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.
-18.03%
-0.70
49.78%
S&P 500
15.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.73%
EBIT Growth (5y)
18.85%
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
23
Industry P/E
Price to Book Value
0.99
EV to EBIT
14.34
EV to EBITDA
5.68
EV to Capital Employed
0.99
EV to Sales
1.19
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.93%
ROE (Latest)
4.24%
TechnicalsTechnical 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 Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 151.58 MM
INTEREST COVERAGE RATIO(Q)
Highest at 611.32
RAW MATERIAL COST(Y)
Fallen by -11.03% (YoY
OPERATING PROFIT(Q)
Highest at USD 45.22 MM
OPERATING PROFIT MARGIN(Q)
Highest at 25.13 %
PRE-TAX PROFIT(Q)
Highest at USD 19.53 MM
NET PROFIT(Q)
Highest at USD 14.26 MM
EPS(Q)
Highest at USD 0.25
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.26 times
DEBT-EQUITY RATIO
(HY)
Highest at 93.29 %
Here's what is working for Cars.com, Inc.
Interest Coverage Ratio
Highest at 611.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At USD 14.26 MM has Grown at 103.5%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 151.58 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 45.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 25.13 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 19.53 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 19.53 MM has Grown at 95.89%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 14.26 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.25
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -11.03% (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.
Debtors Turnover Ratio
Lowest at 5.26 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Debt-Equity Ratio
Highest at 93.29 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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