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CARS 
Cars.com Inc (CARS)
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Upturn Advisory Summary
01/06/2026: 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 -4.03% | Avg. Invested days 29 | 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 01/06/2026 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 752.71M USD | Price to earnings Ratio 26.63 | 1Y Target Price 16.64 |
Price to earnings Ratio 26.63 | 1Y Target Price 16.64 | ||
Volume (30-day avg) 7 | Beta 1.45 | 52 Weeks Range 9.56 - 19.00 | Updated Date 01/6/2026 |
52 Weeks Range 9.56 - 19.00 | Updated Date 01/6/2026 | ||
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 - | When - | Estimate - | Actual - |
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 26.63 | Forward PE 5.42 | Enterprise Value 1116285746 | Price to Sales(TTM) 1.05 |
Enterprise Value 1116285746 | Price to Sales(TTM) 1.05 | ||
Enterprise Value to Revenue 1.55 | Enterprise Value to EBITDA 6.56 | Shares Outstanding 59813268 | Shares Floating 55059309 |
Shares Outstanding 59813268 | Shares Floating 55059309 | ||
Percent Insiders 10.53 | Percent Institutions 105.14 |
Upturn AI SWOT
Cars.com Inc
Company Overview
History and Background
Cars.com Inc. was founded in 1998 by a group of automotive dealers. It evolved into a leading online marketplace for car shoppers and sellers. In 2017, it was spun off from its parent company, Tegna Inc., and became an independent public company. Its primary function is to connect car buyers with dealers and provide resources for car research and ownership.
Core Business Areas
- Digital Marketing Solutions: Cars.com offers digital marketing solutions to automotive dealers, including lead generation, advertising, and website services. These tools help dealers connect with potential buyers online.
- Consumer Marketplace: The core of Cars.com is its online platform where consumers can search for new and used cars, compare models, read reviews, and find local dealerships. It also provides tools for selling or trading in a current vehicle.
- Data and Analytics: Cars.com leverages its vast dataset to provide insights into market trends, consumer behavior, and dealer performance. This data informs their product development and services offered.
Leadership and Structure
The leadership team at Cars.com Inc. is headed by a Chief Executive Officer and supported by various C-suite executives responsible for different operational areas such as marketing, technology, finance, and product development. The company operates with a divisional structure focused on its marketplace and dealer services.
Top Products and Market Share
Key Offerings
- Cars.com Marketplace: The flagship online platform where consumers browse new and used car listings. It features search filters, detailed vehicle information, pricing tools, and dealer reviews. Competitors include CarGurus (CARG), AutoTrader.com (part of Cox Automotive), and Vroom (VRM).
- Dealer Solutions: A suite of digital marketing tools for dealerships, including advertising packages, lead management systems, and website development services. These solutions aim to enhance dealer visibility and lead conversion. Competitors include Dealer.com (part of Dealertrack/Cox Automotive) and CDK Global.
- Digital Advertising: Advertising opportunities for manufacturers and other automotive-related businesses on the Cars.com platform to reach a targeted audience. Competitors include Google (GOOGL), Meta Platforms (META), and other automotive-specific advertising networks.
Market Dynamics
Industry Overview
The automotive retail industry is undergoing significant digital transformation. Online marketplaces and digital tools are increasingly important for both consumers and dealerships. The industry faces challenges related to inventory availability, changing consumer preferences, and evolving technology.
Positioning
Cars.com Inc. is a well-established player in the online automotive marketplace. Its competitive advantages include a strong brand recognition, a large inventory of vehicles, and a loyal dealer network. It aims to be a comprehensive resource for car buying and selling.
Total Addressable Market (TAM)
The Total Addressable Market for online automotive marketplaces and digital advertising solutions for dealerships is substantial, encompassing billions of dollars annually in advertising spend and transaction values related to car sales. Cars.com is well-positioned to capture a significant portion of this market by continuing to enhance its platform and dealer services.
Upturn SWOT Analysis
Strengths
- Strong brand recognition and established market presence.
- Extensive inventory of new and used vehicles.
- Large and loyal base of automotive dealer partners.
- Comprehensive suite of digital marketing tools for dealers.
- Valuable consumer data and insights.
Weaknesses
- Dependence on dealer advertising revenue.
- Intense competition from established and emerging online platforms.
- Need to continuously innovate to keep pace with technological advancements.
- Potential for economic downturns to impact car sales and advertising spend.
Opportunities
- Expansion into adjacent automotive services (e.g., financing, insurance).
- Leveraging AI and machine learning for personalized consumer experiences.
- Growth in the electric vehicle (EV) market and associated consumer interest.
- Further development of data analytics and insights for dealers and manufacturers.
- Strategic partnerships and acquisitions to broaden service offerings.
Threats
- Disruption from new technologies and business models in the automotive sector.
- Changes in consumer online car buying behavior.
- Increased competition from direct-to-consumer sales models.
- Economic recessions impacting automotive sales.
- Data privacy regulations and cybersecurity risks.
Competitors and Market Share
Key Competitors
- CarGurus (CARG)
- Cox Automotive (Private)
- Lithia Motors (LAD)
- Sonic Automotive (SAH)
Competitive Landscape
Cars.com Inc. holds a significant market share but faces intense competition from other online marketplaces, large dealership groups, and technology providers. Its advantages lie in its established brand and dealer relationships, while disadvantages could include slower adaptation to new technologies or market shifts compared to more agile competitors.
Growth Trajectory and Initiatives
Historical Growth: Cars.com has demonstrated consistent growth in its digital marketplace and dealer services over the past decade, driven by increasing online car shopping trends and dealer adoption of digital marketing tools. However, growth rates can be subject to cyclical factors in the automotive industry.
Future Projections: Analyst projections for Cars.com Inc. typically forecast moderate revenue growth in the mid-single digits, driven by continued strength in its core marketplace and expansion of dealer services. Projections often consider the company's ability to adapt to evolving consumer preferences and technological advancements.
Recent Initiatives: Recent initiatives may include investments in AI-powered tools, enhancements to the consumer user experience, development of new advertising products for manufacturers, and strategies to attract younger car buyers.
Summary
Cars.com Inc. is a well-established leader in the online automotive marketplace with strong brand recognition and a loyal dealer network. Its core strength lies in connecting car buyers with sellers and providing essential digital marketing tools for dealerships. However, the company must navigate intense competition and evolving technological landscapes. Continued innovation in its platform and services, alongside strategic acquisitions or partnerships, will be crucial for sustained growth and market leadership.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (SEC)
- Financial Data Providers (e.g., Refinitiv, Bloomberg)
- Industry Analyst Reports
- Company Website
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It does not constitute financial advice. Market share data is an estimation and can fluctuate. Specific financial figures are illustrative and require verification from the latest official reports.
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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