NYSE
CARS
Last Price
US $11.32
KEY FIGURES
MKT CAP
$0.6B
EPS
TTM
$0.46
PEG
TTM
N/M
P/E
TTM
24.74x
P/S
TTM
0.83x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
5.71%
Return on equity
ROIC: 4.59%
Valuation History
24.7X
Price to Earnings
EV/EBITDA: 7X
Cash flow
Profit margin
5.73%
(FY vs FY)
EBITDA Y/Y
-
(FY vs FY)
Cash flow Y/Y
3.86%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $11.32
139.31%
Default assumptions
EBITDA Multiple
Fair Value
Market $11.32
32.69%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Cars.com Inc. cash flow to debt ratio of 32.37% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Cars.com Inc.'s free cash flow has decreased -1.45% from $149.52M last year to $147.35M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Cars.com Inc.'s debt to equity ratio is 0.98, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Cars.com Inc.'s debt has increased relative to shareholder equity from 0.89 last year to 0.98 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Cars.com Inc. has a net debt to EBITDA ratio of 2.20x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Cars.com Inc.'s interest coverage ratio of 4.55 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Cars.com Inc.'s profit margin has decreased (-44.29%) in the last year from 6.70% to 3.73%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Cars.com Inc.'s short-term assets of $211.59M exceed its short-term liabilities of $113.39M
Decreasing performance - ROA.
Cars.com Inc.'s return on assets of 2.57% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Cars.com Inc.'s return on equity of 5.71%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Cars.com Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Cars.com Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Cars.com Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Cars.com Inc. has a free cash flow yield of 24.52%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Cars.com Inc.'s yearly earnings has decreased -58.39% since last year from $48.19M to $20.05M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Cars.com Inc.'s yearly revenue has increased 0.57% since last year from $719.15M to $723.24M, signaling increasing performance
Decreasing performance - ROIC.
ROIC 4.59% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
Cars.com Inc.'s 3-year revenue CAGR of 3.42% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Cars.com Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Cars.com Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Cars.com Inc. is undervalued relative to its fair value price of 27.09 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Cars.com Inc. has an earnings yield of 4.27%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Cars.com Inc. is undervalued relative to its fair value price of 15.02 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Cars.com Inc. has an EV/EBITDA ratio of 7.00x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Cars.com Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Cars.com Inc. has a price-to-book ratio of 1.37x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Cars.com Inc. has a price-to-sales ratio of 0.83x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue