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%

The company is Net-Debt Free

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

The company has declared Positive results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 318.73 MM
ROCE(HY) Highest at 51.41%
NET SALES(Q) Highest at USD 250.97 MM

With ROE of 50.29%, it has a expensive valuation with a 8.91 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 -11.61%, its profits have risen by 22.1% ; 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.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 15.36% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.61% returns

Real-Time Research Report

Verdict Report

How much should you hold?

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cargurus, Inc.

-11.61%

0.70

40.02%

S&P 500

15.36%

1.17

13.09%

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

8.91

EV to EBIT

13.74

EV to EBITDA

11.52

EV to Capital Employed

16.32

EV to Sales

3.36

PEG Ratio

0.55

Dividend Yield

ROCE (Latest)

118.73%

ROE (Latest)

50.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 318.73 MM

ROCE(HY)

Highest at 51.41%

NET SALES(Q)

Highest at USD 250.97 MM

RAW MATERIAL COST(Y)

Fallen by 0.73% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 22.99 times

EPS(Q)

Highest at USD 0.54

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 194.19 MM

DEBT-EQUITY RATIO (HY)

Highest at 23.83 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 205.31 times

Here's what is working for Cargurus, Inc.

Operating Cash Flow

Highest at USD 318.73 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 250.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

EPS

Highest at USD 0.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 22.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.73% (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

Depreciation

Highest at USD 12.93 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cargurus, Inc.

Cash and Eqv

Lowest at USD 194.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 23.83 %

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

Inventory Turnover Ratio

Lowest at 205.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio