
| TATA: -0.12 (NI 34.3m - CFO 151.6m) / TA 1.01b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of September 10, 2026, the stock is trading at USD 11.22 with a total of 531,830 shares traded. Over the past week, the price has changed by -3.19%, over one month by -7.96%, over three months by +16.39% and over the past year by -16.21%.
Current recommended Stop Loss: 10.20 (which is 9.1% or 2 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 | 13.7 | 22.2% |
P/E Trailing = 20.5789
P/E Forward = 5.1046
P/S = 0.8654
P/B = 1.4228
P/EG = 2.3503
Revenue TTM = 725.6m USD
EBIT TTM = 69.0m USD
EBITDA TTM = 167.9m USD
Long Term Debt = 447.1m USD (from longTermDebt, last quarter)
Short Term Debt = 2.97m USD (from shortTermDebt, last fiscal year)
Debt = 447.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 413.8m USD (calculated: Debt 447.1m - CCE 33.3m)
Enterprise Value = 1.04b USD (627.9m + Debt 447.1m - CCE 33.3m)
Interest Coverage Ratio = 2.33 (Ebit TTM 69.0m / Interest Expense TTM 29.7m)
EV/FCF = 6.95x (Enterprise Value 1.04b / FCF TTM 149.8m)
FCF Yield = 14.38% (FCF TTM 149.8m / Enterprise Value 1.04b)
FCF Margin = 20.65% (FCF TTM 149.8m / Revenue TTM 725.6m)
Net Margin = 4.73% (Net Income TTM 34.3m / Revenue TTM 725.6m)
Gross Margin = 83.01% ((Revenue TTM 725.6m - Cost of Revenue TTM 123.3m) / Revenue TTM)
Gross Margin QoQ = 83.17% (prev 82.39%)
Tobins Q-Ratio = 1.03 (Enterprise Value 1.04b / Total Assets 1.01b)
Interest Expense / Debt = 6.64% (Interest Expense 29.7m / Debt 447.1m)
Taxrate = 36.27% (19.5m / 53.8m)
NOPAT = 44.0m (EBIT 69.0m * (1 - 36.27%))
Current Ratio = 2.00 (Total Current Assets 195.0m / Total Current Liabilities 97.6m)
Debt / Equity = 1.01 (Debt 447.1m / totalStockholderEquity, last quarter 443.6m)
Debt / EBITDA = 2.46 (Net Debt 413.8m / EBITDA 167.9m)
Debt / FCF = 2.76 (Net Debt 413.8m / FCF TTM 149.8m)
Total Stockholder Equity = 463.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.30% (Net Income 34.3m / Total Assets 1.01b)
RoE = 7.40% (Net Income TTM 34.3m / Total Stockholder Equity 463.6m)
RoCE = 7.58% (EBIT 69.0m / Capital Employed (Equity 463.6m + L.T.Debt 447.1m))
RoIC = 4.98% (NOPAT 44.0m / Invested Capital 884.5m)
WACC = 7.18% (E(627.9m)/V(1.08b) * Re(9.27%) + D(447.1m)/V(1.08b) * Rd(6.64%) * (1-Tc(0.36)))
Discount Rate = 9.27% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.03 | Cagr: -7.36%
[DCF] Terminal Value 77.97% ; FCFF base≈137.5m ; Y1≈157.6m ; Y5≈232.0m
[DCF] Fair Price = 57.49 (EV 3.49b - Net Debt 413.8m = Equity 3.08b / Shares 53.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 21.60 | EPS CAGR: 8.25% | SUE: 1.10 | # QB: 1
Revenue Correlation: 85.54 | Revenue CAGR: 2.05% | SUE: -0.38 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.57 | Chg30d=-1.39% | Revisions=-29% | Analysts=5
EPS current Year (2026-12-31): EPS=2.10 | Chg30d=-1.10% | Revisions=+12% | GrowthEPS=+22.8% | GrowthRev=+0.8%
EPS next Year (2027-12-31): EPS=2.59 | Chg30d=+2.89% | Revisions=+0% | GrowthEPS=+23.3% | GrowthRev=+2.4%
[Analyst] Revisions Ratio: -6% (up=6, down=7)