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Upturn AI Summary - About
Cars.com Inc(CARS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for CARS
11/09/2026: CARS (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Cars.com Inc operates as a leading digital marketplace, connecting car buyers with dealers through its well-known website and integrated software solutions. Its core strength lies in its established brand and the 'stickiness' of its Dealer Inspire services, which create a consistent, recurring revenue base. The primary growth opportunity involves scaling its digital retail features to capture more of the online vehicle buying journey. However, the company faces intense competition from high-traffic rivals and sensitivity to automotive inventory cycles. The stock may suit value-oriented investors who prioritize a steady, established digital business, though monitoring dealer churn and digital ad trends remains essential.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers moderate growth potential tied to digital automotive transformation but faces significant competition. |
| Momentum investor | Weak fit | This style is conditional on a positive Upturn signal, which is not currently the primary characteristic of the stock. |
| Value investor | Strong fit | The stock often trades at valuations that may appeal to value investors looking for established digital businesses. |
| Dividend investor | Weak fit | The company does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | Automotive sector sensitivity and competition create volatility that may not suit low-risk preferences. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Market fluctuations in the automotive and tech sectors often impact the stock price. |
| Valuation risk | Medium | The stock price is sensitive to changes in long-term earnings growth expectations. |
| Competition risk (Digital Marketplace Competition) | High | Aggressive competition from platforms like CarGurus puts pressure on pricing and market share. |
| Business quality | Medium | The company has a solid, established footprint, though it operates in a highly competitive digital segment. |
| Dividend income | Low / none | The absence of a dividend means investors rely entirely on capital gains. |
| Execution risk | Medium | Successful integration and adoption of new digital retail features are critical for long-term performance. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 6.27% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 11/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 695.21M USD | Price to earnings Ratio 18.04 | 1Y Target Price 14.42 |
Price to earnings Ratio 18.04 | 1Y Target Price 14.42 | ||
Volume (30-day avg) 905.3K shares | Beta 1.71 | 52 Weeks Range 7.40 - 14.02 | Updated Date 11/08/2026 |
52 Weeks Range 7.40 - 14.02 | Updated Date 11/08/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.74 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Marketplace Listings | Subscription revenue from dealers to list new and used inventory on the Cars.com platform. | This is the company's core recurring revenue source. |
| Dealer Solutions | Revenue from website platforms, digital marketing, and lead management tools like Dealer Inspire. | This segment provides higher-growth potential through value-added tech services. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-11-05 | When Before Market | Estimate 0.46 | Actual 0.51 |
Profitability
Profit Margin 5.92% | Operating Margin (TTM) 15.88% |
Management Effectiveness
Return on Assets (TTM) 5.67% | Return on Equity (TTM) 9.28% |
Valuation
Trailing PE 18.04 | Forward PE 5.78 | Enterprise Value 1.07B | Price to Sales(TTM) 0.96 |
Enterprise Value 1.07B | Price to Sales(TTM) 0.96 | ||
Enterprise Value to Revenue 1.48 | Enterprise Value to EBITDA 6.68 | Shares Outstanding 52.08M | Shares Floating 43.35M |
Shares Outstanding 52.08M | Shares Floating 43.35M | ||
Percent Insiders 13.22 | Percent Institutions 109.47 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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