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CARS 
Cars.com Inc (CARS)
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Upturn Advisory Summary
12/05/2025: CARS (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $16.64
1 Year Target Price $16.64
| 3 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -7.62% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 744.11M USD | Price to earnings Ratio 26.33 | 1Y Target Price 16.64 |
Price to earnings Ratio 26.33 | 1Y Target Price 16.64 | ||
Volume (30-day avg) 7 | Beta 1.45 | 52 Weeks Range 9.56 - 19.51 | Updated Date 12/6/2025 |
52 Weeks Range 9.56 - 19.51 | Updated Date 12/6/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.46 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-11-06 | When - | Estimate 0.4864 | Actual 0.48 |
Profitability
Profit Margin 4.16% | Operating Margin (TTM) 9.26% |
Management Effectiveness
Return on Assets (TTM) 3.34% | Return on Equity (TTM) 6.11% |
Valuation
Trailing PE 26.33 | Forward PE 5.57 | Enterprise Value 1136024125 | Price to Sales(TTM) 1.03 |
Enterprise Value 1136024125 | Price to Sales(TTM) 1.03 | ||
Enterprise Value to Revenue 1.58 | Enterprise Value to EBITDA 6.67 | Shares Outstanding 59813268 | Shares Floating 55020431 |
Shares Outstanding 59813268 | Shares Floating 55020431 | ||
Percent Insiders 10.2 | Percent Institutions 104.48 |
Upturn AI SWOT
Cars.com Inc
Company Overview
History and Background
Cars.com Inc. was founded in 1998 as a joint venture between existing automotive retailers. It launched its website in 2000, providing a platform for consumers to research, find, and buy new and used cars. Over the years, Cars.com has evolved from a simple listing service to a comprehensive automotive marketplace, incorporating advanced digital marketing solutions for dealerships. It was acquired by Gannett in 2017 and subsequently spun off as an independent public company in 2018.
Core Business Areas
- Digital Marketing Solutions: Provides advertising and marketing services to automotive dealerships to help them attract and connect with potential buyers. This includes features like vehicle listings, lead generation tools, and performance analytics.
- Online Marketplace: Offers a consumer-facing platform for browsing new and used car inventory, researching vehicles, and connecting with dealerships. This segment encompasses the core website and mobile applications.
- Data and Analytics: Leverages its vast dataset to offer insights and solutions to automotive manufacturers and dealerships, aiding in market understanding and strategic planning.
Leadership and Structure
Cars.com Inc. is a publicly traded company with a board of directors and an executive leadership team responsible for its strategic direction and operational management. Key leadership roles typically include a CEO, CFO, and heads of various business units.
Top Products and Market Share
Key Offerings
- Description: Includes features such as enhanced vehicle listings, digital advertising placements, lead generation services, and analytics tools designed to drive dealership traffic and sales. Revenue is primarily generated through subscriptions and performance-based fees from dealerships. Competitors include platforms like Dealer.com (Dealertrack), Automotive.com, and general digital advertising platforms used by dealerships.
- Product Name 1: Dealer offering (Advertising & Marketing Solutions)
- Description: The core website and mobile app where consumers can search for new and used vehicles, compare models, read reviews, and find local dealerships. While direct revenue from consumers is minimal, it serves as the primary funnel for driving dealership engagement and advertising spend. Competitors include large online automotive marketplaces like CarGurus (CARG), AutoTrader.com, and manufacturer websites.
- Product Name 2: Consumer Marketplace
Market Dynamics
Industry Overview
The automotive retail industry is undergoing significant digital transformation. Dealerships are increasingly reliant on online platforms for lead generation and customer acquisition. The market is characterized by intense competition among online listing sites, digital marketing service providers, and evolving direct-to-consumer sales models from manufacturers.
Positioning
Cars.com Inc. is positioned as a leading digital automotive marketplace and solutions provider for dealerships. Its competitive advantages lie in its extensive inventory, strong brand recognition, established relationships with a large base of dealerships, and its integrated suite of digital marketing tools. It aims to bridge the gap between online research and offline purchasing.
Total Addressable Market (TAM)
The TAM for online automotive advertising and marketplace services is substantial, estimated to be in the tens of billions of dollars globally, driven by new and used car sales. Cars.com Inc. targets the US market, with its TAM encompassing dealership advertising spend and consumer online car shopping behavior. The company is a significant player within this TAM, particularly among franchised and independent dealerships.
Upturn SWOT Analysis
Strengths
- Established brand recognition and consumer trust.
- Large inventory of new and used vehicles.
- Extensive network of dealership customers.
- Integrated suite of digital marketing and lead generation tools.
- Strong data analytics capabilities.
Weaknesses
- Reliance on third-party data for inventory feeds.
- Intense competition from established and emerging players.
- Potential for disintermediation by direct-to-consumer sales models.
- Slower adoption of new technologies compared to some competitors.
Opportunities
- Expansion of digital advertising and marketing solutions.
- Leveraging AI and data analytics for personalized consumer experiences and dealer insights.
- Partnerships with automotive manufacturers and other industry players.
- Growth in the Certified Pre-Owned (CPO) market.
- International market expansion (though primarily US-focused currently).
Threats
- Increasing competition from other online marketplaces and aggregators.
- Changes in consumer buying behavior and preference for online transactions.
- Economic downturns impacting new and used car sales.
- Data privacy regulations and their impact on digital advertising.
- Disruptive business models from new market entrants.
Competitors and Market Share
Key Competitors
- CarGurus (CARG)
- AutoTrader.com (Cox Automotive)
- Dealer.com (Dealertrack)
- Edmunds.com
Competitive Landscape
Cars.com Inc. competes in a crowded digital automotive marketplace. Its advantage lies in its established dealer relationships and a comprehensive suite of tools. However, competitors like CarGurus have gained traction with their consumer-friendly pricing models and inventory aggregation. Cox Automotive, with its broad portfolio, represents a significant and diversified competitor. The landscape is constantly evolving with technological advancements and changing consumer preferences.
Growth Trajectory and Initiatives
Historical Growth: Cars.com's growth has been influenced by the digital evolution of the automotive industry. Post-spin-off, the company has focused on optimizing its dealer solutions and marketplace offerings. Growth has likely seen fluctuations due to market conditions and competitive intensity.
Future Projections: Future growth is projected to be driven by enhancing its digital marketing products for dealers, expanding its data and analytics services, and potentially exploring new revenue streams within the automotive ecosystem. Analyst estimates would provide quantitative projections for revenue and earnings growth. (Specific projections require current analyst reports.)
Recent Initiatives: Recent initiatives may include investments in technology to improve user experience and dealer tools, strategic partnerships, and efforts to streamline operations for greater efficiency and profitability.
Summary
Cars.com Inc. is a significant player in the US online automotive marketplace, leveraging its strong brand and dealer network to offer digital marketing solutions. Its core strength lies in its integrated platform for dealerships. However, it faces intense competition and the evolving nature of automotive sales models. Continued investment in technology and adapting to consumer preferences will be key to its future success and mitigating threats.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (SEC)
- Industry Market Research Reports
- Financial News and Analysis Websites
Disclaimers:
This analysis is based on publicly available information and general industry knowledge. Financial data and market share figures are estimates and subject to change. This is not investment advice. Investors should conduct their own due diligence 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 | 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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