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Cars.com, Inc.

  • Market Cap: Small Cap
  • Industry: Computers - Software & Consulting
  • ISIN: US14575E1055
USD
12.12
-0.25 (-2.02%)

Dec 04

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Upstart Holdings, Inc.
Cargurus, Inc.
Shutterstock, Inc.
Yelp, Inc.
Coursera, Inc.
Taboola.com Ltd.
Cars.com, Inc.
Getty Images Holdings, Inc.
Ziff Davis, Inc.
Perion Network Ltd.
MakeMyTrip Ltd.
Why is Cars.com, Inc. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.95 times
  • Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.95 times
  • The company has been able to generate a Return on Capital Employed (avg) of 5.89% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Operating profit has grown by an annual rate 37.25% of over the last 5 years
3
Flat results in Jun 25
  • OPERATING CASH FLOW(Y) Lowest at USD 139.5 MM
  • DEBTORS TURNOVER RATIO(HY) Lowest at 5.49 times
  • NET SALES(Q) Lowest at USD 178.74 MM
4
With ROCE of 5.17%, it has a expensive valuation with a 1.18 Enterprise value to Capital Employed
  • The stock is trading at a fair value compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -37.96%, its profits have fallen by -80.4%
5
Below par performance in long term as well as near term
  • Along with generating -37.96% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Cars.com, Inc. should be less than 10%
  2. 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 Cars.com, Inc. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Cars.com, Inc.
-39.7%
-0.76
49.78%
S&P 500
13.22%
0.64
20.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
5.30%
EBIT Growth (5y)
37.25%
EBIT to Interest (avg)
1.60
Debt to EBITDA (avg)
2.95
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
0.74
Tax Ratio
24.11%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
99.00%
ROCE (avg)
5.89%
ROE (avg)
7.06%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
1.33
EV to EBIT
22.81
EV to EBITDA
6.99
EV to Capital Employed
1.18
EV to Sales
1.50
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.17%
ROE (Latest)
4.30%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

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

13What is working for the Company
PRE-TAX PROFIT(Q)

At USD 9.97 MM has Grown at 153.38%

NET PROFIT(Q)

At USD 7.01 MM has Grown at 154.08%

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

-4What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at USD 139.5 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.49 times

NET SALES(Q)

Lowest at USD 178.74 MM

Here's what is working for Cars.com, Inc.
Pre-Tax Profit
At USD 9.97 MM has Grown at 153.38%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit
At USD 7.01 MM has Grown at 154.08%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (USD MM)

Raw Material Cost
Fallen by -2.26% (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 Cars.com, Inc.
Operating Cash Flow
Lowest at USD 139.5 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales
Lowest at USD 178.74 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (USD MM)

Debtors Turnover Ratio
Lowest at 5.49 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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