GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG
CarGurus Inc (NAS:CARG)
Not Rated
Modestly Undervalued[5]$ 36.15
Interactive Media - Internet Content & Information
Market Cap: $ 4,254 Mil
CarGurus Inc is an online automotive marketplace connecting buyers and sellers of new and used cars. It operates online marketplaces in Canada, the United Kingdom, and Germany.
Valuation Rank
Score: 0 /10CurrentIndustry MedianHistorical Median
PE Ratio41.0823.2368.43
Forward P/E27.8426.15N/A
PB Ratio7.213.2715.65
PS Ratio5.593.756.9
P/FCF24.7423.2174.02
Shiller P/EN/A34.03N/A
PEG RatioN/A1.12N/A
Valuation Analysis
% of Price
NCAV1.795
Tangible Book2.98
Graham Number7.5821
Price36.15
Dividend & Ownership
Dividend Yield(ttm) %N/A
Dividend Yield(forward) %N/A
PayoutN/A
Dividend Growth(5y) %N/A
Yield on Cost(5y) %N/A
Continuous Div. sinceN/A
Insider Ownership %5.12
Institution Ownership %47.9
Financial Strength
Score: 6 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt4.367.584.26
Equity-to-Asset0.720.660.71
Interest CoverageN/A59.39526.69
Piotroski F-Score656
Profitability Rank
Score: 7 /10CurrentIndustry MedianHistorical Median
Operating Margin %18.053.574.97
Net Margin %13.352.975.67
ROE %21.614.1013.05
ROA %15.511.4411.13
ROC (Joel Greenblatt) %130.3817.8895.07
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)N/A37.331.7
EBITDA Growth (%)N/AN/A84
Oprt. Income Growth (%)N/AN/A70.5
EPS w/o NRI Growth (%)N/AN/A51.7
Free Cash Flow Growth (%)N/A81.336
Book Value Growth (%)N/AN/A67.7
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue147152171218223
Net Income3325202829
EPS0.290.220.190.230.24
Revenue (YoY) %-1.99-4.178.67129.8451.16
Net Income (YoY) %213.5991.0553.99293.38-10.33
EPS (YoY) %222.2283.3372.73283.33-17.24
Warning Signs
SEVEREBeneish M-Score: Possible manipulator
SEVERERevenue per Share: Declined
SEVEREAsset Growth: faster than revenue growth
Good Signs
GOODAltman Z-Score: Strong
Insider Trades
InsiderPositionDateTradesCur. Shares
Steinert LangleyExecutive Chair12/02/21-93294521213
Eldridge Andrea LeeChief People Of12/02/21-54339639
Zales SamuelCOO and Preside11/15/21-10000353707
Steinert LangleyExecutive Chair11/12/21-46641614507
Steinert LangleyExecutive Chair11/11/21-139941661148
Steinert LangleyExecutive Chair11/08/21-93294801089
Steinert LangleyExecutive Chair11/04/21-93294894383
Gellot Yann BrunoVP, Finance & P11/03/21-169418470
Steinert LangleyExecutive Chair11/02/21-62196987677
Steinert LangleyExecutive Chair10/20/21-11118578204
As of 12-06-2021
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-2.67-1.21
1M2.32-2.43
3M20.820.40
6M38.618.98
YTD13.9322.46
1Y43.8525.39
3Y-1.9319.60
5Y--17.70
10Y--15.98
55.91
19.99
15.93
3M
1.4M
2011201220132014201520162017201820192020CurrentPerformance
------------32.655.9142.838.0639.76Highest Stock Price
--------------29.428.6815.9322.63Lowest Stock Price
------------31813725394535984254Market Cap
--------106.7106.760.6113.4113.4113.9120.4Shares Outstanding-Diluted
--------N/AN/A249.8359.1895.0846.6641.08PE Ratio
------------25.0519.1915.369.637.21PB Ratio
------------5.748.426.786.555.59PS Ratio
------------159.6126.491.1930.9623.59EV-to-EBITDA
--------201520162017201820192020TTMPer Share Data
--------0.921.865.234.015.194.846.46Revenue per Share
---------0.17-0.250.120.570.370.680.88Earnings per Share
--------0.050.120.30.390.491.311.46Free Cash Flow per Share
----------------------Dividends per Share
---------0.15-0.641.21.762.122.942.9Tangible Book per Share
----------------------Median PS Value
------------1.84.754.26.717.58Graham Number
--------201520162017201820192020TTMIncome Statement
--------98.6198.1316.9454.1588.9551.5763.6Revenue
--------94.4188.6299.3429.3552.6508.7617.7Gross Profit
--------95.795.294.494.593.892.380.9Gross Margin %
--------96.9180284406.1518.3411479.9Total Operating Expense
---------2.58.615.323.234.397.8137.8Operating Income
---------2.64.34.85.15.817.718.1Operating Margin %
---------1.66.513.265.242.177.6102Net Income
---------1.73.34.214.47.214.113.4Net Margin %
---------2.58.615.323.234.397.8137.8EBIT
---------1.410.619.128.242.1109.1169.9EBITDA
---------30.7-427.440.618.724.621.6ROE %
---------2.17.39.529.312.717.315.5ROA %
--------201520162017201820192020Sep21Balance Sheet
--------61.429.587.734.959.9190.3231.1Cash & Equivalents
--------5.76.712.613.622.118.285.2Total Receivables
--------77.8100.3176.6268.3393.6502.3819.9Total Assets
----------------8.811.112.7Short-Term Debt & CLO
----------------60.858.861Long-Term Debt & CLO
--------20.535.649.674.2136.8128.7230.7Total Liabilities
--------57.264.7127194.1256.9373.6589.3Total Stockholders Equity
--------57.264.7127194.1256.9373.6589.3Total Equity
--------201520162017201820192020TTMCashflow Statement
--------12.92025.751.770.1156.7183Cash Flow from Operations
---------7.6-52-12.6-80.3-22.3-16.9-165.1Cash Flow from Investing
----------------------Repurchase of Stock
-----------------0-0-14.3Net Issuance of Debt
--------500.744.8-23.4-14.7-10.1-27.4Cash Flow from Financing
--------55.3-31.358-5233.2130.2-9.6Net Change in Cash
---------7.6-7.2-7.4-7.5-14.2-7.5-10.8Capital Expenditure
--------5.312.818.344.255.9149.2172.2Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:FVRRFiverr International Ltd514,557At Loss16.11-19.57-6.74-16.05
NAS:CARGCarGurus Inc674,25441.085.5913.3515.5121.61
NYSE:SSTKShutterstock Inc683,80338.395.1813.4813.2423.00
NYSE:YELPYelp Inc842,50873.092.653.793.354.60
NAS:CDLXCardlytics Inc422,075At Loss7.81-50.59-14.39-25.15
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (6/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 4.36

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.72

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.13

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 6

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 12.22% vs ROIC : 29.44%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Profitability[3] (Annual data, as of Dec. 2020) : Good (7/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $223 Mil vs Net Income : $29 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $231 Mil vs Long-Term Debt* : $61 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 17.98%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $0.24

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.00

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.43

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $36.15)


PE Ratio without NRI : 35.69

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 6.26

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 4.86

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 21.50

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 24.98

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Beneish M-Score : Possible manipulator

Beneish M-Score 0.43 higher than -1.78, which implies that the company might have manipulated its financial results.

Revenue per Share : Declined

CarGurus Inc revenue per share has been in decline over the past 3 years.

Asset Growth : faster than revenue growth

If a company builds asset at 78.4% a year, faster than its revenue growth rate of 37.3% over the past 5 years, it means that the company may be getting less efficent.

Good Signs

Altman Z-Score : Strong

Altman Z-score of 13.41 is strong.

Interest Coverage : Comfortable

Ben Graham prefers companies interest coverage is at least 5. CarGurus Inc has enough cash to cover all of its debt. Its financial situation is stable.

Medium Warning Signs

Price : Close to 2-year high

CarGurus Inc stock Price is close to 2-year high

Insider Sell : Insider Selling

There were 32 insider selling transactions and no insider buying over the past 3 months. 1,406,872 shares were sold.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:YELPYelp Inc8/103.040.730.23318.6465.74-2.9711.996.41
NAS:DOYUDouYu International Holdings Ltd7/1084.680.780.01N/A22.45-1.997.40-45.98
NAS:MOMOHello Group Inc7/101.980.660.3330.3752.41-2.378.4215.78
NAS:CARGCarGurus Inc6/104.360.720.13N/A613.410.4312.2229.44
NYSE:FVRRFiverr International Ltd5/101.110.381.110.0045.24-2.377.17-9.05
NAS:CDLXCardlytics Inc4/101.220.560.280.0031.706.2815.06-14.46
NYSE:DAOYoudao Inc4/100.93-0.33-1.190.0031.35-2.237.07-60.88
OTCPK:ULNVPorter Holding International Inc3/100.20-3.45-0.14N/A380.314.48-0.06-136.12

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NAS:MOMOHello Group Inc8/1015.6113.8414.399.006.89567.7416.105.50-2.00
NAS:CARGCarGurus Inc7/1018.0513.3521.6115.5124.74130.38-2.5045.0078.30
NYSE:YELPYelp Inc4/102.673.794.603.3514.5810.007.00-31.200.00
NAS:CDLXCardlytics Inc2/10-33.44-50.59-25.15-14.390.00-404.420.90-52.30-16.20
NAS:DOYUDouYu International Holdings Ltd1/10-7.45-5.79-7.69-5.9645.40-709.5765.900.000.00
NYSE:FVRRFiverr International Ltd1/10-12.87-19.57-16.05-6.74141.69-198.0542.4031.5018.00
OTCPK:ULNVPorter Holding International Inc1/10-1998.73-1234.180.00-79.600.00-309.730.000.000.00
NYSE:DAOYoudao Inc1/10-28.22-27.820.00-57.230.00-827.8183.00-128.30-119.70

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NAS:CDLXCardlytics IncAt Loss3.007.810.000.000.000.000.00-5.480.00
NAS:DOYUDouYu International Holdings LtdAt Loss0.720.520.000.000.000.000.0054.950.00
NYSE:FVRRFiverr International LtdAt Loss13.1216.110.000.000.000.000.00-0.780.00
OTCPK:ULNVPorter Holding International IncAt Loss0.001250.000.000.000.000.000.00-0.250.00
NYSE:DAOYoudao IncAt Loss0.001.670.000.000.000.000.00-15.360.00
NAS:MOMOHello Group Inc6.400.810.920.280.000.000.260.5835.7142.14
NAS:CARGCarGurus Inc41.087.215.590.000.000.000.004.773.440.00
NYSE:YELPYelp Inc73.093.232.651.330.000.630.003.521.237.39
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Per Share Data



Per Share Data

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
0.92
1.86
5.23
4.01
5.19
4.84
6.46
Revenue per Share
-0.01
0.1
0.31
0.25
0.37
0.96
1.44
EBITDA per Share
-0.02
0.08
0.25
0.21
0.3
0.86
1.17
EBIT per Share
-0.17
-0.25
0.12
0.57
0.37
0.68
0.88
Earnings per Share (Diluted)
-0.17
-0.24
0.12
0.57
0.37
0.68
0.88
EPS without NRI
--
--
--
--
--
--
0.89
Owner Earnings per Share (TTM)
0.05
0.12
0.3
0.39
0.49
1.31
1.46
Free Cash Flow per Share
0.12
0.19
0.42
0.46
0.62
1.38
1.55
Operating Cash Flow per Share
0.58
0.7
1.3
1.43
1.53
2.56
2.73
Cash per Share
-0.15
-0.64
1.2
1.76
2.29
3.3
5.02
Book Value per Share
-0.15
-0.64
1.2
1.76
2.12
2.94
2.9
Tangible Book per Share
--
--
--
--
0.62
0.62
0.63
Total Debt per Share
--
--
29.98
33.73
35.18
31.73
36.15
Month End Stock Price

Ratios

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
-30.68
-41.96
7.41
40.59
18.69
24.6
21.61
ROE %
--
--
0.3
2.12
1.22
2.55
3
ROE % Adjusted to Book Value
-2.1
7.3
9.53
29.3
12.73
17.31
15.51
ROA %
-30.68
-41.96
7.41
40.59
19.52
27.15
33.75
Return-on-Tangible-Equity
-2.1
7.3
9.53
29.3
13.11
18.54
20.91
Return-on-Tangible-Asset
-35.37
86.02
104
114
61.18
111
130
ROC (Joel Greenblatt) %
-4.12
12.92
14.91
13.71
13.08
25.87
23.96
ROCE %
-15.33
41.94
57.96
101
25.4
37.92
29.44
ROIC %
--
--
--
8.69
7.86
12.7
12.22
WACC %
--
--
--
--
--
--
-- Effective Interest Rate on Debt %
95.71
95.17
94.44
94.54
93.84
92.26
80.9
Gross Margin %
-2.56
4.33
4.82
5.11
5.83
17.73
18.05
Operating Margin %
-1.66
3.28
4.17
14.35
7.16
14.06
13.35
Net Margin %
5.38
6.45
5.78
9.74
9.49
27.06
22.55
FCF Margin %
--
--
--
--
0.27
0.19
0.13
Debt-to-Equity
0.74
0.65
0.72
0.72
0.65
0.74
0.72
Equity-to-Asset
--
--
--
--
0.18
0.14
0.09
Debt-to-Asset
0.26
0.36
0.28
0.28
0.35
0.26
0.28
Liabilities-to-Assets
121
212
216
193
167
114
93.98
Gross-Profit-to-Asset %
1.27
2.23
2.29
2.04
1.78
1.23
1.16
Asset Turnover
21.21
11.4
11.08
10.53
11.07
13.36
22.75
Days Sales Outstanding
903
513
418
428
357
249
88.04
Days Payable
--
--
--
--
--
--
16
Days Inventory
-882
-501
-407
-418
-346
-236
-49.29
Cash Conversion Cycle
0.04
0.05
0.06
0.05
0.06
0.08
0.19
COGS-to-Revenue
--
--
--
--
--
--
0.01
Inventory-to-Revenue
0.08
0.04
0.02
0.02
0.02
0.01
0.01
Capex-to-Revenue
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Financial Satement



Income Statement

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
98.59
198
317
454
589
551
764
Revenue
4.23
9.58
17.61
24.81
36.3
42.71
146
Cost of Goods Sold
94.35
189
299
429
553
509
618
Gross Profit
95.71
95.17
94.44
94.54
93.84
92.26
80.9
Gross Margin %
87.68
167
259
355
444
319
353
Selling, General, & Admin. Expense
8.24
11.45
22.47
47.87
69.46
85.73
99.33
Research & Development
0.97
1.63
2.66
2.8
4.55
6.12
27.51
Other Operating Expense
96.88
180
284
406
518
411
480
Total Operating Expense
-2.53
8.57
15.27
23.19
34.32
97.76
138
Operating Income
-2.56
4.33
4.82
5.11
5.83
17.73
18.05
Operating Margin %
--
0.42
0.87
2.28
2.98
1.08
0.02
  Interest Income
-0.01
-0.03
-0.03
--
--
--
--   Interest Expense
-0.01
0.42
0.87
2.28
2.98
1.08
0.02
Net Interest Income
--
-0.04
-0.31
0.01
1.4
0.28
0.35
Other Income (Expense)
-2.54
8.95
15.84
25.48
38.71
99.11
138
Pre-Tax Income
0.9
-2.45
-2.64
39.69
3.44
-21.56
-36.8
Tax Provision
35.59
27.37
16.66
-156
-8.89
21.75
26.63
Tax Rate %
-1.64
6.5
13.2
65.17
42.15
77.55
101
Net Income (Continuing Operations)
--
--
--
--
--
--
0.59
  Other Income (Minority Interest)
-1.64
6.5
13.2
65.17
42.15
77.55
102
Net Income
-1.66
3.28
4.17
14.35
7.16
14.06
13.35
Net Margin %
15.93
32.09
--
--
--
--
-- Preferred Dividends
-0.17
-0.25
0.13
0.6
0.38
0.69
0.9
EPS (Basic)
-0.17
-0.25
0.12
0.57
0.37
0.68
0.88
EPS (Diluted)
107
107
60.64
113
113
114
120
Shares Outstanding (Diluted Average)
-2.53
8.57
15.27
23.19
34.32
97.76
138
EBIT
1.12
2.07
3.8
5.03
7.82
11.34
32.05
Depreciation, Depletion and Amortization
-1.41
10.64
19.07
28.22
42.14
109
170
EBITDA

Cashflow Statement

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
-1.64
6.5
13.2
65.17
42.15
77.55
101
Net Income From Continuing Operations
1.12
2.07
3.8
5.03
7.82
11.34
32.05
Depreciation, Depletion and Amortization
-0.72
-1.43
-7.04
-1.91
-9.61
3.89
-53.66
  Change In Receivables
-0.82
-2.23
-2.29
-11.75
-0.38
3.48
-6.59
  Change In Prepaid Assets
8.57
9.93
11.44
12.45
7.03
-7.63
39.75
  Change In Payables And Accrued Expense
5.74
4.37
1.43
-4.19
-16.27
-12.78
-12.31
  Change In Other Working Capital
12.78
10.64
3.54
-5.41
-19.23
-13.04
-32.81
Change In Working Capital
-0.65
0.78
-1.12
-39.04
-3.73
22.24
13.24
Deferred Tax
1.04
0.32
5.03
20.79
34.3
45.09
53.24
Stock Based Compensation
0.26
-0.31
1.24
5.18
8.82
13.56
15.9
Cash Flow from Others
12.92
20
25.69
51.72
70.12
157
183
Cash Flow from Operations
-6.35
-5.85
-5.16
-5.96
-11.21
-2.95
-5.16
Purchase Of Property, Plant, Equipment
--
--
--
--
-19.14
-21.06
-64.27
Purchase Of Business
--
-59.77
-50
-213
-178
-100
-- Purchase Of Investment
--
15
44.77
140
189
112
100
Sale Of Investment
-1.26
-1.37
-2.22
-1.52
-3.02
-4.58
-196
Cash From Other Investing Activities
-7.62
-51.99
-12.6
-80.28
-22.26
-16.9
-165
Cash Flow from Investing
--
--
47.69
--
--
--
-- Issuance of Stock
49.87
-0.27
--
--
--
--
-- Net Issuance of Preferred Stock
--
--
--
--
--
--
--   Issuance of Debt
--
--
--
--
-0.03
-0.04
-14.29
  Payments of Debt
--
--
--
--
-0.03
-0.04
-14.29
Net Issuance of Debt
0.09
0.96
-2.91
--
-14.66
-10.05
-13.11
Other Financing
49.97
0.69
44.78
-23.4
-14.69
-10.09
-27.4
Cash Flow from Financing
--
-0.05
0.16
-0.04
-0
0.44
-0.09
Effect of Exchange Rate Changes
55.27
-31.34
58.03
-51.99
33.17
130
-9.6
Net Change in Cash
-7.62
-7.22
-7.37
-7.48
-14.23
-7.53
-10.83
Capital Expenditure
5.3
12.79
18.32
44.25
55.89
149
172
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Financial Satement


Balance Sheet

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
61.36
29.48
87.71
34.89
59.92
190
231
  Cash And Cash Equivalents
--
44.77
50
123
112
100
90
  Marketable Securities
61.36
74.25
138
158
172
290
321
Cash, Cash Equivalents, Marketable Securities
5.73
6.65
12.58
13.61
22.12
18.24
85.18
  Accounts Receivable
5.73
6.65
12.58
13.61
22.12
18.24
85.18
Total Receivables
--
--
--
--
--
--
6.4
  Inventories, Other
--
--
--
--
--
--
6.4
Total Inventories
2.05
4.6
6.92
23.56
25.22
23.44
28.84
Other Current Assets
69.14
85.51
157
195
219
332
442
Total Current Assets
4.34
8.18
13.02
15.95
18.07
23.8
36.7
  Machinery, Furniture, Equipment
--
0.12
0.05
8.97
0.52
1.02
0.67
  Construction In Progress
4.45
8.2
10.8
10.82
87.49
89.49
88.54
  Other Gross PPE
8.8
16.5
23.87
35.74
106
114
126
Gross Property, Plant and Equipment
-1.65
-3.72
-7.3
-11.47
-18.16
-25.99
-32.49
  Accumulated Depreciation
7.15
12.78
16.56
24.27
87.94
88.32
93.41
Property, Plant and Equipment
--
--
--
--
19.13
39.99
248
Intangible Assets
--
--
--
--
15.21
29.13
156
  Goodwill
1.49
2.04
2.83
49.16
67.61
42.01
36.87
Other Long Term Assets
8.64
14.82
19.39
73.43
175
170
378
Total Long-Term Assets
77.78
100
177
268
394
502
820
Total Assets
10.48
16.43
23.91
34.35
36.73
21.56
55.34
  Accounts Payable
--
--
--
--
--
--
--   Total Tax Payable
--
--
--
--
--
--
--   Other Current Payables
3.93
8.38
13.59
10.39
9.63
13.91
14.55
  Current Accrued Expense
14.41
24.81
37.5
44.73
46.36
35.47
69.89
Accounts Payable & Accrued Expense
--
--
--
--
--
--
--   Short-Term Debt
--
--
--
--
8.78
11.09
12.67
  Short-Term Capital Lease Obligation
--
--
--
--
8.78
11.09
12.67
Short-Term Debt & Capital Lease Obligation
1.47
3.33
4.31
8.81
9.98
9.14
12.52
  Current Deferred Revenue
1.99
4.24
5.47
10.5
9.98
9.14
12.52
DeferredTaxAndRevenue
--
0
--
8.27
8.64
10.85
7.37
Other Current Liabilities
16.39
29.05
42.97
63.5
73.76
66.54
102
Total Current Liabilities
--
--
--
--
--
--
--   Long-Term Debt
--
--
--
--
60.82
58.81
61.01
  Long-Term Capital Lease Obligation
--
--
--
--
60.82
58.81
61.01
Long-Term Debt & Capital Lease Obligation
--
--
--
--
0.27
0.19
0.13
Debt-to-Equity
4.14
5.97
5.65
9.4
0.28
0.29
0.02
NonCurrent Deferred Liabilities
-0
0.59
0.96
1.28
1.91
3.07
67.18
Other Long-Term Liabilities
4.14
6.56
6.6
10.68
63.01
62.18
128
Total Long-Term Liabilities
20.53
35.61
49.57
74.18
137
129
231
Total Liabilities
0.05
0.04
0.11
0.11
0.11
0.11
0.12
Common Stock
73.38
133
--
--
--
--
-- Preferred Stock
-18.61
-71.7
-58.5
9.71
51.86
129
209
Retained Earnings
--
-0.03
0.23
0.07
-0.35
1.88
0.31
Accumulated other comprehensive income (loss)
2.43
3.71
185
184
205
242
380
Additional Paid-In Capital
--
-0
0
--
0
--
-0
Other Stockholders Equity
57.25
64.73
127
194
257
374
589
Total Stockholders Equity
57.25
64.73
127
194
257
374
589
Total Equity
0.74
0.65
0.72
0.72
0.65
0.74
0.72
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Valuation Ratios



Valuation Ratios

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
N/A
N/A
250
59.18
95.08
46.66
41.08
PE Ratio
N/A
N/A
250
59.18
95.08
46.66
41.08
PE Ratio without NRI
--
--
25.05
19.19
15.36
9.63
7.21
PB Ratio
--
--
25.05
19.19
16.59
10.79
12.47
Price-to-Tangible-Book
--
--
99.27
86.49
71.36
24.2
24.74
Price-to-Free-Cash-Flow
--
--
70.71
73.97
56.93
23.04
23.26
Price-to-Operating-Cash-Flow
--
--
5.74
8.42
6.78
6.55
5.59
PS Ratio
--
--
9.61
7.86
6.53
6.12
5.25
EV-to-Revenue
--
--
160
126
91.19
30.96
23.59
EV-to-EBITDA
--
--
199
154
112
34.55
29.08
EV-to-EBIT
--
--
0.5
0.65
0.89
2.89
3.44
Earnings Yield (Joel Greenblatt) %

Valuation and Quality

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
--
3181
3725
3945
3598
4254
Market Cap
--
--
3043
3567
3843
3377
4007
Enterprise Value
--
--
29.98
33.73
35.18
31.73
36.15
Month End Stock Price
0.38
0.36
0.83
0.76
0.31
1.43
0.77
Net Cash per Share
-0.23
-0.78
1.01
1.09
0.73
1.79
1.79
Net Current Asset Value
-0.26
-0.83
0.92
0.85
0.46
1.55
1.34
Net-Net Working Capital
--
--
1.8
4.75
4.2
6.71
7.58
Graham Number
--
--
--
--
--
--
21.5
Earnings Power Value (EPV)
--
--
40.91
32.77
19.75
19.52
13.41
Altman Z-Score
N/A
N/A
N/A
5
3
6
6
Piotroski F-Score
--
--
--
2.16
-2.26
-3.39
0.43
Beneish M-Score
-0.05
-0.12
-0.11
0.21
0.58
0.39
0.44
Scaled Net Operating Assets
-8.92
38.36
0.06
34.93
-1.45
-12.4
10.25
Sloan Ratio %
4.22
2.94
3.66
3.07
2.97
4.99
4.31
Current Ratio
4.22
2.94
3.66
3.07
2.97
4.99
4.25
Quick Ratio
3.74
2.56
3.21
2.48
2.33
4.36
3.13
Cash Ratio
--
330
527
No Debt
N/A
N/A
N/A Interest Coverage
--
--
32.6
55.91
42.8
38.06
39.76
Highest Stock Price
--
--
--
29.4
28.68
15.93
22.63
Lowest Stock Price
--
--
0.6
-4.07
-1.54
-1.12
-3.87
Shares Buyback Ratio %
--
--
-1.5
--
--
--
-- Buyback Yield %
--
101
182
-23.33
29.61
-6.7
31.66
YoY Rev. per Sh. Growth
--
-45.61
148
375
-35.09
83.78
51.72
YoY EPS Growth
--
869
214
-20.7
49
158
83.99
YoY EBITDA Growth
103
103
55.84
109
111
113
117
Shares Outstanding (Basic Average)
107
107
106
110
112
113
118
Shares Outstanding (EOP)
--
--
--
--
--
2
1.83
Beta
03/01/18
10/12/17
03/01/18
02/28/19
02/14/20
02/12/21
  Filing Date
03/01/18
02/28/19
02/14/20
02/12/21
02/12/21
02/12/21
  Restated Filing Date
03/01/18
02/28/19
02/13/20
02/11/21
  Earnings Release Date
--
--
130
28
19
34
34
Number of Shareholders
--
--
549
732
921
827
827
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
CarGurus Inc (NAS:CARG)
www.gurufocus.com/stock/NAS:CARG

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.