Awarener easy mode Awarener analytic mode

Fundamental analysis: CarGurus, Inc. (CARG)

Awarener score: 7.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been growing at an extremely fast pace. It's been more than average in relation to peer companies.
  • CarGurus, Inc. business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 7.3

  • CARG profit margins -on goods and services sold- are usually huge. They stand better than most rival companies.
  • Business profit on sales tends to be very good. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain a slight improvement compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain more than average in relation to rivals.
  • Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 6.7

  • CarGurus, Inc. profit -on goods and services sold- has been growing at a good pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at an excellent step, which has been well ranked against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be in good shape compared to similar stocks.
  • In past years, profits -before income taxes- grew at an excellent speed. It was well ranked against rivals.
  • In the previous years, growth on total net profit has been almost null, and great when measured against peer companies.
  • The company lost money at least once in the past years. It's been excellent in relation to industry peers.

Miscellaneous score: 8.0

  • CARG managed to pay little to no income taxes on profits made in the past years. It's been somewhat better than peers.
  • Research and development expenses consume a low portion of revenues. It's similar to competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 9.0

  • CarGurus, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.2

  • CARG usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands great when measured against rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is more than average in relation to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 7.1

  • CarGurus, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be in good shape compared to similar firms.
  • Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains slightly better than rival firms.
  • Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's in good shape compared to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is well ranked against similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks similar to peers.
  • Normally has approximately only a couple of weekly sales worth in inventory. It comes up as close to average when compared to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers before a month since the purchase. It ranks similar to industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's close to average when compared to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks rather normal in relation to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 5.7

  • CarGurus, Inc. looks heavily expensive in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks similar to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.9


CARG logos

Company at a glance: CarGurus, Inc. (CARG)

Sector, industry: Communication Services, Internet Content & Information

Market Cap: 1.73 billions

Revenues TTM: 1.79 billions

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers. The company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom; and the Autolist and PistonHeads online marketplaces as independent brands in the United States and the United Kingdom. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Awarener score: 7.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Average).