ScoreWhy 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 -33.14%, its profits have fallen by -80.4%
5
Below par performance in long term as well as near term
- Along with generating -33.14% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cars.com, 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 Cars.com, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cars.com, Inc.
-35.07%
-0.70
49.78%
S&P 500
17.78%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.66%
EBIT Growth (5y)
32.23%
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
100.00%
ROCE (avg)
5.89%
ROE (avg)
7.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.34
EV to EBIT
20.36
EV to EBITDA
6.86
EV to Capital Employed
1.18
EV to Sales
1.50
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
5.81%
ROE (Latest)
8.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET PROFIT(HY)
At USD 14.67 MM has Grown at 154.74%
RAW MATERIAL COST(Y)
Fallen by -9.1% (YoY
NET SALES(Q)
Highest at USD 181.57 MM
-8What is not working for the Company
PRE-TAX PROFIT(Q)
At USD 10.7 MM has Fallen at -56.39%
NET PROFIT(Q)
At USD 7.66 MM has Fallen at -59.09%
ROCE(HY)
Lowest at 6.11%
Here's what is working for Cars.com, Inc.
Net Sales
Highest at USD 181.57 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by -9.1% (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.
Pre-Tax Profit
At USD 10.7 MM has Fallen at -56.39%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 7.66 MM has Fallen at -59.09%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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