CarGurus Inc
NASDAQ:CARG

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CarGurus Inc
NASDAQ:CARG
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Price: 31.4 USD 0.8%
Market Cap: 3.2B USD
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Intrinsic Value

The intrinsic value of one CARG stock under the Base Case scenario is 32.01 USD. Compared to the current market price of 31.4 USD, CarGurus Inc is Undervalued by 2%.

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

CARG Intrinsic Value
32.01 USD
Undervaluation 2%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

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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

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
CarGurus Inc

Current Assets 288.3m
Cash & Short-Term Investments 216.2m
Receivables 51.4m
Other Current Assets 20.8m
Non-Current Assets 465m
PP&E 267.2m
Intangibles 59.4m
Other Non-Current Assets 138.4m
Current Liabilities 112m
Accounts Payable 46.1m
Accrued Liabilities 44.1m
Other Current Liabilities 21.8m
Non-Current Liabilities 189.2m
Other Non-Current Liabilities 189.2m
Efficiency

Earnings Waterfall
CarGurus Inc

Revenue
877m USD
Cost of Revenue
-187.3m USD
Gross Profit
689.7m USD
Operating Expenses
-628.7m USD
Operating Income
61m USD
Other Expenses
-109.9m USD
Net Income
-48.9m USD

Free Cash Flow Analysis
CarGurus Inc

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

In Q2 2024, CarGurus reported consolidated revenue of $219 million, down 9% year-over-year, but saw strong growth in its Marketplace business, with a 14% increase to $195 million. Consolidated adjusted EBITDA rose 23% to $55.6 million, driven by high-margin Marketplace revenue. Despite declining Digital Wholesale volumes, the company maintained profitability by controlling costs. A $127 million goodwill impairment charge was recognized for CarOffer. Looking ahead, Q3 2024 revenue is expected between $212 million and $232 million, with non-GAAP EBITDA forecasted at $56 million to $64 million. Non-GAAP EPS is anticipated to be $0.38 to $0.44 per share.

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 3-Years Revenue Growth
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 86/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Short-Term Solvency
86/100
Solvency
Score

CarGurus Inc's solvency score is 86/100. 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 drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CARG is 29.79 USD with a low forecast of 16.16 USD and a high forecast of 36.75 USD.

Lowest
Price Target
16.16 USD
49% Downside
Average
Price Target
29.79 USD
5% Downside
Highest
Price Target
36.75 USD
17% 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
No dividends
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Ownership

CARG Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
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12 Months
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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

3.2B 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 32.01 USD.

Is CARG stock undervalued or overvalued?

Compared to the current market price of 31.4 USD, CarGurus Inc is Undervalued by 2%.

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