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

4.12 / 10

Netural

Cars.com's fundamental profile is average with a score of 4.1/10. Key positives include a healthy Profit-MV and Quick ratio, but concerns arise from elevated equity and asset-liability ratios, suggesting higher leverage. Historical back-tests indicate modest one-month returns and variable confidence levels for each factor, reinforcing the need for caution when assessing long-term stability.

Analysis Checks(4/10)

Asset-liability ratio (%)

Value55.43

Score0/3

Weight-6.32%

1M Return-1.10%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value0.80

Score0/3

Weight-3.28%

1M Return-0.57%

Equity multiplier

Value2.24

Score0/3

Weight-1.55%

1M Return-0.27%

Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)

Value1.24

Score0/3

Weight-3.80%

1M Return-0.66%

Profit-MV

Value-0.37

Score2/3

Weight1.79%

1M Return0.32%

Quick ratio

Value2.20

Score2/3

Weight8.54%

1M Return1.40%

Total profit / EBIT (%)

Value45.86

Score2/3

Weight5.99%

1M Return0.88%

Long-term debt to working capital ratio (%)

Value4.99

Score1/3

Weight5.17%

1M Return0.84%

Asset-MV

Value-0.51

Score2/3

Weight88.96%

1M Return10.43%

Cash-MV

Value0.79

Score1/3

Weight4.49%

1M Return0.69%

Is CARS undervalued or overvalued?

CARS scores 4.12/10 on fundamentals and holds a Fair valuation at present. Backed by its 2.56% ROE, 4.16% net margin, 22.24 P/E ratio, 1.40 P/B ratio, and -22.03% earnings growth, these metrics solidify its Netural investment rating.