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CarGurus

Nasdaq:CARG
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CARG
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Media
Company description

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. The last earnings update was 49 days ago. More info.


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  • CarGurus has significant price volatility in the past 3 months.
CARG Share Price and Events
7 Day Returns
-13.1%
NasdaqGS:CARG
-3.5%
US Interactive Media and Services
-4.1%
US Market
1 Year Returns
-60.3%
NasdaqGS:CARG
-13.8%
US Interactive Media and Services
-14.9%
US Market
CARG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CarGurus (CARG) -13.1% -33.5% -54.7% -60.3% - -
US Interactive Media and Services -3.5% -18.1% -22.4% -13.8% 17.2% 66%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • CARG underperformed the Interactive Media and Services industry which returned -13.8% over the past year.
  • CARG underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
CARG
Industry
5yr Volatility vs Market
Related Companies

CARG Value

 Is CarGurus undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CarGurus to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CarGurus.

NasdaqGS:CARG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CARG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.03 (1 + (1- 21%) (3.76%))
1.04
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.04 * 5.44%)
7.4%

Discounted Cash Flow Calculation for NasdaqGS:CARG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CarGurus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CARG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.4%)
2020 51.30 Analyst x6 47.76
2021 96.16 Analyst x5 83.37
2022 128.00 Analyst x2 103.33
2023 130.00 Analyst x1 97.71
2024 161.00 Analyst x1 112.67
2025 179.03 Est @ 11.2% 116.66
2026 194.01 Est @ 8.36% 117.71
2027 206.38 Est @ 6.38% 116.59
2028 216.67 Est @ 4.99% 113.97
2029 225.36 Est @ 4.01% 110.37
Present value of next 10 years cash flows $1,020.00
NasdaqGS:CARG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $225.36 × (1 + 1.74%) ÷ (7.4% – 1.74%)
$4,051.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,051.38 ÷ (1 + 7.4%)10
$1,984.21
NasdaqGS:CARG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,020.00 + $1,984.21
$3,004.21
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,004.21 / 112.30
$26.75
NasdaqGS:CARG Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.75
Current discount Discount to share price of $16.47
= -1 x ($16.47 - $26.75) / $26.75
38.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CarGurus is available for.
Intrinsic value
38%
Share price is $16.47 vs Future cash flow value of $26.75
Current Discount Checks
For CarGurus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CarGurus's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CarGurus's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CarGurus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CarGurus's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CARG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.38
NasdaqGS:CARG Share Price ** NasdaqGS (2020-04-02) in USD $16.47
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 30 Publicly-Listed Interactive Media and Services Companies 23.32x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CarGurus.

NasdaqGS:CARG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CARG Share Price ÷ EPS (both in USD)

= 16.47 ÷ 0.38

43.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CarGurus is overvalued based on earnings compared to the US Interactive Media and Services industry average.
  • CarGurus is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does CarGurus's expected growth come at a high price?
Raw Data
NasdaqGS:CARG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
24.6%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 25 Publicly-Listed Interactive Media and Services Companies 1.46x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

NasdaqGS:CARG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.55x ÷ 24.6%

1.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CarGurus is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CarGurus's assets?
Raw Data
NasdaqGS:CARG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $2.29
NasdaqGS:CARG Share Price * NasdaqGS (2020-04-02) in USD $16.47
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 60 Publicly-Listed Interactive Media and Services Companies 1.68x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:CARG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CARG Share Price ÷ Book Value per Share (both in USD)

= 16.47 ÷ 2.29

7.19x

* Primary Listing of CarGurus.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CarGurus is overvalued based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess CarGurus's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. CarGurus has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CARG Future Performance

 How is CarGurus expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CarGurus expected to grow at an attractive rate?
  • CarGurus's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • CarGurus's earnings growth is expected to exceed the United States of America market average.
  • CarGurus's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CARG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CARG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 24.6%
NasdaqGS:CARG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 10.5%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 13.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CARG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CARG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 815 192 143 1
2023-12-31 904 157 122 2
2022-12-31 851 150 82 6
2021-12-31 750 129 59 12
2020-12-31 565 38 -4 5
2020-04-03
NasdaqGS:CARG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 589 70 42
2019-09-30 557 67 41
2019-06-30 526 54 45
2019-03-31 491 55 72
2018-12-31 454 52 65
2018-09-30 419 42 55
2018-06-30 382 39 42
2018-03-31 348 27 11
2017-12-31 317 26 7
2017-09-30 287 18 -22
2017-06-30 257 24 -22
2017-03-31 227 24 -24

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CarGurus's earnings are expected to grow significantly at over 20% yearly.
  • CarGurus's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CARG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from CarGurus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CARG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 1.12 1.12 1.12 1.00
2023-12-31 1.01 1.14 0.87 2.00
2022-12-31 0.73 0.81 0.65 5.00
2021-12-31 0.50 0.66 0.25 8.00
2020-12-31 0.06 0.14 -0.03 2.00
2020-04-03
NasdaqGS:CARG Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.38
2019-09-30 0.37
2019-06-30 0.41
2019-03-31 0.66
2018-12-31 0.60
2018-09-30 0.52
2018-06-30 0.48
2018-03-31 0.15
2017-12-31 0.13
2017-09-30 -0.53
2017-06-30 -0.52
2017-03-31 -0.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if CarGurus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess CarGurus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CarGurus has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CARG Past Performance

  How has CarGurus performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CarGurus's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CarGurus has delivered over 20% year on year earnings growth in the past 5 years.
  • CarGurus's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • CarGurus's 1-year earnings growth is negative, it can't be compared to the US Interactive Media and Services industry average.
Earnings and Revenue History
CarGurus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CarGurus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CARG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 588.92 42.15 444.28 69.46
2019-09-30 556.85 41.43 427.28 65.22
2019-06-30 525.52 44.92 408.17 60.24
2019-03-31 490.78 72.26 381.77 54.74
2018-12-31 454.09 65.17 355.41 47.87
2018-09-30 418.59 55.34 334.25 42.03
2018-06-30 382.46 42.43 309.81 35.06
2018-03-31 348.40 10.87 282.44 27.92
2017-12-31 316.86 7.10 258.85 22.47
2017-09-30 287.03 -22.21 231.96 17.47
2017-06-30 257.18 -22.31 206.67 14.66
2017-03-31 226.56 -24.12 186.11 12.77
2016-12-31 198.14 -25.59 166.91 11.45
2015-12-31 98.59 -17.57 87.68 8.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CarGurus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CarGurus used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
  • CarGurus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CarGurus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CarGurus has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CARG Health

 How is CarGurus's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CarGurus's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CarGurus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CarGurus's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CarGurus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • CarGurus has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CarGurus Company Filings, last reported 3 months ago.

NasdaqGS:CARG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 256.86 0.00 171.61
2019-09-30 237.10 0.00 164.32
2019-06-30 222.39 0.00 147.17
2019-03-31 211.01 0.00 138.44
2018-12-31 194.11 0.00 157.69
2018-09-30 170.43 0.00 147.64
2018-06-30 156.39 0.00 141.76
2018-03-31 134.80 0.00 142.00
2017-12-31 127.03 0.00 137.71
2017-09-30 76.40 0.00 85.64
2017-06-30 73.75 0.00 81.31
2017-03-31 69.14 0.00 78.91
2016-12-31 64.73 0.00 74.25
2015-12-31 57.25 0.00 61.36
  • CarGurus has no debt.
  • CarGurus has not taken on any debt in the past 5 years.
  • CarGurus has no debt, it does not need to be covered by operating cash flow.
  • CarGurus has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess CarGurus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CarGurus has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CARG Dividends

 What is CarGurus's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CarGurus dividends. Estimated to be 0% next year.
If you bought $2,000 of CarGurus shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CarGurus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CarGurus's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CARG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 0.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CARG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 2.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CarGurus has not reported any payouts.
  • Unable to verify if CarGurus's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CarGurus's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CarGurus has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CarGurus's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess CarGurus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CarGurus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CarGurus has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CARG Management

 What is the CEO of CarGurus's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
E. Steinert
COMPENSATION $2,693,214
AGE 55
TENURE AS CEO 14.3 years
CEO Bio

Mr. E. Langley Steinert founded Cargurus Inc. in 2006 and has been its Chief Executive Officer since 2006 and served as its President since June 2015 until 2019. Mr. Steinert is a Venture Partner of OneLiberty Ventures. He served as Vice President of Marketing & Business Development of Viaweb Inc. Prior to Viaweb, Mr. Steinert served as Vice President and General Manager of Papyrus. He has held various product management roles at Lotus Development Corp. and JetForm Corp. Mr. Steinert Co-founded TripAdvisor, Inc. in 2000 and served as its Chairman from February 2000 to February 2006. He has been Chairman of Cargurus Inc. since September 2017 and has been its Director since 2006. He served as a Director of Contact Networks Corporation since March 21, 2005. Mr. Steinert has an MBA from Amos Tuck School of Business Administration at Dartmouth College and BA from Georgetown University.

CEO Compensation
  • E.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • E.'s remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CarGurus management team in years:

1.3
Average Tenure
49.5
Average Age
  • The average tenure for the CarGurus management team is less than 2 years, this suggests a new team.
Management Team

E. Steinert

TITLE
Founder
COMPENSATION
$3M
AGE
55
TENURE
14.3 yrs

Sam Zales

TITLE
COO & President
COMPENSATION
$2M
AGE
55
TENURE
1.2 yrs

Jason Trevisan

TITLE
CFO, President of International & Treasurer
COMPENSATION
$2M
AGE
44
TENURE
4.6 yrs

Kathleen Patton

TITLE
General Counsel & Secretary
COMPENSATION
$1M
AGE
52
TENURE
2.7 yrs

Kyle Lomeli

TITLE
Chief Technology Officer
AGE
40
TENURE
1.3 yrs

Rodney Nelson

TITLE
Director of Investor Relations

Sarah Welch

TITLE
Chief Marketing Officer
AGE
47
TENURE
1.3 yrs

Carol Chen

TITLE
Vice President of Sales Operations
TENURE
0.3 yrs

Kristen Kenny

TITLE
VP of People & Talent
TENURE
4.2 yrs

Andrea Eldridge

TITLE
Chief People Officer
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the CarGurus board of directors in years:

2.6
Average Tenure
55
Average Age
  • The average tenure for the CarGurus board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ian Smith

TITLE
Non-Employee Director
COMPENSATION
$197K
AGE
49
TENURE
12.8 yrs

E. Steinert

TITLE
Founder
COMPENSATION
$3M
AGE
55
TENURE
2.6 yrs

Lori Hickok

TITLE
Independent Director
COMPENSATION
$195K
AGE
55
TENURE
1.7 yrs

Steve Kaufer

TITLE
Non-Employee Director
COMPENSATION
$194K
AGE
56
TENURE
12.8 yrs

Tas Parafestas

TITLE
Non-Employee Director
COMPENSATION
$193K
AGE
64
TENURE
14.1 yrs

Greg Schwartz

TITLE
Independent Director
COMPENSATION
$202K
AGE
46
TENURE
2.1 yrs

Steve Conine

TITLE
Independent Director
COMPENSATION
$189K
AGE
46
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Dec 19 Sell E. Steinert Individual 10. Dec 19 11. Dec 19 -72,032 $38.02 $-2,668,932
06. Dec 19 Sell E. Steinert Individual 04. Dec 19 05. Dec 19 -72,032 $39.27 $-2,800,244
26. Nov 19 Sell Ian Smith Individual 22. Nov 19 22. Nov 19 -1,238 $39.85 $-49,334
22. Nov 19 Sell Ian Smith Individual 20. Nov 19 21. Nov 19 -89,030 $40.26 $-3,582,832
20. Nov 19 Sell RWS 2006 Family Trust Company 18. Nov 19 18. Nov 19 -12,743 $39.58 $-504,368
18. Nov 19 Sell RWS 2006 Family Trust Company 14. Nov 19 14. Nov 19 -5,000 $38.22 $-191,100
14. Nov 19 Sell RWS 2006 Family Trust Company 12. Nov 19 12. Nov 19 -5,000 $38.24 $-191,200
12. Nov 19 Sell RWS 2006 Family Trust Company 08. Nov 19 08. Nov 19 -5,000 $37.84 $-189,200
12. Aug 19 Sell Ian Smith Individual 09. Aug 19 09. Aug 19 -13,148 $33.32 $-430,315
17. Jul 19 Sell RWS 2006 Family Trust Company 15. Jul 19 15. Jul 19 -4,100 $37.71 $-154,611
27. Jun 19 Sell RWS 2006 Family Trust Company 25. Jun 19 25. Jun 19 -13,168 $37.81 $-497,882
25. Jun 19 Sell RWS 2006 Family Trust Company 21. Jun 19 21. Jun 19 -23,744 $38.93 $-924,354
18. Jun 19 Sell Greg Schwartz Individual 14. Jun 19 14. Jun 19 -4,000 $35.50 $-141,982
17. May 19 Sell RWS 2006 Family Trust Company 15. May 19 15. May 19 -8,059 $37.83 $-304,872
15. May 19 Sell RWS 2006 Family Trust Company 13. May 19 13. May 19 -4,516 $38.60 $-174,318
13. May 19 Sell RWS 2006 Family Trust Company 09. May 19 09. May 19 -8,137 $40.28 $-327,758
09. May 19 Sell RWS 2006 Family Trust Company 08. May 19 08. May 19 -5,208 $40.19 $-209,310
08. May 19 Sell RWS 2006 Family Trust Company 06. May 19 06. May 19 -4,957 $40.49 $-200,709
06. May 19 Sell RWS 2006 Family Trust Company 02. May 19 02. May 19 -3,776 $39.67 $-149,794
02. May 19 Sell RWS 2006 Family Trust Company 01. May 19 01. May 19 -20,647 $40.54 $-837,029
30. Apr 19 Sell RWS 2006 Family Trust Company 26. Apr 19 26. Apr 19 -10,894 $39.09 $-425,846
26. Apr 19 Sell RWS 2006 Family Trust Company 25. Apr 19 25. Apr 19 -16,035 $38.01 $-609,490
17. Apr 19 Sell RWS 2006 Family Trust Company 15. Apr 19 15. Apr 19 -8,971 $40.78 $-365,837
15. Apr 19 Sell RWS 2006 Family Trust Company 11. Apr 19 11. Apr 19 -5,000 $39.98 $-199,900
11. Apr 19 Sell RWS 2006 Family Trust Company 09. Apr 19 09. Apr 19 -5,000 $39.07 $-195,350
09. Apr 19 Sell RWS 2006 Family Trust Company 05. Apr 19 05. Apr 19 -10,000 $41.37 $-413,700
X
Management checks
We assess CarGurus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CarGurus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CARG News

Simply Wall St News

CarGurus, Inc. (NASDAQ:CARG) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in CarGurus, Inc. … Over the last year we saw more insider selling of CarGurus shares, than buying. … NasdaqGS:CARG Recent Insider Trading, August 15th 2019 CarGurus Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at CarGurus.

Simply Wall St -

Did You Manage To Avoid CarGurus's (NASDAQ:CARG) 19% Share Price Drop?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Even though the CarGurus share price is down over the year, its EPS actually improved. … Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

Simply Wall St -

Despite Its High P/E Ratio, Is CarGurus, Inc. (NASDAQ:CARG) Still Undervalued?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for CarGurus: P/E of 53.74 = $35.37 ÷ $0.66 (Based on the year to March 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that buyers have to pay a higher price for each $1 the company has earned over the last year. … Does CarGurus Have A Relatively High Or Low P/E For Its Industry?

Simply Wall St -

Why CarGurus, Inc. (NASDAQ:CARG) Could Be Your Next Investment

Flawless balance sheet with outstanding track record Investors in search for stocks with room to flourish should look no further than CARG, with its expected earinngs growth of 35%, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will rise by 76% over the same time period. … NasdaqGS:CARG Past and Future Earnings, July 10th 2019 CARG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … NasdaqGS:CARG Historical Debt, July 10th 2019 Next Steps: For CarGurus, I've compiled three pertinent aspects you should further research: Valuation: What is CARG worth today?

Simply Wall St -

Buy CarGurus, Inc. (NASDAQ:CARG) When Everyone Panics

Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Next Steps: CarGurus makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

Does The Hype Around CarGurus, Inc.'s (NASDAQ:CARG) Growth Justify Its June Share Price?

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” CarGurus is available at price-to-earnings ratio of 58.87x, showing us it is overvalued compared to the US market average ratio of 18x , and overvalued based on current earnings compared to the Interactive Media and Services industry average of 27.77x. … However, seeing as CarGurus is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … This means that, when we account for CarGurus's growth, the stock can be viewed as a bit overvalued , based on the fundamentals.

Simply Wall St -

Should You Care About CarGurus, Inc.’s (NASDAQ:CARG) Investment Potential?

Finally, we'll look at how its current liabilities affect its ROCE. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CarGurus: 0.091 = US$24m ÷ (US$332m - US$65m) (Based on the trailing twelve months to March 2019.) So, CarGurus has an ROCE of 9.1%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Estimating The Intrinsic Value Of CarGurus, Inc. (NASDAQ:CARG)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $37.92 $64.73 $96.83 $141.80 $204.97 $258.95 $308.81 $352.97 $391.19 $424.04 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x3 Analyst x3 Est @ 26.34% Est @ 19.26% Est @ 14.3% Est @ 10.83% Est @ 8.4% Present Value ($, Millions) Discounted @ 8.81% $34.85 $54.68 $75.16 $101.16 $134.38 $156.03 $171.01 $179.63 $182.96 $182.27 Present Value of 10-year Cash Flow (PVCF)= $1.27b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Simply Wall St -

If You Had Bought CarGurus (NASDAQ:CARG) Stock A Year Ago, You Could Pocket A 24% Gain Today

(NASDAQ:CARG) share price is up 24% in the last year, clearly besting than the market return of around 8.5% (not including dividends). … We'll need to follow CarGurus for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … During the last year CarGurus grew its earnings per share (EPS) by 371%.

Simply Wall St -

Are Insiders Selling CarGurus, Inc. (NASDAQ:CARG) Stock?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … CarGurus Insider Transactions Over The Last Year. … That means that even when the share price was below the current price of US$36.36, an insider wanted to cash in some shares.

Simply Wall St -

CARG Company Info

Description

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. 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, the United Kingdom, Germany, Italy, and Spain; and the PistonHeads online marketplace as an independent brand in the United Kingdom. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Details
Name: CarGurus, Inc.
CARG
Exchange: NasdaqGS
Founded: 2005
$1,849,549,361
112,298,079
Website: http://www.cargurus.com
Address: CarGurus, Inc.
2 Canal Park,
4th Floor,
Cambridge,
Massachusetts, 02141,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CARG Class A common stock Nasdaq Global Select US USD 12. Oct 2017
DB 0C6 Class A common stock Deutsche Boerse AG DE EUR 12. Oct 2017
BRSE 0C6 Class A common stock Berne Stock Exchange CH CHF 12. Oct 2017
Number of employees
Current staff
Staff numbers
921
CarGurus employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 06:40
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/14
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.