Cars.com (CARS) Fundamental Analysis: Revenue, Earnings & Valuation

8.59 / 10

Outperform

Fundamental rating is Outperform with an 8.6/10 strength. Key drivers include strong Profit‑MV, inventory turnover and Asset‑MV, while equity multiplier and current assets turnover lag. Composite fund score 8.59 reflects robust asset efficiency and low debt ratios.

Analysis Checks(5/10)

Asset-liability ratio (%)

Value55.52

Score1/3

Weight-0.74%

1M Return-0.20%

Operating cycle

Value66.12

Score2/3

Weight1.06%

1M Return0.26%

Days sales outstanding

Value66.12

Score1/3

Weight-1.51%

1M Return-0.38%

Profit-MV

Value0.02

Score2/3

Weight-0.70%

1M Return-0.21%

Current assets turnover ratio

Value3.40

Score0/3

Weight-7.31%

1M Return-1.96%

Long-term debt to working capital ratio (%)

Value4.85

Score2/3

Weight5.50%

1M Return1.39%

Asset-MV

Value-0.55

Score3/3

Weight97.79%

1M Return19.10%

Equity multiplier (DuPont analysis %)

Value2.21

Score0/3

Weight-1.88%

1M Return-0.49%

Inventory turnover days

Value210.83

Score2/3

Weight14.46%

1M Return3.65%

Net profit / Total profit (%)

Value58.45

Score0/3

Weight-6.66%

1M Return-1.68%

Is CARS undervalued or overvalued?

CARS scores 8.59/10 on fundamentals and holds a Discounted valuation at present. Backed by its 4.08% ROE, 2.77% net margin, 24.62 P/E ratio, 1.04 P/B ratio, and -56.16% earnings growth, these metrics solidify its Outperform investment rating.