Cars.com Inc.

Technology
EDP Services
www.cars.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.25B
PE 32
Debt $464.98M
Cash $49.57M
EV $1.66B
FCF $165.07M

Earnings

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Sales & Net Margins

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Earnings	$39.23M
EBIT	$56.69M
ROE	8%
ROA	5%
FCF	$165.07M
Equity	$502.43M
Growth Stability	-304%
PE	31.76
PEG	0.27
PB	2.48
P/FCF	7.55
P/S	1.73
Price/Cash	0.04
Debt/Equity	0.93
Debt/FCF	2.82
Net Margins	6%
Op. Margins	8%
Earnings CAGR	-13%
Sales Growth YoY	3%
Sales Growth QoQ	0%
Sales CAGR	1%
FCF CAGR	-4%
Equity CAGR	-22%
Earnings Stability	0.03
Earnings Growth YoY	317%
Earnings Growth QoQ	64%

Earnings CAGR 5Y	116%
Sales CAGR 5Y	5%
FCF CAGR 5Y	11%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	19%
Equity CAGR 3Y	14%
Market Cap	$1.25B
Revenue	$718.33M
Assets	$1.12B
Total Debt	$464.98M
Cash	$49.57M
Shares Outstanding	65.02M
EV	1.66B
Earnings Score	6%
Moat Score	76%
Safety Score	59%
Final Score	47%
Working Capital	88.51M
Current Ratio	1.79
Shares Growth 3y	-2%
Equity Growth QoQ	1%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Cars.com Inc is an online destination for buying and selling new and used vehicles. The company brands include Dealer Inspire, DealerRater, FUEL, Auto.com, PickupTrucks.com, CreditIQ, and NewCars.com., websites directed towards different consumer segments.

SEC Filings

Direct access to Cars.com Inc. (CARS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cars.com Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cars.com Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -13%

Stability 3%

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Cars.com Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cars.com Inc..

Years

Calculation mode

= $1.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$165M	$159M	$153M	$147M	$142M	$136M	$131M	$126M	$122M	$117M	$113M	$1.1B
DCF		$144M	$126M	$111M	$97M	$85M	$74M	$65M	$57M	$50M	$43M	$434M
Value	$1.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	26%	28%	36%	6%	-73%	-149%	1%	3%	17%	6%
ROA	-	7%	5%	3%	-22%	-82%	5%	6%	5%	5%
ROE	-	7%	13%	2%	-39%	-240%	2%	4%	24%	8%

Bad Net Margins (5.73%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	3.95	4.84	8.47	4.97	4.09	4.55	3.79	2.82
Debt over Equity	-	-	0.36	0.44	0.6	1.78	1.33	1.29	1.04	0.93
Growth Stability	-	-	-	21%	-304%	-	-	-	-	-304%

Neutral Debt/FCF ratio (2.82)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.93)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-304%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	6%	-1%	6%	-8%	-10%	14%	5%	5%	5%
Earnings YoY growth	-	12%	27%	-83%	-1K%	83%	-101%	123%	588%	116%
Equity YoY growth	-	5%	-31%	-3%	-30%	-70%	8%	5%	28%	3%
FCF YoY growth	-	5%	-19%	-3%	-46%	52%	-3%	-8%	24%	11%