Cargurus, Inc. (CARG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Cargurus, Inc. ?

High Management Efficiency with a high ROE of 19.89%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 11.23% and Operating profit at 17.85%

With a growth in Net Profit of 20.17%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 295.29 MM
ROCE(HY) Highest at 34.9%
NET SALES(Q) Highest at USD 241.09 MM

With ROE of 36.88%, it has a attractive valuation with a 8.15 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 8.41%, its profits have risen by 110.1% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

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.

6.95%

0.78

37.87%

S&P 500

17.78%

0.90

19.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.23%

EBIT Growth (5y)

17.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.88

Tax Ratio

11.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

64.36%

ROE (avg)

19.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.15

EV to EBIT

17.53

EV to EBITDA

14.03

EV to Capital Employed

15.74

EV to Sales

3.62

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

89.78%

ROE (Latest)

36.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 295.29 MM

ROCE(HY)

Highest at 34.9%

NET SALES(Q)

Highest at USD 241.09 MM

RAW MATERIAL COST(Y)

Fallen by 1.06% (YoY

OPERATING PROFIT(Q)

Highest at USD 80.85 MM

PRE-TAX PROFIT(Q)

Highest at USD 70.27 MM

NET PROFIT(Q)

Highest at USD 53.74 MM

EPS(Q)

Highest at USD 0.51

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 369.37 MM

DEBT-EQUITY RATIO (HY)

Highest at 0.08 %

Here's what is working for Cargurus, Inc.

Operating Cash Flow

Highest at USD 295.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 241.09 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 80.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 70.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 53.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by 1.06% (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.

Cash and Eqv

Lowest at USD 369.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0.08 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio