CarGurus Inc. (CARG)
CarGurus shares moved 65.2% over the last 52 weeks, with a high of $24.22 and a low of $12.66. During this time, the stock outperformed the S&P 500 index by 49.8%. As of April 2023, the company's 50-day average price is $19.02. CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The mid-cap Technology company has 1,403 full time employees and is based in Cambridge, MA. CarGurus has not offered any dividends in the last year.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $454,086 | $588,916 | $551,451 | $951,373 | $1,655,035 | $977,863 |
| Revenue Growth | n/a | 29.69% | -6.36% | 72.52% | 73.96% | -40.92% |
| Net Margins | 14% | 7% | 14% | 12% | 12% | 22% |
| Net Income (k) | $65,170 | $42,146 | $77,553 | $110,373 | $193,785 | $214,094 |
| Net Interest Expense (k) | $2,293 | $4,383 | $1,354 | $972 | $2,884 | $16,144 |
| Depreciation & Amort. (k) | $5,029 | $7,168 | $10,191 | $40,476 | $45,334 | $47,445 |
| Share Price | $38.3 | $36.49 | $25.54 | $29.83 | $32.78 | $21.59 |
| Free Cash Flow (k) | $45,767 | $58,911 | $153,791 | $90,579 | $250,182 | $206,530 |
| Capital Expenditures | $5,956 | $11,205 | $2,952 | $7,713 | $5,924 | $10,804 |
| Entreprise Value (k) | $4,143,261 | $4,033,858 | $2,746,296 | $3,373,150 | $3,462,307 | $2,108,707 |
| EV / EBITDA | 135.79 | 87.94 | 25.13 | 17.77 | 22.1 | 14.24 |
| Total Debt (k) | $9,843 | $26,951 | $54,290 | $110,746 | $48,214 | $188,675 |
| Net Debt / EBITDA | -0.82 | -0.72 | -1.24 | -0.64 | -2.69 | -1.13 |
| Current Ratio | 3.07 | 2.97 | 4.99 | 3.3 | 5.65 | 4.93 |
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Compared to the Technology sector's average of 35.0, CarGurus has a trailing twelve month P/E ratio of 26.1 and, according to its EPS guidance of $1.26, an expected P/E ratio of 15.1. CarGurus's PEG ratio is 2.9 based on the 9.0% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. However, CarGurus is possibly undervalued in terms of its book value because its P/B ratio is 3.4 compared to its sector average of 7.92. As of the date of publication, the company's shares are trading 27.9% above their Graham number of $16.88.
There's an Analyst Consensus of Some Upside Potential for CarGurus:
12 analysts are following CarGurus and have set target prices ranging from $15.0 to $28.0 per share. On average, they have given the company a rating of buy. At the current price of $19.02, CARG is trading -18.8% away from its average analyst target price of $23.42 per share, implying an analyst consensus of some upside potential for the stock. The company has an above average percentage of its shares sold short since 9.6% of the company's shares are tied to short positions. Institutions own 99.2% of CarGurus's shares, while the insider ownership rate stands at 1.91%. which is a small amount of insider investors. The company's biggest shareholder is Blackrock Inc. with a 16% stake in the company worth $322,268,297.
