Fundamental analysis: CarGurus, Inc. (CARG)

Awarener score: 6.9

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 (Poor) and growth (Excellent), and the company's inclination to return cash to the stockholders (Lacking).

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 excellent pace. It's been great when measured against peer companies.
CarGurus, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks mediocre against rivals.

Margins score: 7.3

CARG profit margins -on goods and services sold- are usually excellent. They stand well ranked against rival companies.
Business profit on sales tends to be 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 in good shape compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good 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 great when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 7.1

CarGurus, Inc. profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
In recent years, earnings -on operations- have been growing at a very good step, which has been somewhat better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares great when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be a slight improvement 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 low, and almost average when measured against peer companies.
Earnings per share have grown at a low rhythm in past years. It's been rather normal 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 slightly 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 excellent in relation to rival companies.

Profitability score: 9.0

CarGurus, Inc. usually gets excellent returns on the resources it controls. It proves top tier 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 great 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: 5.8

CARG usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands great when measured against rival firms.
The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is similar 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 a slight improvement compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a non-significant portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could greatly boost stockholder rewards if it wished so. It still looks top tier when measured against competitors.

Balance Sheet score: 7.8

CarGurus, Inc. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be in good shape compared to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. 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 more than average in relation to rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has a lot of dollars in cash and equivalents, which is better than most similar enterprises.
Usually, sales are on less than a month credit. It still ranks top tier when measured against peers.
Normally has approximately only a couple of weekly sales worth in inventory. It comes up as a slight improvement compared to competitors.
On average, it takes close to one month from the purchase to charging customers. It happens to be top-notch against peers.
On average pays suppliers before a month from the purchase. It ranks weak when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's rather normal in relation 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 more than average 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 a slight improvement compared 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 top-notch against peer companies.

Valuation score: 6.2

CarGurus, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be almost average when measured against 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 close to average when compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most 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 great when measured against industry firms.
In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up close to average when 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 well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks below average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two 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 somewhat worse than peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. 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 excellent in relation to peer companies.

Total score: 7.2

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

Sector, industry: Communication Services, Internet Content & Information

Market Cap: 2.21 billions

Revenues TTM: 1.66 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.