-2.21%
8.52%
27.84%
59.77%
70.63%
24.31%
11.23%
AI Spotlight on CARG
Company Description
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.
Market Data
| Last Price | 39.66 |
| Change Percentage | -2.21% |
| Open | 40.62 |
| Previous Close | 40.55 |
| Market Cap ( Millions) | 4113 |
| Volume | 220613 |
| Year High | 40.7 |
| Year Low | 21.18 |
| M A 50 | 37.18 |
| M A 200 | 29.46 |
Financial Ratios
| FCF Yield | 2.36% |
| Dividend Yield | 0.00% |
| ROE | -8.08% |
| Debt / Equity | 39.05% |
| Net Debt / EBIDTA | -58.27% |
| Price To Book | 8.48 |
| Price Earnings Ratio | -95.75 |
| Price To FCF | 42.45 |
| Price To sales | 4.63 |
| EV / EBITDA | 40.79 |
News
- Jan -08 - CarGurus to Present at 27th Annual Needham Growth Conference
- Dec -24 - Is CarGurus (CARG) Outperforming Other Auto-Tires-Trucks Stocks This Year?
- Dec -17 - CarGurus Study Uncovers Shift in Car Shopper Sentiment as Prices and Selection Improve
- Dec -12 - CarGurus Examines 2024 Auto Market Influences and Expectations for 2025 Following a Year Defined by Affordability
- Dec -05 - Are Auto-Tires-Trucks Stocks Lagging CarGurus (CARG) This Year?
- Nov -21 - CarGurus: Solid Monetization Strategy, But Upside Is Limited
- Nov -19 - CarGurus (CARG) Upgraded to Buy: What Does It Mean for the Stock?
- Nov -19 - Are Auto-Tires-Trucks Stocks Lagging Geely Automobile (GELYY) This Year?
- Nov -12 - CarGurus to Present at RBC Capital Markets 2024 Global Technology, Internet, Media and Telecommunications Conference
- Nov -09 - CarGurus, Inc. (CARG) Q3 2024 Earnings Call Transcript
- Nov -08 - CarGurus Analysts Boost Their Forecasts Following Better-Than-Expected Earnings
- Nov -08 - CarGurus (CARG) Reports Q3 Earnings: What Key Metrics Have to Say
- Nov -08 - CarGurus (CARG) Surpasses Q3 Earnings and Revenue Estimates
- Nov -07 - CarGurus shares rally after fourth-quarter forecast, but this hurdle lies ahead
- Nov -04 - CarGurus' Latest Digital Retail Solution Connects Canadian Dealers with Purchase-Ready Shoppers More Efficiently
- Oct -24 - PLOW vs. CARG: Which Stock Should Value Investors Buy Now?
- Oct -17 - CarGurus To Report Third Quarter 2024 Financial Results
- Oct -17 - CarGurus Celebrates Opening of New Global Headquarters in Boston
- Oct -08 - Need for Vehicle Affordability Becoming More Pronounced, According to New CarGurus Report
- Oct -07 - Best Growth Stocks to Buy for October 7th
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> United States Marketplace
Expected Growth : 6 %
What the company do ?
The United States Marketplace from CarGurus, Inc. is a leading online automotive marketplace that connects buyers with sellers of new and used cars, providing research tools and dealer reviews.
Why we expect these perspectives ?
Strong demand for used cars, increasing online car shopping, and CarGurus' market-leading inventory and pricing data drive growth in the United States marketplace. Additionally, the company's expanding dealer network, improved user experience, and investments in digital marketing contribute to the 6% growth rate.
Segment n°2 -> Digital Wholesale
Expected Growth : 8 %
What the company do ?
Digital Wholesale from CarGurus, Inc. is a platform that enables dealers to purchase and sell used vehicles digitally, streamlining the wholesale process.
Why we expect these perspectives ?
CarGurus' Digital Wholesale segment growth is driven by increasing adoption of online car buying, expansion into new markets, and strategic partnerships. Additionally, the company's proprietary Instant Market Value (IMV) pricing algorithm and robust inventory management system enable dealers to efficiently source and sell vehicles, further fueling growth.
Segment n°3 -> Other
Expected Growth : 5 %
What the company do ?
Other from CarGurus, Inc. refers to the remaining revenue streams, including data analytics and advertising services, not classified under the Used Cars or Subscription segments.
Why we expect these perspectives ?
CarGurus' 5% growth is driven by increasing online car shopping, rising demand for used cars, and expanding dealer network. Additionally, the company's investments in artificial intelligence, machine learning, and data analytics enhance its platform, attracting more consumers and dealers. Further, CarGurus' expansion into new markets and services, such as financing and insurance, contribute to its growth.
Cargurus, Inc. Products
| Product Range | What is it ? |
|---|---|
| Listings | CarGurus provides a platform for dealerships and private sellers to list their vehicles for sale, allowing buyers to browse and compare prices. |
| Dealer Dashboard | A platform for dealerships to manage their inventory, respond to leads, and track performance metrics. |
| Market Value Analysis | A tool that provides instant market value analysis for vehicles, helping buyers and sellers determine fair prices. |
| Dealer Reviews | A platform for buyers to review and rate their experiences with dealerships, promoting transparency and accountability. |
| Advertising | Targeted advertising solutions for dealerships and OEMs to reach in-market car shoppers. |
| Inventory Management | A tool that helps dealerships manage their inventory, including pricing, merchandising, and distribution. |
CarGurus, Inc.'s Porter Forces
Threat Of Substitutes
CarGurus has a low threat of substitutes due to its unique features and user-friendly interface, making it difficult for customers to find alternative options.
Bargaining Power Of Customers
CarGurus has a medium bargaining power of customers due to the presence of multiple dealerships and private sellers, giving customers some negotiating power.
Bargaining Power Of Suppliers
CarGurus has a low bargaining power of suppliers due to its strong market position and ability to negotiate with dealerships and private sellers.
Threat Of New Entrants
CarGurus has a high threat of new entrants due to the low barriers to entry in the online marketplace, making it easy for new competitors to emerge.
Intensity Of Rivalry
CarGurus operates in a highly competitive market with many established players, leading to a high intensity of rivalry among competitors.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 23.96% |
| Debt Cost | 3.95% |
| Equity Weight | 76.04% |
| Equity Cost | 11.79% |
| WACC | 9.91% |
| Leverage | 31.51% |
CarGurus, Inc. : Quality Control
CarGurus, Inc. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| IAC | IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, … |
| EDR | Endeavor Group Holdings, Inc. operates as an entertainment, sports, and content company in the United States, the United Kingdom, and internationally. It operates in three segments: Owned Sports Properties, Events, … |
| TWLO | Twilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. … |
| LYV | Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned … |
| YELP | Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Endeavor Group Holdings
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1-Year Total Return ->
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Live Nation Entertainment
A-Score
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CarGurus
A-Score
1-Year Total Return ->
4
Yelp
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1-Year Total Return ->
5
Twilio
A-Score
1-Year Total Return ->
6
