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): -56.43%
EPS Trend (3Y Correlation): -9.2%

CARS Revenue

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

Description: CARS Cars.com September 11, 2025

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	660m
Sub-Industry	Interactive Media & Services
IPO / Inception	2017-05-18

CARS Stock Ratings

Growth Rating	-38.8%
Fundamental	67.2%
Dividend Rating	-
Return 12m vs S&P 500	-45.3%
Analyst Rating	3.71 of 5

CARS Dividends

Currently no dividends paid

CARS Growth Ratios

Growth Correlation 3m	-74.5%
Growth Correlation 12m	-58.3%
Growth Correlation 5y	22.8%
CAGR 5y	-9.81%
CAGR/Max DD 3y (Calmar Ratio)	-0.18
CAGR/Mean DD 3y (Pain Ratio)	-0.41
Sharpe Ratio 12m	-0.68
Alpha	-58.72
Beta	1.761
Volatility	40.29%
Current Volume	1431.5k
Average Volume 20d	871.6k
Stop Loss	10.6 (-4.8%)
Signal	-0.26

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) 67.17

1. Piotroski 6.0pt = 1.0

2. FCF Yield 13.11% = 5.0

3. FCF Margin 19.88% = 4.97

4. Debt/Equity 0.94 = 2.07

5. Debt/Ebitda 2.27 = -0.53

6. ROIC - WACC (= -1.65)% = -2.07

7. RoE 8.26% = 0.69

8. Rev. Trend 86.49% = 6.49

9. EPS Trend -9.16% = -0.46

What is the price of CARS shares?

As of November 08, 2025, the stock is trading at USD 11.14 with a total of 1,431,477 shares traded.
Over the past week, the price has changed by +3.72%, over one month by -5.83%, over three months by -5.35% and over the past year by -37.59%.

Is Cars.com a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Cars.com (NYSE:CARS) is currently (November 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 67.17 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 8.94 USD . This means that CARS is currently overvalued and has a potential downside of -19.75%.

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	16.7	50%
Analysts Target Price	16.7	50%
ValueRay Target Price	9.9	-11%

CARS Fundamental Data Overview November 04, 2025

Market Cap USD = 659.9m (659.9m USD * 1.0 USD.USD)
P/E Trailing = 17.3226
P/E Forward = 5.7837
P/S = 0.9193
P/B = 1.5475
P/EG = 1.22
Beta = 1.761
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 = 20.6m USD (from shortTermDebt, last fiscal year)
Debt = 455.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 428.2m USD (from netDebt column, last quarter)
Enterprise Value = 1.09b USD (659.9m + Debt 455.9m - CCE 27.7m)
Interest Coverage Ratio = 2.72 (Ebit TTM 84.5m / Interest Expense TTM 31.1m)
FCF Yield = 13.11% (FCF TTM 142.7m / Enterprise Value 1.09b)
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)
Gross Margin QoQ = 82.91% (prev 82.72%)
Tobins Q-Ratio = 1.02 (Enterprise Value 1.09b / Total Assets 1.06b)
Interest Expense / Debt = 1.68% (Interest Expense 7.64m / Debt 455.9m)
Taxrate = 29.68% (2.96m / 9.97m)
NOPAT = 59.4m (EBIT 84.5m * (1 - 29.68%))
Current Ratio = 1.82 (Total Current Assets 179.6m / Total Current Liabilities 98.9m)
Debt / Equity = 0.94 (Debt 455.9m / totalStockholderEquity, last quarter 483.2m)
Debt / EBITDA = 2.27 (Net Debt 428.2m / EBITDA 188.6m)
Debt / FCF = 3.00 (Net Debt 428.2m / FCF TTM 142.7m)
Total Stockholder Equity = 496.8m (last 4 quarters mean from totalStockholderEquity)
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 / Capital Employed (Equity 496.8m + L.T.Debt 455.9m))
RoIC = 6.22% (NOPAT 59.4m / Invested Capital 954.7m)
WACC = 7.87% (E(659.9m)/V(1.12b) * Re(12.50%) + D(455.9m)/V(1.12b) * Rd(1.68%) * (1-Tc(0.30)))
Discount Rate = 12.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.86%
[DCF Debug] Terminal Value 65.80% ; FCFE base≈135.5m ; Y1≈150.3m ; Y5≈196.2m
Fair Price DCF = 29.20 (DCF Value 1.79b / Shares Outstanding 61.4m; 5y FCF grow 12.58% → 3.0% )
EPS Correlation: -9.16 | EPS CAGR: -56.43% | SUE: -4.0 | # QB: 0
Revenue Correlation: 86.49 | Revenue CAGR: 3.04% | SUE: -0.37 | # QB: 0

Additional Sources for CARS Stock

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