CarGurus Inc
NASDAQ:CARG

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CarGurus Inc
NASDAQ:CARG
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Price: 35.62 USD -0.31% Market Closed
Market Cap: 3.7B USD
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Intrinsic Value

The intrinsic value of one CARG stock under the Base Case scenario is 29.17 USD. Compared to the current market price of 35.62 USD, CarGurus Inc is Overvalued by 18%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

CARG Intrinsic Value
29.17 USD
Overvaluation 18%
Intrinsic Value
Price
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Base Case
Best Case

Valuation Backtest
CarGurus Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
CarGurus Inc

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
CarGurus Inc

Current Assets 326.6m
Cash & Short-Term Investments 246.7m
Receivables 56.5m
Other Current Assets 23.4m
Non-Current Assets 451.5m
PP&E 253.7m
Intangibles 59.6m
Other Non-Current Assets 138.2m
Current Liabilities 110.6m
Accounts Payable 47.2m
Accrued Liabilities 41.5m
Other Current Liabilities 21.9m
Non-Current Liabilities 184.1m
Other Non-Current Liabilities 184.1m
Efficiency

Earnings Waterfall
CarGurus Inc

Revenue
889m USD
Cost of Revenue
-171.2m USD
Gross Profit
717.7m USD
Operating Expenses
-635.6m USD
Operating Income
82.1m USD
Other Expenses
-130.8m USD
Net Income
-48.7m USD

Free Cash Flow Analysis
CarGurus Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

CarGurus reported a 5% increase in Q3 revenue to $231 million, with Marketplace sales surging 15% year-over-year, totaling $204 million. The latter is attributed to an expansion in dealer partnerships and a growing adoption of premium subscription services. Gross margin improved to 83%, and adjusted EBITDA rose 33% to $64.9 million, leading to earnings per share of $0.45, up 32%. For Q4, revenue is expected between $219 million and $239 million, with Marketplace revenues predicted to grow 13-17%. Despite anticipated slower wholesale activity, overall growth and profitability remain optimistic due to ongoing innovations and enhancements in service offerings.

What is Earnings Call?
Fundamental Scores

CARG Profitability Score
Profitability Due Diligence

CarGurus Inc's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Year Average ROIC
Positive ROIC
51/100
Profitability
Score

CarGurus Inc's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

CARG Solvency Score
Solvency Due Diligence

CarGurus Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Short-Term Solvency
87/100
Solvency
Score

CarGurus Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CARG Price Targets Summary
CarGurus Inc

Wall Street analysts forecast CARG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CARG is 38.64 USD with a low forecast of 16.16 USD and a high forecast of 47.25 USD.

Lowest
Price Target
16.16 USD
55% Downside
Average
Price Target
38.64 USD
8% Upside
Highest
Price Target
47.25 USD
33% Upside
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Dividends

CarGurus Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for CARG is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Ownership

CARG Insider Trading
Buy and sell transactions by insiders

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Period Sold Bought Net
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CARG News

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Profile

CarGurus Inc Logo
CarGurus Inc

Country

United States of America

Industry

Media

Market Cap

3.7B USD

Dividend Yield

0%

Description

Cargurus, Inc. engages in the provision of online auto shopping. The company is headquartered in Cambridge, Massachusetts and currently employs 1,203 full-time employees. The company went IPO on 2017-10-12. The firm offers an online automotive platform for buying and selling vehicles. The firm's segments include United States and International. The CarGurus marketplace enables consumers to purchase or sell a vehicle either online or in-person; and enables dealerships to accurately price, effectively market, instantly acquire and sell vehicles, all with a nationwide reach. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers. The firm operates two online marketplaces as independent brands: PistonHeads in the United Kingdom and Autolist in the United States. The company offers paid listings subscriptions for dealers and display advertising products through the PistonHeads Website, as well as paid listings subscriptions for dealers through the Autolist Website.

Contact

MASSACHUSETTS
Cambridge
2 Canal Park Ste 4
+16173540068.0
www.cargurus.com

IPO

2017-10-12

Employees

1 203

Officers

Founder & Executive Chairman
Mr. E. Langley Steinert
CEO & Director
Mr. Jason M. Trevisan
CFO, Principal Financial Officer & Principal Accounting Officer
Ms. Elisa Palazzo
Chief Technology Officer
Mr. Matthew Todd Quinn
Chief Executive Officer of CarOffer
Mr. Zachary Hallowell
COO & President
Mr. Samuel Zales
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VP & Head of Investor Relations
Ms. Kirndeep Singh
General Counsel & Corporate Secretary
Mr. Javier Zamora
Chief Marketing Officer
Ms. Dafna Sarnoff
Chief People Officer
Ms. Jennifer Hanson
Show Less

See Also

Discover More
What is the Intrinsic Value of one CARG stock?

The intrinsic value of one CARG stock under the Base Case scenario is 29.17 USD.

Is CARG stock undervalued or overvalued?

Compared to the current market price of 35.62 USD, CarGurus Inc is Overvalued by 18%.

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