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Cars.com Inc (CARS)


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Upturn Advisory Summary
10/21/2025: CARS (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $16.71
1 Year Target Price $16.71
3 | Strong Buy |
1 | Buy |
2 | Hold |
0 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.63% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 649.48M USD | Price to earnings Ratio 17.05 | 1Y Target Price 16.71 |
Price to earnings Ratio 17.05 | 1Y Target Price 16.71 | ||
Volume (30-day avg) 7 | Beta 1.76 | 52 Weeks Range 9.56 - 20.47 | Updated Date 10/21/2025 |
52 Weeks Range 9.56 - 20.47 | Updated Date 10/21/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.62 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.71% | Operating Margin (TTM) 8.53% |
Management Effectiveness
Return on Assets (TTM) 3.04% | Return on Equity (TTM) 8.37% |
Valuation
Trailing PE 17.05 | Forward PE 5.78 | Enterprise Value 1175984686 | Price to Sales(TTM) 0.9 |
Enterprise Value 1175984686 | Price to Sales(TTM) 0.9 | ||
Enterprise Value to Revenue 1.64 | Enterprise Value to EBITDA 6.23 | Shares Outstanding 61445496 | Shares Floating 56659506 |
Shares Outstanding 61445496 | Shares Floating 56659506 | ||
Percent Insiders 9.93 | Percent Institutions 96.28 |
Upturn AI SWOT
Cars.com Inc

Company Overview
History and Background
Cars.com Inc. was founded in 1998 by a consortium of newspaper companies to create a centralized online automotive marketplace. It evolved from a classified advertising platform to a comprehensive digital automotive solution.
Core Business Areas
- Marketplace: Connects car shoppers with sellers, offering listings, reviews, and research tools.
- Dealer Solutions: Provides advertising and software solutions for automotive dealers to manage inventory, connect with shoppers, and optimize their online presence.
Leadership and Structure
The company is led by a CEO and a management team overseeing various departments, including sales, marketing, product development, and technology. It operates with a hierarchical structure.
Top Products and Market Share
Key Offerings
- Accu-Trade: Accu-Trade provides vehicle valuation and trade-in solutions for dealers, acquired by Cars.com. Accu-Trade revenue is embedded in Dealer Solutions
- Cars.com Website and App: The core marketplace platform, offering new and used car listings, reviews, and research tools. The platform generates revenue primarily through advertising from dealers and OEMs. Competitors include Autotrader, Edmunds, and Kelley Blue Book.
- Dealer Inspire: Provides website design, digital marketing, and customer engagement solutions for automotive dealers. Dealer Inspire revenue is embedded in Dealer Solutions
Market Dynamics
Industry Overview
The automotive industry is undergoing a digital transformation, with consumers increasingly relying on online research and shopping. The digital automotive marketplace is competitive, with multiple players vying for market share.
Positioning
Cars.com Inc. is positioned as a comprehensive digital automotive marketplace connecting buyers and sellers. Its competitive advantages include its established brand, wide network of dealers, and integrated platform.
Total Addressable Market (TAM)
The total addressable market for digital automotive advertising and solutions is estimated to be multi-billion USD. Cars.com is positioned to capture a share of this TAM through its diverse product offerings and established presence.
Upturn SWOT Analysis
Strengths
- Established brand recognition
- Large network of dealer partnerships
- Comprehensive digital platform
- Strong online presence
Weaknesses
- Dependence on advertising revenue
- Competition from larger players
- Fluctuations in automotive sales
- Technology execution at scale
Opportunities
- Expansion into new markets
- Development of innovative products and services
- Leveraging data analytics to improve customer experience
- Growing digital advertising spending in the automotive sector
Threats
- Economic downturn affecting automotive sales
- Increasing competition from online marketplaces
- Changes in consumer preferences
- New regulations impacting the automotive industry
Competitors and Market Share
Key Competitors
- KMX
- AN
- PAG
Competitive Landscape
Cars.com Inc. competes with other online automotive marketplaces, dealer groups and classified advertising platforms. Competition is intense, with each player seeking to attract both buyers and sellers.
Major Acquisitions
Dealer Inspire
- Year: 2018
- Acquisition Price (USD millions): 165
- Strategic Rationale: Expanded Cars.com's offerings into website design and digital marketing solutions for dealers.
Accu-Trade
- Year: 2021
- Acquisition Price (USD millions): 41
- Strategic Rationale: Expanded Cars.com's offerings into vehicle valuation solutions.
Growth Trajectory and Initiatives
Historical Growth: Cars.com Inc. has experienced varying growth rates over the past years, influenced by market trends and strategic initiatives.
Future Projections: Analyst projections suggest potential growth based on industry trends and company initiatives. Revenue growth projections vary, depending on the analyst.
Recent Initiatives: Recent strategic initiatives include product development, marketing campaigns, and partnerships to enhance customer engagement.
Summary
Cars.com is a recognizable brand in the online automotive marketplace, leveraging a large dealer network. However, it faces stiff competition from larger, well-funded competitors. Recent acquisitions strengthen their dealer solutions. Its dependence on advertising revenue makes it vulnerable to economic downturns and fluctuations in car sales, but the business is well positioned for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Industry Reports
- Analyst Estimates
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual due diligence and consultation with a financial professional.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cars.com Inc
Exchange NYSE | Headquaters Chicago, IL, United States | ||
IPO Launch date 2017-05-18 | Co-Founder, CEO & Director Mr. T. Alex Vetter | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 1800 | Website https://www.cars.com |
Full time employees 1800 | Website https://www.cars.com |
Cars.com Inc., an audience-driven technology company, provides solutions for the automotive industry in the United States. The company offers cars commerce platforms, such as Marketplace, allowing OEMs and dealers to merchandise their inventory and allowing consumers to add and save vehicles to virtual garage and track the Cars.com market value of current vehicle, as well as provides reputation management technology and digital financing tools and access to in-market consumers who are ready to trade-in its vehicle for a new one. It also provides website creation and platform hosting; digital retailing solutions; and trade and appraisal product, including AccuTrade, uses real-time market data and diagnostic scans to determine the right trade-in offer for every VIN in minutes. In addition, the company offers Cars Commerce Media Network products comprising Cars Social, allows dealers to target and serve native advertisements displaying real-time inventory to in-market car shoppers on Facebook and Instagram; VIN Performance Media, a machine-learning for media campaign, including audience targeting, real-time inventory, and ad placement across search, social, and display; In-Market Video, provides OEMs and dealers to pinpoint serious, ready-to-buy shoppers geographically; and In-Market Display, enable dealers and OEMs to extend reach and access audience of in-market car shoppers. The company serves local dealers, OEMs, dealer groups, and auto-adjacent companies. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.

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