CarGurus Inc Stock Research

Market Summary

USD19.50+0.38

Market Closed

1.99%

CARG Alerts

Big fall in Revenue (Y/Y)

CARG Stock Price

CARG RSI Chart

CARG Valuation

Market Cap

2.0B

Price/Earnings (Trailing)

24.26

Price/Sales (Trailing)

1.24

EV/EBITDA

12.43

Price/Free Cashflow

8.18

CARG Price/Sales (Trailing)

CARG Profitability

EBT Margin

6.73%

Return on Equity

11.49%

Return on Assets

9.1%

Free Cashflow Yield

12.22%

CARG Fundamentals

CARG Revenue

Revenue (TTM)

1.5B

Revenue Y/Y

-46.13%

Revenue Q/Q

-19.1%

CARG Earnings

Earnings (TTM)

80.6M

Earnings Y/Y

-18.98%

Earnings Q/Q

-34.93%

Price Action

52 Week Range

9.1426.43

(Low)(High)

Last 7 days

2.7%

Last 30 days

23.0%

Last 90 days

11.7%

Trailing 12 Months

-26.3%

CARG Financial Health

Current Ratio

5.65

CARG Investor Care

Shares Dilution (1Y)

1.08%

Diluted EPS (TTM)

0.49

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	1.6T	284.6B	18.01%	6.36%	27.19	5.6	5.28%	-21.40%
TWTR	41.4B	-	27.58%	-2.03%	-370.37	7.92	-	-
SNAP	17.1B	4.5B	29.00%	-30.13%	-12.25	3.78	2.67%	-149.46%
PINS	16.0B	2.8B	12.24%	17.12%	-53.4	5.65	6.09%	-189.94%
MID-CAP
TRIP	2.1B	1.6B	-5.03%	-35.38%	-110.47	1.31	53.79%	81.37%
SMALL-CAP
YELP	2.4B	1.2B	23.65%	10.84%	65.56	2	15.67%	-8.38%
CARG	2.0B	1.5B	22.95%	-26.28%	24.26	1.24	20.30%	-24.52%
CARS	1.3B	662.7M	-3.51%	77.08%	51.35	1.89	5.43%	147.08%
TTGT	1.0B	286.4M	7.23%	-51.23%	28.27	3.56	2.80%	472.58%
EB	756.1M	283.0M	16.95%	-40.19%	-15.16	2.67	31.50%	31.07%
QNST	525.7M	574.8M	0.72%	-11.50%	-34.56	0.91	-2.44%	-358.96%
CDLX	220.1M	294.9M	-29.94%	-80.31%	-0.47	0.74	4.66%	-586.22%
TZOO	147.3M	70.6M	20.41%	34.38%	22.2	2.09	12.58%	628.21%
ZDGE	31.1M	27.5M	13.33%	-59.00%	4.6	1.13	17.28%	-27.23%

Financials for CarGurus

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	-12.0%	1,456	1,655	1,708	1,504	1,211
Gross Profit	-4.1%	631	658	700	712	692
Operating Expenses	-2.6%	535	549	577	578	543
S&GA Expenses	-3.6%	325	337	356	339	310
R&D Expenses	4.8%	130	124	119	116	112
EBITDA	2.8%	127	123	160	-	-
EBITDA Margin	6.1%	0.08*	0.07*	0.13*	-	-
Earnings Before Taxes	-7.3%	103	111	123	135	150
EBT Margin	-6.9%	0.07*	0.07*	0.09*	0.12*	-
Interest Expenses	471.9%	0.00	0.00	0.00	-	-
Net Income	-4.5%	81.00	84.00	89.00	98.00	107
Net Income Margin	-2.4%	0.05*	0.05*	-0.01*	0.09*	-
Free Cahsflow	113.7%	250	117	99.00	140	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	13.4%	1,052	927	983	1,010	946
Current Assets	-2.5%	543	557	604	630	573
Cash Equivalents	-2.7%	457	470	404	338	315
Inventory	-69.0%	2.00	5.00	28.00	22.00	21.00
Net PPE	6.5%	43.00	40.00	37.00	35.00	33.00
Goodwill	0.1%	158	157	156	157	158
Liabilities	107.6%	323	156	232	283	241
Current Liabilities	25.6%	124	99.00	149	176	149
Shareholder's Equity	-5.3%	696	735	578	462	465
Retained Earnings	5.0%	339	323	164	57.00	67.00
Additional Paid-In Capital	-13.4%	358	413	418	407	398
Accumulated Depreciation	8.1%	45.00	42.00	38.00	-	-
Shares Outstanding	0.2%	119	118	118	-	-

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	-10.4%	229	256	124	105	147
Share Based Compensation	1.4%	56.00	55.00	54.00	41.00	35.00
Cashflow From Investing	-44.2%	41.00	73.00	73.00	40.00	26.00
Cashflow From Financing	-39.2%	-128	-92.62	-14.82	14.00	-0.04
Buy Backs	1813.6%	276	14.00	-	-	-

Risks for CARG

What is the probability of a big loss on CARG?

100%

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

87.3%

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

56.1%

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

-10.3%

5-Year Cumulative Returns

-10.7%

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
2023-06-01	MACQUARIE GROUP LTD	added	17.74	22,000	59,000	-%
2023-05-26	ProShare Advisors LLC	reduced	-23.95	3,087	224,403	-%
2023-05-23	Capital Impact Advisors, LLC	unchanged	-	85,658	342,629	0.42%
2023-05-22	PUTNAM INVESTMENTS LLC	reduced	-4.06	303,075	1,388,480	-%
2023-05-22	AMERIPRISE FINANCIAL INC	sold off	-100	-517,000	-	-%
2023-05-18	NEW YORK STATE COMMON RETIREMENT FUND	added	1.95	363,000	1,374,000	-%
2023-05-18	JPMORGAN CHASE & CO	reduced	-16.64	357,000	3,561,000	-%
2023-05-17	VIRGINIA RETIREMENT SYSTEMS ET AL	added	81.53	646,484	1,459,840	0.01%
2023-05-16	Baker Avenue Asset Management, LP	unchanged	-	345	1,382	-%
2023-05-16	Rockefeller Capital Management L.P.	sold off	-100	-124,000	-	-%

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

CARG Alerts

Big fall in Revenue (Y/Y)

CarGurus News

Schedule 13G FIlings of CarGurus

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	arrowmark colorado holdings llc	6.10%	6,276,807	SC 13G
Feb 14, 2023	manulife financial corp	0.04%	-	SC 13G/A
Feb 14, 2023	par investment partners lp	6.6%	6,744,650	SC 13G/A
Feb 09, 2023	vanguard group inc	9.10%	9,370,975	SC 13G/A
Feb 06, 2023	wellington management group llp	13.67%	14,072,052	SC 13G/A
Feb 01, 2023	blackrock inc.	6.8%	6,978,815	SC 13G/A
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

CARG Fair Value

Show Fair-Value

Recent SEC filings of CarGurus

View All Filings

Date Filed	Form Type	Document
May 09, 2023	10-Q	Quarterly Report
May 09, 2023	8-K	Current Report
Apr 26, 2023	ARS	ARS
Apr 26, 2023	DEF 14A	DEF 14A
Apr 26, 2023	DEFA14A	DEFA14A
Apr 21, 2023	8-K	Current Report
Apr 03, 2023	4	Insider Trading
Apr 03, 2023	4	Insider Trading
Apr 03, 2023	4	Insider Trading
Apr 03, 2023	4	Insider Trading

Latest Insider Trading transactions for CARG

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-31	Trevisan Jason	sold (taxes)	-430,985	18.68	-23,072	chief executive officer
2023-03-31	Quinn Matthew Todd	sold (taxes)	-61,868	18.68	-3,312	chief technology officer
2023-03-31	Caputo Thomas Michael	sold (taxes)	-40,797	18.68	-2,184	chief product officer
2023-03-31	Zamora Javier Esquivel	sold (taxes)	-14,159	18.68	-758	general counsel and secretary
2023-03-31	Sarnoff Dafna	sold (taxes)	-45,317	18.68	-2,426	chief marketing officer
2023-03-31	Steinert Langley	sold (taxes)	-116,657	18.68	-6,245	executive chairman
2023-03-31	Eldridge Andrea Lee	sold (taxes)	-65,211	18.68	-3,491	chief people officer
2023-03-31	Zales Samuel	sold (taxes)	-288,662	18.68	-15,453	coo and president
2023-03-01	Sarnoff Dafna	sold (taxes)	-17,795	18.14	-981	chief marketing officer
2023-03-01	Eldridge Andrea Lee	sold (taxes)	-4,099	18.14	-226	chief people officer

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

2023-03-31

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

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Revenue

Total revenue

$ 231,963

$ 430,608

Cost of Goods and Services Sold [Abstract]

Total cost of revenue

^[1]

76,983

248,733

Gross profit

154,980

181,875

Operating expenses:

Sales and marketing

75,577

87,581

Product, technology, and development

36,607

30,653

General and administrative

24,919

33,121

Depreciation and amortization

3,818

3,861

Total operating expenses

140,921

155,216

Income from operations

14,059

26,659

Other income (expense), net:

Interest income

3,743

Other income (expense), net

595

(156)

Total other income (expense), net

4,338

(119)

Income before income taxes

18,397

26,540

Provision for income taxes

6,531

7,702

Consolidated net income

11,866

18,838

Net loss attributable to redeemable noncontrolling interest

(4,266)

(1,072)

Net income attributable to CarGurus, Inc.

16,132

19,910

Accretion of redeemable noncontrolling interest to redemption value

82,000

Net income (loss) attributable to common stockholders - basic

$ 16,132

$ (62,090)

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

Basic

$ 0.14

$ (0.53)

Diluted

$ 0.10

$ (0.53)

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

Basic

115,358,475

118,031,325

Diluted

115,915,737

118,031,325

Marketplace [Member]

Revenue

Total revenue

$ 167,127

$ 163,289

Cost of Goods and Services Sold [Abstract]

Total cost of revenue

^[1]

15,533

12,209

Wholesale [Member]

Revenue

Total revenue

25,186

90,994

Cost of Goods and Services Sold [Abstract]

Total cost of revenue

^[1]

22,068

58,182

Product [Member]

Revenue

Total revenue

39,650

176,325

Cost of Goods and Services Sold [Abstract]

Total cost of revenue

^[1]

$ 39,382

$ 178,342

[1]	Includes depreciation and amortization expense for the three months ended March 31, 2023 and 2022 of $7,758 and $7,324, respectively.

CARG Balance Sheet

2023-03-31

Unaudited Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Current assets

Cash and cash equivalents

$ 456,696

$ 469,517

Accounts receivable, net of allowance for doubtful accounts of $1,054 and $1,809, respectively

42,395

46,817

Inventory

1,637

5,282

Prepaid expenses, prepaid income taxes and other current assets

18,114

21,972

Deferred contract costs

9,387

8,541

Restricted cash

14,985

5,237

Total current assets

543,214

557,366

Property and equipment, net

42,748

40,128

Intangible assets, net

45,552

53,054

Goodwill

157,689

157,467

Operating lease right-of-use assets

196,413

56,869

Restricted cash

9,378

Deferred tax assets

47,385

35,488

Deferred contract costs, net of current portion

10,446

8,853

Other non-current assets

8,132

8,499

Total assets

1,051,579

927,102

^[1]

Current liabilities

Accounts payable

42,701

32,529

Accrued expenses, accrued income taxes and other current liabilities

45,010

39,193

Deferred revenue

20,808

12,249

Operating lease liabilities

15,480

14,762

Total current liabilities

123,999

98,733

Operating lease liabilities

194,931

51,656

Deferred tax liabilities

Other non–current liabilities

4,336

5,301

Total liabilities

323,296

155,744

Commitments and contingencies (Note 8)

Redeemable noncontrolling interest

32,475

36,749

Stockholders’ equity:

Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding

Additional paid-in capital

357,748

413,092

Retained earnings

339,175

323,043

Accumulated other comprehensive loss

(1,229)

(1,644)

Total stockholders’ equity

695,808

734,609

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

1,051,579

927,102

Class A Common Stock

Stockholders’ equity:

Common stock

102

Class B Common Stock

Stockholders’ equity:

Common stock

$ 16

[1]

As of December 31, 2022, Digital Wholesale assets did not reflect certain Dealer-to-Dealer and IMCO related capitalized website development assets from the U.S. Marketplace segment. During the three months ended March 31, 2023, the Company updated Digital Wholesale assets to reflect certain Dealer-to-Dealer and IMCO related capitalized website development amortization assets from the U.S. Marketplace segment and accordingly updated Digital Wholesale assets as of December 31, 2022 for comparative purposes.