Obermatt

Flags

Financial distress

Cars.com

NYQ:CARS · US14575E1055
Interactive Media & ServicesMedium

360

76
EV / EBIT68
Price / Owner Earnings61
Owner Earnings Yield89
Dividend Yield1
Price/Sales77
EV / Gross Profit62
Price/Book86
Return on Capital51
Cash Return on Capital69
Return on Equity53
EBIT Margin49
Gross Profitability73
Cash Conversion91
Accruals73
Owner Earnings Margin71
Sales growth21
Profit Growth43
Long-Term EPS Growth63
Owner Earnings Growth40
Reinvestment45
Price momentum56
Debt load30
Refinancing80
Debt Payback14
Liquidity30
Analyst ratings24
Opinion Changes24
Price Target Upside55
Market mood41
Value Creation10/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Cars.com clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryInteractive Media & Services
SizeMedium
TypePublic Company
ExchangeNYSE
Founded2016
Employees1,590
Websitecars.com
ISINUS14575E1055
Last UpdateApr 2, 2026
Index & Theme
Web DevelopmentDigital MediaAd NetworkAd TargetingBrand MarketingMarketing AutomationSocial Media MarketingCustomer AnalyticsArtificial IntelligenceAutomotiveDigital MarketingE-Commerce

Description

Cars.com Inc. is an audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience wit…

Analysis

Quality compounder

Cars.com Inc. earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess.

On valuation, the picture is attractive. The owner-earnings multiple stands at 5.1×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around -13% a year, against analyst forecasts of 12%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is stretched. The company scores 10/20 on our value-creation score: creating some value.

Flags to be aware of: Some accounting patterns deserve a closer look. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
41
2023202420252026

All-time high

91

Jan 2023

All-time low

40

Jan 2025

Average rank

65

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
77
64
67
81
Price/Earnings
93
38
73
100
Price/Book
86
73
70
81
Dividend Yield
1
1
1
1
Value (overall)
84
51
85
99

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →