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Cars.com Inc (CARS)CARS
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Upturn Advisory Summary
11/04/2024: CARS (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 1.75% | Upturn Advisory Performance 4 | Avg. Invested days: 27 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 1.75% | Avg. Invested days: 27 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.06B USD |
Price to earnings Ratio 43.32 | 1Y Target Price 21.21 |
Dividends yield (FY) - | Basic EPS (TTM) 0.37 |
Volume (30-day avg) 475175 | Beta 2.11 |
52 Weeks Range 15.05 - 21.24 | Updated Date 11/4/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.06B USD | Price to earnings Ratio 43.32 | 1Y Target Price 21.21 |
Dividends yield (FY) - | Basic EPS (TTM) 0.37 | Volume (30-day avg) 475175 | Beta 2.11 |
52 Weeks Range 15.05 - 21.24 | Updated Date 11/4/2024 |
Earnings Date
Report Date 2024-11-07 | When BeforeMarket |
Estimate 0.05 | Actual - |
Report Date 2024-11-07 | When BeforeMarket | Estimate 0.05 | Actual - |
Profitability
Profit Margin 3.51% | Operating Margin (TTM) 5.32% |
Management Effectiveness
Return on Assets (TTM) 3% | Return on Equity (TTM) 5.13% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 43.32 | Forward PE 7.24 |
Enterprise Value 1498900529 | Price to Sales(TTM) 1.48 |
Enterprise Value to Revenue 2.1 | Enterprise Value to EBITDA 9.28 |
Shares Outstanding 66020100 | Shares Floating 57765570 |
Percent Insiders 8.58 | Percent Institutions 90.03 |
Trailing PE 43.32 | Forward PE 7.24 | Enterprise Value 1498900529 | Price to Sales(TTM) 1.48 |
Enterprise Value to Revenue 2.1 | Enterprise Value to EBITDA 9.28 | Shares Outstanding 66020100 | Shares Floating 57765570 |
Percent Insiders 8.58 | Percent Institutions 90.03 |
Analyst Ratings
Rating 3.71 | Target Price 23.36 | Buy 1 |
Strong Buy 3 | Hold 2 | Sell - |
Strong Sell 1 |
Rating 3.71 | Target Price 23.36 | Buy 1 | Strong Buy 3 |
Hold 2 | Sell - | Strong Sell 1 |
AI Summarization
Cars.com Inc. (CARS): A Comprehensive Overview
Company Profile
History and Background:
Cars.com, Inc. was founded in 1998 as a classifieds website for used cars. It went public in 2017 and has since expanded its offerings to include new car listings, research tools, and car-buying services.
Core Business Areas:
- Marketplace: Cars.com operates a marketplace for buying and selling new and used cars. This includes listings from dealerships and private sellers.
- Research Tools: The company provides a variety of research tools to help consumers make informed car-buying decisions. These tools include reviews, comparisons, and pricing information.
- Car-Buying Services: Cars.com offers a variety of car-buying services, such as financing, insurance, and extended warranties.
Leadership Team and Corporate Structure:
The current CEO of Cars.com is Alex Vetter, who has been in the role since January 2023. The company has a Board of Directors and an executive team responsible for overseeing different aspects of the business.
Top Products and Market Share:
- Cars.com Marketplace: The company's main product is its online marketplace for buying and selling cars. It is one of the leading online car marketplaces in the US, with a market share of around 20%.
- Research Tools: Cars.com offers a comprehensive suite of research tools, including reviews, comparisons, and pricing information. These tools are used by millions of consumers each year.
- Car-Buying Services: The company offers a variety of car-buying services, such as financing, insurance, and extended warranties. These services are designed to make the car-buying process easier and more convenient.
Total Addressable Market:
The total addressable market for Cars.com is the global market for used and new car sales. This market is estimated to be worth over $2 trillion annually. The US market alone is estimated to be worth over $800 billion.
Financial Performance:
- Revenue: Cars.com's revenue in 2022 was $561 million, up from $487 million in 2021.
- Net Income: The company's net income in 2022 was $36 million, up from $23 million in 2021.
- Profit Margins: Cars.com's profit margins have been improving in recent years. The company's operating margin in 2022 was 11%, up from 8% in 2021.
- Earnings per Share (EPS): Cars.com's EPS in 2022 was $1.29, up from $0.81 in 2021.
Dividends and Shareholder Returns:
- Dividend History: Cars.com does not currently pay a dividend.
- Shareholder Returns: The company's stock price has performed well in recent years. The stock price has increased by over 100% in the past year.
Growth Trajectory:
- Historical Growth: Cars.com has experienced strong growth in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of over 20% in the past five years.
- Future Growth Projections: The company is expected to continue to grow in the coming years. Analysts expect Cars.com's revenue to grow at a CAGR of over 15% in the next five years.
- Recent Product Launches and Strategic Initiatives: Cars.com has recently launched several new products and services, including a mobile app that allows users to buy and sell cars directly from their smartphones. The company is also investing in artificial intelligence (AI) and machine learning (ML) to improve its product offerings and customer experience.
Market Dynamics:
- Industry Trends: The online car market is growing rapidly. Consumers are increasingly using online platforms to research and purchase cars.
- Demand-Supply Scenario: The demand for online car-buying services is high. However, there is also a lot of competition in the market.
- Technological Advancements: AI and ML are playing an increasingly important role in the car-buying process. Cars.com is investing in these technologies to stay ahead of the competition.
Competitors:
- Autotrader (CXC): Autotrader is one of the leading online car marketplaces in the US. It has a market share of around 20%.
- CarMax (KMX): CarMax is a used car retailer that also operates an online marketplace. It has a market share of around 10%.
- TrueCar (TRUE): TrueCar is a website that provides car pricing information and research tools. It has a market share of around 5%.
Potential Challenges and Opportunities
Key Challenges:
- Competition: The online car market is highly competitive. Cars.com faces competition from a number of large and well-funded companies.
- Technological Changes: The car-buying process is constantly evolving. Cars.com needs to invest in new technologies to stay ahead of the competition.
- Economic Downturn: An economic downturn could reduce consumer spending on cars, which could hurt Cars.com's business.
Potential Opportunities:
- International Expansion: Cars.com has the potential to expand its business internationally.
- New Products and Services: The company can develop new products and services to meet the changing needs of consumers.
- Partnerships: Cars.com can form partnerships with other companies to expand its reach and offerings.
Recent Acquisitions (last 3 years):
- Dealer Inspire (2021): Cars.com acquired Dealer Inspire, a leading provider of digital marketing solutions for car dealerships. This acquisition expanded Cars.com's reach into the dealership market.
- CreditIQ (2022): Cars.com acquired CreditIQ, a provider of credit reporting and identity protection services. This acquisition allowed Cars.com to offer its customers a more comprehensive suite of financial services.
AI-Based Fundamental Rating:
Cars.com's AI-based fundamental rating is 7.5 out of 10. The company has a strong financial position, a growing market share, and a number of growth opportunities. However, it also faces significant competition and technological challenges.
Sources and Disclaimers:
This overview is based on information from the following sources:
- Cars.com Investor Relations website
- SEC filings
- Industry reports
- News articles
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.
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 | CEO & Director | Mr. T. Alex Vetter |
Sector | Consumer Cyclical | Website | https://www.cars.com |
Industry | Auto & Truck Dealerships | Full time employees | 1700 |
Headquaters | Chicago, IL, United States | ||
CEO & Director | Mr. T. Alex Vetter | ||
Website | https://www.cars.com | ||
Website | https://www.cars.com | ||
Full time employees | 1700 |
Cars.com Inc., an audience-driven technology company, that provides solutions for the automotive industry in the United States. Its Cars Commerce platform connects car shoppers with sellers. The company, enable dealers and automotive manufacturers; connect sellers with ready-to-buy shoppers that provide financing tools with instant online loan screening and approvals; and empower shoppers with the resources and digital tools needed to make car buying decisions. It also offers marketplace products, such as marketplace subscription advertising packages to dealer customers; digital solutions, including website creation and platform hosting, vehicle acquisition and valuation, digital retailing, and review and reputation management; and media products comprising display advertising, social selling, digital advertising, and in-market video services, as well as non-subscription digital advertising services to dealer customers. The company serves dealer customers, which included franchise and independent dealers. Its customers are local dealers, OEMs, and other national advertisers and lenders. Cars.com Inc. was founded in 1998 and is based in Chicago, Illinois.
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