Why is Cargurus, Inc. ?
1
High Management Efficiency with a high ROE of 19.89%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Net Sales has grown by an annual rate of 10.38% and Operating profit at 33.06%
4
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 272.94 MM
- RAW MATERIAL COST(Y) Fallen by -3.88% (YoY)
- NET PROFIT(9M) Higher at USD 132.81 MM
5
With ROE of 42.96%, it has a very expensive valuation with a 7.86 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0.53%, its profits have risen by 448.5% ; the PEG ratio of the company is 0
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you buy?
- Overall Portfolio exposure to Cargurus, Inc. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cargurus, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Cargurus, Inc.
-5.78%
0.97
39.92%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
10.38%
EBIT Growth (5y)
33.06%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.76
Tax Ratio
11.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
64.36%
ROE (avg)
19.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
7.86
EV to EBIT
17.73
EV to EBITDA
14.19
EV to Capital Employed
12.68
EV to Sales
3.31
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
71.49%
ROE (Latest)
42.96%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 272.94 MM
RAW MATERIAL COST(Y)
Fallen by -3.88% (YoY
NET PROFIT(9M)
Higher at USD 132.81 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 22.75 times
NET SALES(Q)
Highest at USD 234.03 MM
PRE-TAX PROFIT(Q)
Highest at USD 57.23 MM
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Cargurus, Inc.
Net Profit
At USD 132.81 MM has Grown at 135.84%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 272.94 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 234.03 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 57.23 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Debtors Turnover Ratio
Highest at 22.75 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at USD 132.81 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (USD MM)
Raw Material Cost
Fallen by -3.88% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Cargurus, Inc.
Non Operating Income
Highest at USD 0.09 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






