CARS

Cars.com Inc.

Fundamental data last updated:September 27, 2026

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company profile

SECTOR

Communication Services

industry

Internet Content & Information

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Cars.com Inc. operates as a digital marketplace and provides solutions for the automotive industry. Its platform connects car shoppers with sellers. The company, through its marketplace, dealer websites, and other digital products, showcases dealer inventory, elevate and amplify dealers' and automotive manufacturers' (OEMs) brands, connect sellers with ready-to-buy audience, and empower shoppers with the resources and information needed to make car buying decisions. It also offers marketplace products, such as marketplace subscription advertising and social selling services; digital solutions, including Website platform hosting, AI chat tool, digital retailing, and review and reputation management; and advertising comprising display advertising, instant loan screening and approvals, digital advertising, and in-market audio services. As of December 31, 2021, the company served 19,179 dealer customers in 50 states, which included franchise and independent dealers, with digital and brick-and-mortar stores; and primary automakers selling vehicles in the United States. Its customers are local car dealers, OEMs, and other national advertisers. Cars.com Inc. was founded in 1998 and is based in Chicago, Illinois.

 


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VALUATION

P/E

22.18

Market Cap ($M USD)

$569.09M

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

0.79

PRICE TO BOOK

1.30

EV / EBITDA

6.11

5-Year Average P/E

Free Cash Flow Yield

27.81%

DCF Value

$32.74

Graham Number

$8.99

Price to FCF

3.60

EV to FCF

6.04

Earnings Yield

4.51%

FCF Yield

27.81%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.46

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$776.80M

Return on Equity (ROE)

5.71%

FREE CASH FLOW

Operating Margin

9.72%

Debt-to-Equity

0.99

Piotroski F-Score

8

Altman Z-Score

0.37

Return on Invested Capital (ROIC)

7.52%

Current Ratio

1.87

Quick Ratio

1.87

Net Debt to EBITDA

2.48

Interest Coverage

4.55

Gross Profit margin

82.95%

FCF PER SHARE

$2.69

REVENUE PER SHARE

$12.29

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Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing Cars.com Inc. relative to its DCF Value and Graham Number, suggesting a potential mispricing opportunity. With a Price/Earnings ratio of 25.45, the stock seems expensive at first glance, but the Earnings Yield of 3.93% and a concerning Altman Z-score of 0.45 indicate potential financial distress. The absence of a Forward P/E and a negative earnings surprise further complicate the growth narrative. However, the stock’s current price is well below its intrinsic value, hinting at a possible deep value play for those willing to stomach the risks.

AI Exposure / Tech Reliance

Operating in the Auto - Dealerships industry, Cars.com Inc. is uniquely positioned to leverage AI and tech advancements to enhance its digital marketplace. As consumer behavior shifts towards online car buying, the company's ability to integrate AI-driven analytics and personalized customer experiences could be pivotal. This adaptability may provide a competitive edge in an increasingly tech-driven market.

The Bull Case

For the value or GARP investor, Cars.com Inc. offers compelling reasons to buy. The company boasts a robust ROIC of 7.52% and a strong FCF Yield of 24.24%, indicating efficient capital allocation and healthy cash generation. A Piotroski F-Score of 8 suggests solid financial health, while an Operating Margin of 9.72% reflects effective cost management. These metrics collectively paint a picture of a company with pricing power and operational efficiency, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite some strengths, Cars.com Inc. faces significant structural risks. The Altman Z-score of 0.45 signals potential financial instability, raising red flags about its long-term viability. Its Price/Book ratio of 1.49 and Price/Sales ratio of 0.90 suggest the stock might be overvalued relative to its book and sales value. Additionally, the company's earnings surprise of -6.25% indicates challenges in meeting market expectations, which could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$13.00

Institutional Ownership %

1-Year Beta

1.64

Insider Buying % (6 Mo)

Distance to 52-Week High

37.23%

Distance to 52-Week Low

27.31%

EARNINGS SURPRISE %

-6.25%

50-DAY SMA

$9.87

200-DAY SMA

$11.17

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.