CarGurus Inc Stock Research

Market Summary

USD17.26+0.34

Market Closed

2.01%

CARG Stock Price

CARG RSI Chart

CARG Valuation

Market Cap

2.0B

Price/Earnings (Trailing)

22.96

Price/Sales (Trailing)

1.2

EV/EBITDA

13.32

Price/Free Cashflow

17.5

CARG Price/Sales (Trailing)

CARG Profitability

EBT Margin

7.22%

Return on Equity

15.44%

Return on Assets

9.08%

Free Cashflow Yield

5.72%

CARG Fundamentals

CARG Revenue

Revenue (TTM)

1.7B

Revenue Y/Y

91.31%

Revenue Q/Q

-16.58%

CARG Earnings

Earnings (TTM)

89.2M

Earnings Y/Y

-30.13%

Earnings Q/Q

5.79%

Price Action

52 Week Range

9.1450.03

(Low)(High)

Last 7 days

7.0%

Last 30 days

29.5%

Last 90 days

21.7%

Trailing 12 Months

-41.1%

CARG Financial Health

Current Ratio

4.06

CARG Investor Care

Shares Dilution (1Y)

1.08%

Diluted EPS (TTM)

-1.14

Peers (Alternatives to CarGurus)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
GOOG	1.3T	275.7B	16.48%	-22.00%	19.5	4.74	15.26%	-5.14%
TWTR	41.4B	5.2B	27.58%	-2.03%	-370.37	7.92	17.45%	-129.08%
SNAP	18.1B	4.6B	27.60%	-61.45%	-16.16	3.93	23.31%	-79.38%
PINS	17.9B	2.8B	16.97%	-0.52%	292.57	6.46	13.75%	-82.50%
MID-CAP
TRIP	3.0B	1.4B	35.40%	-6.89%	-426.49	2.16	77.48%	96.34%
YELP	2.2B	1.2B	19.15%	-3.50%	55.71	1.9	16.76%	4.85%
CARG	2.0B	1.7B	29.48%	-41.15%	22.96	1.2	123.63%	-14.84%
SMALL-CAP
TTGT	1.5B	301.4M	18.20%	-33.33%	80.72	4.94	29.74%	-8.73%
CARS	1.1B	644.0M	27.67%	11.96%	1.1K	1.7	4.14%	-95.27%
EB	846.7M	249.0M	61.89%	-33.49%	-11.11	3.4	61.54%	46.49%
QNST	813.9M	566.1M	12.26%	-2.25%	-63.3	1.44	-5.47%	-207.45%
CDLX	235.6M	306.1M	47.12%	-88.02%	-2.38	0.77	25.37%	19.99%
TZOO	66.4M	65.7M	29.44%	-39.20%	73.99	1.01	6.69%	-81.76%
ZDGE	29.8M	27.4M	32.93%	-65.53%	3.89	1.22	25.56%	-19.10%

Financials for CarGurus

Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3
Revenue	13.5%	1,708	1,504	1,211	951	764
Gross Profit	-1.7%	700	712	692	657	618
Operating Expenses	-0.1%	577	578	543	509	480
S&GA Expenses	4.9%	356	339	310	291	268
R&D Expenses	3.2%	119	116	112	106	99
EBITDA	-23.1%	123	160	164	166	-
EBITDA Margin	-45.5%	0.07*	0.13*	0.17*	0.22*	-
Earnings Before Taxes	-8.4%	123	135	150	149	138
EBT Margin	-19.3%	0.07*	0.09*	0.12*	0.16*	0.18*
Interest Expenses	-	0	-	-	-	-
Net Income	-9.0%	89	98	107	109	105
Net Income Margin	1051.6%	0.05*	-0.01*	0.09*	0.11*	0.14*
Free Cahsflow	18.4%	117	99	140	91	178

* denotes actual numbers (not divided by Millions)

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3
Assets	-2.7%	983	1,010	946	932	820
Current Assets	-4.1%	604	630	573	563	442
Cash Equivalents	19.6%	404	338	315	232	231
Inventory	29.9%	28	22	21	20	6
Net PPE	4.2%	37	35	33	32	30
Goodwill	-0.5%	156	157	158	158	156
Liabilities	-18.0%	232	283	241	252	176
Current Liabilities	-15.4%	149	176	149	171	102
Shareholder's Equity	25.1%	578	462	465	517	589
Retained Earnings	188.2%	164	57	67	129	209
Additional Paid-In Capital	2.6%	418	407	398	388	380
Accumulated Depreciation	8.1%	45	42	38	35	32
Shares Outstanding	0.2%	119	118	118	117	-

* denotes actual numbers (not divided by Millions)

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3
Cashflow From Operations	18.6%	124	105	147	98	183
Share Based Compensation	31.2%	54	41	35	35	35
Cashflow From Investing	83.1%	73	40	26	-68.15	-165.11
Cashflow From Financing	-204.1%	-14.82	14	-0.04	18	-27.40

Risks for CARG

What is the probability of a big loss on CARG?

96.5%

Probability that CarGurus stock will be more than 20% underwater in next one year

80.4%

Probability that CarGurus stock will be more than 30% underwater in next one year.

49.2%

Probability that CarGurus stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does CARG drawdown profile look like?

Y-axis is the maximum loss one would have experienced if CarGurus was unfortunately bought at previous high price.

Drawdowns

Returns for CARG

Cumulative Returns on CARG

-12.7%

5-Year Cumulative Returns

-21.6%

3-Year Cumulative Returns

What are the long-term rolling returns for CARG?

FIve years rolling returns for CarGurus.

Annualized Returns

Which funds bought or sold CARG recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-01-26	DUPONT CAPITAL MANAGEMENT CORP	sold off	-100	-66,000	-	-%
2023-01-26	STRS OHIO	added	364.37	443,000	566,000	-%
2023-01-25	FIFTH THIRD BANCORP	sold off	-100	-1,000	-	-%
2023-01-25	Lindbrook Capital, LLC	added	442.5	5,080	6,080	-%
2023-01-24	Centerpoint Advisors, LLC	unchanged	-	-	1,000	-%
2023-01-24	NATIONAL BANK OF CANADA /FI/	added	40.47	255,536	1,056,540	-%
2023-01-24	BAILLIE GIFFORD & CO	added	0.32	-4,000	455,000	-%
2023-01-23	SJS Investment Consulting Inc.	reduced	-58.33	140	140	-%
2023-01-23	Annapolis Financial Services, LLC	new	-	14,010	14,010	-%
2023-01-23	Allspring Global Investments Holdings, LLC	reduced	-2.15	-2,095	91,905	-%

Latest Funds Activity

Are funds buying CARG calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own CARG

No. of Funds

CarGurus News

Schedule 13G FIlings of CarGurus

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Sep 12, 2022	par investment partners lp	5.3%	5,420,000	SC 13G
Feb 16, 2022	manulife financial corp	9.11%	-	SC 13G/A
Feb 14, 2022	dragoneer investment group, llc	9.1%	9,283,746	SC 13G/A
Feb 09, 2022	vanguard group inc	9.74%	9,908,089	SC 13G/A
Feb 07, 2022	steinert langley	12.5%	14,441,633	SC 13G/A
Feb 04, 2022	wellington management group llp	10.65%	10,834,185	SC 13G/A
Feb 03, 2022	blackrock inc.	6.0%	6,100,334	SC 13G/A
Dec 10, 2021	morgan stanley	0.2%	243,224	SC 13G/A
Nov 10, 2021	wellington management group llp	10.70%	10,754,509	SC 13G/A
Apr 12, 2021	vanguard group inc	10.04%	9,815,367	SC 13G/A

CARG Fair Value

CarGurus fair value in different scenarios

The table shows the Fair Value estimates for CarGurus for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	40.22 133.02%	72.76 321.55%	144.74 738.59%	183.35 962.28%	244.05 1313.96%
Current Inflation	36.74 112.86%	64.94 276.25%	125.98 629.90%	158.76 819.81%	210.10 1117.27%
Very High Inflation	32.46 88.06%	55.56 221.90%	104.08 503.01%	130.20 654.35%	170.92 890.27%

Fair Value

Very Pessimistic

Pessimistic

Base Case

Optimistic

Very Optimistic

Very Low Inflation

40.22

133.02%

72.76

321.55%

144.74

738.59%

183.35

962.28%

244.05

1313.96%

Current Inflation

36.74

112.86%

64.94

276.25%

125.98

629.90%

158.76

819.81%

210.10

1117.27%

Very High Inflation

32.46

88.06%

55.56

221.90%

104.08

503.01%

130.20

654.35%

170.92

890.27%

Historical CarGurus Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of CarGurus

View All Filings

Date Filed	Form Type	Document
Jan 12, 2023	8-K	Current Report
Jan 05, 2023	4	Insider Trading
Jan 05, 2023	4	Insider Trading
Jan 05, 2023	4	Insider Trading
Jan 05, 2023	4	Insider Trading
Jan 05, 2023	4	Insider Trading
Jan 05, 2023	4	Insider Trading
Dec 08, 2022	8-K	Current Report
Dec 02, 2022	4	Insider Trading
Dec 02, 2022	4	Insider Trading

Latest Insider Trading transactions for CARG

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-01-03	Eldridge Andrea Lee	sold (taxes)	-32,307.1	14.01	-2,306	chief people officer
2023-01-03	Caputo Thomas Michael	sold (taxes)	-49,399.3	14.01	-3,526	chief product officer
2023-01-03	Quinn Matthew Todd	sold (taxes)	-52,019.1	14.01	-3,713	chief technology officer
2023-01-03	Zales Samuel	sold (taxes)	-254,520	14.01	-18,167	coo and president
2023-01-03	Trevisan Jason	sold (taxes)	-286,392	14.01	-20,442	chief executive officer
2023-01-03	Steinert Langley	sold (taxes)	-73,734.6	14.01	-5,263	executive chairman
2022-12-01	Eldridge Andrea Lee	sold (taxes)	-4,473.36	13.08	-342	chief people officer
2022-12-01	Sarnoff Dafna	sold (taxes)	-51,940.7	13.08	-3,971	chief marketing officer
2022-11-01	Gellot Yann Bruno	sold (taxes)	-2,063.12	15.17	-136	svp, finance & pao
2022-09-30	Steinert Langley	sold (taxes)	-100,239	14.17	-7,074	executive chairman

About CarGurus

Jason Trevisan

www.cargurus.com

1200

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers. The company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom; and the Autolist and PistonHeads online marketplaces as independent brands in the United States and the United Kingdom. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

CARG Income Statement

2022-09-30

Unaudited Condensed Consolidated Income Statements - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Revenue

$ 426,454

$ 222,915

$ 1,368,291

$ 612,031

Cost of revenue

^[1]

275,669

60,033

847,780

134,408

Gross profit

150,785

162,882

520,511

477,623

Operating expenses:

Sales and marketing

83,319

66,626

266,505

200,935

Product, technology, and development

30,208

26,539

92,215

79,333

General and administrative

4,760

20,414

71,395

67,095

Depreciation and amortization

3,842

9,227

11,539

25,916

Total operating expenses

122,129

122,806

441,654

373,279

Income from operations

28,656

40,076

78,857

104,344

Other income (expense), net

200

143

(75)

426

Income before income taxes

28,856

40,219

78,782

104,770

Provision for income taxes

10,032

10,952

23,059

28,556

Consolidated net income

18,824

29,267

55,723

76,214

Net (loss) income attributable to redeemable noncontrolling interest

(1,576)

(3,871)

(3,398)

Net income attributable to CarGurus, Inc.

20,400

29,199

59,594

79,612

Accretion of redeemable noncontrolling interest to redemption value

(86,564)

25,056

Net income attributable to common stockholders - basic

$ 106,964

$ 29,199

$ 34,538

$ 79,612

Net income per share attributable to common stockholders: (Note 10)

Basic

$ 0.90

$ 0.25

$ 0.29

$ 0.68

Diluted

$ 0.14

$ 0.24

$ 0.28

$ 0.66

Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders:

Basic

118,683,642

117,412,164

118,370,925

116,955,188

Diluted

132,243,636

120,438,373

122,159,270

119,051,228

Marketplace [Member]

Revenue

$ 165,309

$ 159,925

$ 492,524

$ 476,183

Cost of revenue

^[1]

14,956

11,687

40,422

33,986

Wholesale [Member]

Revenue

47,045

45,215

213,976

112,532

Cost of revenue

^[1]

41,789

28,992

146,489

75,344

Product [Member]

Revenue

214,100

17,775

661,791

23,316

Cost of revenue

^[1]

$ 218,924

$ 19,354

$ 660,869

$ 25,078

[1]	Includes depreciation and amortization expense for the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2022 and 2021 of $7,341, $1,429, $22,063 and $3,571, respectively.

CARG Balance Sheet

2022-09-30

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 404,429	$ 231,944
Investments		90,000
Accounts receivable, net of allowance for doubtful accounts of $1,122 and $420, respectively	120,059	189,324
Inventory	28,166	19,656
Prepaid expenses, prepaid income taxes and other current assets	29,647	16,430
Deferred contract costs	8,039	9,045
Restricted cash	13,506	6,709
Total current assets	603,846	563,108
Property and equipment, net	36,833	32,210
Intangible assets, net	60,535	83,915
Goodwill	156,216	158,287
Operating lease right-of-use assets	55,793	60,609
Restricted cash	9,376	9,627
Deferred tax assets	44,008	13,378
Deferred contract costs, net of current portion	7,298	5,867
Other non-current assets	8,950	4,573
Total assets	982,855	931,574
Current liabilities
Accounts payable	67,149	66,153
Accrued expenses, accrued income taxes and other current liabilities	56,970	78,586
Deferred revenue	12,737	12,784
Operating lease liabilities	12,025	13,186
Total current liabilities	148,881	170,709
Operating lease liabilities	52,942	57,519
Deferred tax liabilities	23	58
Other non–current liabilities	30,466	23,639
Total liabilities	232,312	251,925
Commitments and contingencies (Note 8)
Redeemable noncontrolling interest	172,612	162,808
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	418,013	387,868
Retained earnings	163,796	129,258
Accumulated other comprehensive loss	(3,997)	(403)
Total stockholders’ equity	577,931	516,841
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	982,855	931,574
Class A Common Stock
Stockholders’ equity:
Common stock	103	102
Class B Common Stock
Stockholders’ equity:
Common stock	$ 16	$ 16