Cars.com Inc. (CARS) 10-Year Financial Performance & Capital Metrics

CARS • • Industrial / General

Consumer CyclicalAuto DealershipsDigital Automotive MarketplacesConsumer Vehicle Marketplaces

AboutCars.com Inc. operates as a digital marketplace and provides solutions for the automotive industry. Its platform connects car shoppers with sellers. The company, through its marketplace, dealer websites, and other digital products, showcases dealer inventory, elevate and amplify dealers' and automotive manufacturers' (OEMs) brands, connect sellers with ready-to-buy audience, and empower shoppers with the resources and information needed to make car buying decisions. It also offers marketplace products, such as marketplace subscription advertising and social selling services; digital solutions, including Website platform hosting, AI chat tool, digital retailing, and review and reputation management; and advertising comprising display advertising, instant loan screening and approvals, digital advertising, and in-market audio services. As of December 31, 2021, the company served 19,179 dealer customers in 50 states, which included franchise and independent dealers, with digital and brick-and-mortar stores; and primary automakers selling vehicles in the United States. Its customers are local car dealers, OEMs, and other national advertisers. Cars.com Inc. was founded in 1998 and is based in Chicago, Illinois.Show more

Revenue $719M +4.3%
EBITDA $161M +3.6%
Net Income $48M -59.3%
EPS (Diluted) 0.72 -58.6%
Gross Margin 82.71% +0.5%
EBITDA Margin 22.34% -0.7%
Operating Margin 7.44% -5.3%
Net Margin 6.7% -61.0%
ROE 9.6% -64.5%
ROIC 4.33% -6.0%
Debt/Equity 0.89 -9.4%
Interest Coverage 1.66 -0.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 8/9
✓FCF machine: 20.8% free cash flow margin
✓High quality earnings: Operating CF exceeds net income

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.79%

5Y3.46%

3Y4.86%

TTM0.2%

Profit (Net Income) CAGR

10Y-22.18%

5Y-

3Y64.67%

TTM-23.64%

EPS CAGR

10Y-21.65%

5Y-

3Y68.69%

TTM-21.11%

ROCE

10Y Avg-3.52%

5Y Avg-7.55%

3Y Avg6.02%

Latest5.29%

Peer Comparison

Consumer Vehicle Marketplaces

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
CARGCarGurus, Inc.	2.84B	34.96	174.80	-2.17%	16.41%	40.48%	6.35%	0.36
CARSCars.com Inc.	718.96M	12.02	16.69	4.35%	4.16%	6.27%	20.8%	0.89
CANGCango Inc.	526.45M	1.52	1.18	-52.73%	-79.97%	-46.74%		0.04
UXINUxin Limited	758.7M	3.68	-0.10	45.02%	-19.22%
VRMVroom, Inc.	93.75M	18.03	-0.20	-98.7%	-27.66%	-61.78%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	596.51M	633.11M	626.26M	662.13M	606.68M	547.5M	623.68M	653.88M	689.18M	719.15M
Revenue Growth %	0.2%	0.06%	-0.01%	0.06%	-0.08%	-0.1%	0.14%	0.05%	0.05%	0.04%
Cost of Goods Sold+	116.69M	129.86M	139.7M	90.43M	99.55M	101.54M	114.2M	114.96M	122.2M	124.33M
COGS % of Revenue	0.2%	0.21%	0.22%	0.14%	0.16%	0.19%	0.18%	0.18%	0.18%	0.17%
Gross Profit+	479.82M	503.24M	560.72M	569.76M	507.13M	445.97M	509.48M	538.92M	566.98M	594.82M
Gross Margin %	0.8%	0.79%	0.9%	0.86%	0.84%	0.81%	0.82%	0.82%	0.82%	0.83%
Gross Profit Growth %	0.26%	0.05%	0.11%	0.02%	-0.11%	-0.12%	0.14%	0.06%	0.05%	0.05%
Operating Expenses+	322.09M	326.59M	352.3M	487.77M	953.19M	1.33B	461.14M	472.88M	512.86M	541.32M
OpEx % of Revenue	0.54%	0.52%	0.56%	0.74%	1.57%	2.44%	0.74%	0.72%	0.74%	0.75%
Selling, General & Admin	304.77M	308.03M	328.88M	368.47M	354.06M	303.16M	281.9M	289.47M	312.28M	320.21M
SG&A % of Revenue	0.51%	0.49%	0.53%	0.56%	0.58%	0.55%	0.45%	0.44%	0.45%	0.45%
Research & Development	0	0	0	0	0	0	77.32M	89.02M	99.58M	0
R&D % of Revenue	-	-	-	-	-	-	0.12%	0.14%	0.14%	-
Other Operating Expenses	87.54M	91.64M	97.59M	119.3M	599.13M	1.03B	101.93M	94.39M	101M	221.11M
Operating Income+	157.73M	176.65M	134.26M	83.92M	-446.06M	-887.33M	48.34M	66.04M	54.12M	53.5M
Operating Margin %	0.26%	0.28%	0.21%	0.13%	-0.74%	-1.62%	0.08%	0.1%	0.08%	0.07%
Operating Income Growth %	6.07%	0.12%	-0.24%	-0.37%	-6.32%	-0.99%	1.05%	0.37%	-0.18%	-0.01%
EBITDA+	238.55M	259.76M	222.9M	187.73M	-329.18M	-774.05M	150.27M	160.43M	155.12M	160.68M
EBITDA Margin %	0.4%	0.41%	0.36%	0.28%	-0.54%	-1.41%	0.24%	0.25%	0.23%	0.22%
EBITDA Growth %	3.77%	0.09%	-0.14%	-0.16%	-2.75%	-1.35%	1.19%	0.07%	-0.03%	0.04%
D&A (Non-Cash Add-back)	80.82M	83.11M	88.64M	103.81M	116.88M	113.28M	101.93M	94.39M	101M	107.18M
EBIT	157.73M	176.65M	134.26M	84.65M	-444.5M	-898.55M	48.21M	57.9M	50.53M	94.06M
Net Interest Income+	4K	94K	-12.37M	-27.72M	-30.77M	-37.86M	-38.73M	-35.32M	-32.42M	-32.2M
Interest Income	4K	94K	0	0	0	0	0	0	0	0
Interest Expense	0	0	12.37M	27.72M	30.77M	37.86M	38.73M	35.32M	32.42M	32.2M
Other Income/Expense	105K	308K	-12.09M	-27M	-29.22M	-49.08M	-38.85M	-43.46M	-36.01M	8.37M
Pretax Income+	157.84M	176.96M	122.16M	56.93M	-475.28M	-936.41M	9.48M	22.58M	18.11M	61.86M
Pretax Margin %	0.26%	0.28%	0.2%	0.09%	-0.78%	-1.71%	0.02%	0.03%	0.03%	0.09%
Income Tax+	0	588K	-102.28M	18.12M	-29.95M	-119.29M	-1.31M	5.37M	-100.34M	13.68M
Effective Tax Rate %	1%	1%	1.84%	0.68%	0.94%	0.87%	1.14%	0.76%	6.54%	0.78%
Net Income+	157.84M	176.37M	224.44M	38.81M	-445.32M	-817.12M	10.79M	17.21M	118.44M	48.19M
Net Margin %	0.26%	0.28%	0.36%	0.06%	-0.73%	-1.49%	0.02%	0.03%	0.17%	0.07%
Net Income Growth %	-0.73%	0.12%	0.27%	-0.83%	-12.47%	-0.83%	1.01%	0.59%	5.88%	-0.59%
Net Income (Continuing)	157.84M	176.37M	224.44M	38.81M	-445.32M	-817.12M	10.79M	17.21M	118.44M	48.19M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.20	2.46	3.13	0.55	-6.65	-12.15	0.15	0.25	1.74	0.72
EPS Growth %	-0.73%	0.12%	0.27%	-0.82%	-13.09%	-0.83%	1.01%	0.67%	5.96%	-0.59%
EPS (Basic)	2.20	2.46	3.13	0.55	-6.65	-12.15	0.16	0.25	1.77	0.73
Diluted Shares Outstanding	71.6M	71.6M	71.73M	70.55M	67M	67.24M	71.34M	69.65M	68.23M	67.39M
Basic Shares Outstanding	71.59M	71.59M	71.66M	70.32M	67M	67.24M	71.94M	68.22M	66.74M	66.01M
Dividend Payout Ratio	-	-	2.9%	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	98.52M	119.54M	142.64M	153.94M	122.44M	178.08M	147.44M	148.63M	178.44M	214.33M
Cash & Short-Term Investments	100K	8.9M	20.56M	25.46M	13.55M	67.72M	39.07M	31.71M	39.2M	50.67M
Cash Only	100K	8.9M	20.56M	25.46M	13.55M	67.72M	39.07M	31.71M	39.2M	50.67M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	86.68M	98.3M	100.86M	108.92M	101.76M	93.65M	98.89M	107.93M	125.37M	133.74M
Days Sales Outstanding	53.04	56.67	58.78	60.04	61.22	62.43	57.88	60.25	66.4	67.88
Inventory	0	0	11.41M	9.26M	0	0	0	0	0	0
Days Inventory Outstanding	-	-	29.81	37.39	-	-	-	-	-	-
Other Current Assets	0	942K	9.81M	10.29M	603K	10.22M	1.67M	605K	1.31M	16.13M
Total Non-Current Assets+	2.38B	2.43B	2.37B	2.45B	1.91B	897.63M	859.77M	876.24M	994.01M	897.53M
Property, Plant & Equipment	18.9M	20.46M	39.74M	41.48M	43.7M	41.32M	43.01M	45.22M	43.85M	40.7M
Fixed Asset Turnover	31.57x	30.94x	15.76x	15.96x	13.88x	13.25x	14.50x	14.46x	15.72x	17.67x
Goodwill	703.23M	788.11M	788.11M	884.45M	505.88M	0	26.23M	102.86M	147.06M	143.28M
Intangible Assets	1.64B	1.61B	1.53B	1.51B	1.33B	835.17M	769.42M	707.09M	669.17M	585.69M
Long-Term Investments	9.63M	11.79M	11.05M	10.27M	26.47M	21.14M	21.11M	21.03M	20.98M	0
Other Non-Current Assets	9.63M	-394K	-16.93M	-11.56M	0	0	0	0	0	27.33M
Total Assets+	2.47B	2.55B	2.51B	2.6B	2.03B	1.08B	1.01B	1.02B	1.17B	1.11B
Asset Turnover	0.24x	0.25x	0.25x	0.25x	0.30x	0.51x	0.62x	0.64x	0.59x	0.65x
Asset Growth %	-0.04%	0.03%	-0.01%	0.04%	-0.22%	-0.47%	-0.06%	0.02%	0.14%	-0.05%
Total Current Liabilities+	88.37M	71.98M	90.15M	110.71M	98.81M	90.37M	94.29M	106.01M	145.75M	116.89M
Accounts Payable	8.53M	7.84M	6.58M	11.63M	12.43M	16.51M	15.42M	18.23M	22.26M	33.5M
Days Payables Outstanding	26.68	22.05	17.19	46.94	45.58	59.36	49.28	57.88	66.48	98.34
Short-Term Debt	0	0	21.16M	26.85M	31.39M	7.76M	8.94M	14.13M	23.13M	0
Deferred Revenue (Current)	1000K	1000K	720K	1000K	0	0	0	0	0	0
Other Current Liabilities	38.67M	43.01M	47.51M	36.52M	16.74M	18.32M	23.61M	19.32M	31.67M	36.3M
Current Ratio	1.11x	1.66x	1.58x	1.39x	1.24x	1.97x	1.56x	1.40x	1.22x	1.83x
Quick Ratio	1.11x	1.66x	1.46x	1.31x	1.24x	1.97x	1.56x	1.40x	1.22x	1.83x
Cash Conversion Cycle	-	-	71.39	50.49	-	-	-	-	-	-
Total Non-Current Liabilities+	80.78M	58M	741.76M	862.92M	788.12M	645.17M	514.89M	534.43M	534.59M	483.5M
Long-Term Debt	0	0	557.19M	665.31M	611.28M	576.14M	457.38M	458.25M	460.12M	455.29M
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Deferred Tax Liabilities	0	8.32M	146.48M	177.92M	133M	30.8M	31.09M	1.4M	8.76M	6.77M
Other Non-Current Liabilities	80.78M	58M	19.2M	19.69M	43.84M	38.23M	26.43M	74.78M	65.72M	21.43M
Total Liabilities	169.15M	129.98M	831.91M	973.63M	886.92M	735.54M	609.18M	640.44M	680.34M	600.38M
Total Debt+	0	0	578.35M	692.16M	642.67M	583.9M	466.32M	472.38M	483.25M	455.29M
Net Debt	-100K	-8.9M	557.79M	666.7M	629.12M	516.18M	427.25M	440.67M	444.05M	404.62M
Debt / Equity	-	-	0.34x	0.43x	0.56x	1.72x	1.17x	1.23x	0.98x	0.89x
Debt / EBITDA	-	-	2.59x	3.69x	-	-	3.10x	2.94x	3.12x	2.83x
Net Debt / EBITDA	-0.00x	-0.03x	2.50x	3.55x	-	-	2.84x	2.75x	2.86x	2.52x
Interest Coverage	-	-	10.85x	3.03x	-14.49x	-23.44x	1.25x	1.87x	1.67x	1.66x
Total Equity+	2.3B	2.42B	1.68B	1.63B	1.14B	340.18M	398.02M	384.43M	492.11M	511.49M
Equity Growth %	-0.01%	0.05%	-0.31%	-0.03%	-0.3%	-0.7%	0.17%	-0.03%	0.28%	0.04%
Book Value per Share	32.19	33.76	23.41	23.06	17.03	5.06	5.58	5.52	7.21	7.59
Total Shareholders' Equity	2.3B	2.42B	1.68B	1.63B	1.14B	340.18M	398.02M	384.43M	492.11M	511.49M
Common Stock	2.3B	2.42B	716K	683K	668K	674K	692K	662K	659K	643K
Retained Earnings	0	0	176.58M	118.24M	-367.07M	-1.18B	-1.15B	-1.13B	-1.01B	-961.55M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-9.89M	-16.73M	-21.61M	-30.84M	-7.64M	-6.8M	-2M	0	951K	-1.6M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	190.06M	199.15M	185.93M	163.55M	101.48M	138.62M	138M	128.51M	136.72M	152.52M
Operating CF Margin %	0.32%	0.31%	0.3%	0.25%	0.17%	0.25%	0.22%	0.2%	0.2%	0.21%
Operating CF Growth %	0.96%	0.05%	-0.07%	-0.12%	-0.38%	0.37%	-0%	-0.07%	0.06%	0.12%
Net Income	157.84M	176.37M	224.44M	38.81M	-445.32M	-817.12M	10.79M	17.21M	118.44M	48.19M
Depreciation & Amortization	80.82M	83.11M	88.64M	103.81M	116.88M	113.28M	101.93M	94.39M	101M	107.18M
Stock-Based Compensation	100K	0	2.63M	9.42M	7.59M	15.15M	21.43M	22.34M	28.49M	30.55M
Deferred Taxes	0	0	-108.84M	16.69M	-44.92M	-103.58M	-2.93M	1.28M	-114.5M	11.89M
Other Non-Cash Items	-22.98M	-21.96M	-4.45M	-18.45M	449.54M	933.62M	10.61M	12.4M	9.64M	-34.32M
Working Capital Changes	-25.63M	-38.36M	-16.49M	13.26M	17.72M	-2.74M	-3.83M	-19.11M	-6.35M	-10.97M
Change in Receivables	-5.54M	-13.58M	-5.01M	-1.16M	2.26M	3.73M	-5.35M	-9.34M	-15.57M	-12.32M
Change in Inventory	-1.64M	-10.18M	-2.41M	9.35M	0	-12.04M	0	0	0	0
Change in Payables	-3.4M	-1.55M	-432K	2.51M	874K	3.99M	-1.1M	2.61M	3.72M	11.1M
Cash from Investing+	-1.15M	-126.75M	-32.77M	-171.38M	-21.86M	-16.71M	-39.45M	-84.38M	-97.05M	-24.6M
Capital Expenditures	-9.11M	-9.7M	-32.77M	-14.23M	-21.26M	-16.71M	-1.45M	-19.71M	-1.28M	-3M
CapEx % of Revenue	0.02%	0.02%	0.05%	0.02%	0.04%	0.03%	0%	0.03%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	62K	2.28M	276K	11K	-599K	0	-17.74M	0	-19.6M	-10.54M
Cash from Financing+	-189M	-63.6M	-141.49M	12.73M	-91.54M	-67.73M	-127.2M	-51.49M	-31.75M	-115.96M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	-650M	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-189M	-63.6M	-75.24M	-2.58M	-3.42M	0	-7.2M	-6.26M	-9.21M	-36.78M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	180.95M	189.45M	153.16M	149.31M	80.23M	121.9M	118.81M	108.8M	115.84M	149.52M
FCF Margin %	0.3%	0.3%	0.24%	0.23%	0.13%	0.22%	0.19%	0.17%	0.17%	0.21%
FCF Growth %	1.04%	0.05%	-0.19%	-0.03%	-0.46%	0.52%	-0.03%	-0.08%	0.06%	0.29%
FCF per Share	2.53	2.65	2.14	2.12	1.20	1.81	1.67	1.56	1.70	2.22
FCF Conversion (FCF/Net Income)	1.20x	1.13x	0.83x	4.21x	-0.23x	-0.17x	12.79x	7.47x	1.15x	3.17x
Interest Paid	0	0	11.76M	26.78M	29.65M	26.43M	38.34M	33.37M	30.42M	32.52M
Taxes Paid	0	0	11.53M	7K	1.74M	805K	0	545K	17.64M	6.49M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	6.8%	7.47%	10.96%	2.35%	-32.18%	-110.33%	2.92%	4.4%	27.02%	9.6%
Return on Invested Capital (ROIC)	5.1%	5.62%	4.34%	2.78%	-16.46%	-50.67%	4.31%	6%	4.61%	4.33%
Gross Margin	80.44%	79.49%	89.53%	86.05%	83.59%	81.45%	81.69%	82.42%	82.27%	82.71%
Net Margin	26.46%	27.86%	35.84%	5.86%	-73.4%	-149.24%	1.73%	2.63%	17.19%	6.7%
Debt / Equity	-	-	0.34x	0.43x	0.56x	1.72x	1.17x	1.23x	0.98x	0.89x
Interest Coverage	-	-	10.85x	3.03x	-14.49x	-23.44x	1.25x	1.87x	1.67x	1.66x
FCF Conversion	1.20x	1.13x	0.83x	4.21x	-0.23x	-0.17x	12.79x	7.47x	1.15x	3.17x
Revenue Growth	20.28%	6.13%	-1.08%	5.73%	-8.37%	-9.75%	13.91%	4.84%	5.4%	4.35%

Revenue by Segment

	2018	2019	2020	2021	2022
Subscription Advertising And Digital Solutions	-	-	-	-	540.83M
Subscription Advertising And Digital Solutions Growth	-	-	-	-	-
Display Advertising	112.79M	91.94M	84.63M	85.17M	88.4M
Display Advertising Growth	-	-18.49%	-7.95%	0.64%	3.79%
Other Major Product And Services	10.59M	11.88M	7.88M	7.9M	15.3M
Other Major Product And Services Growth	-	12.23%	-33.71%	0.29%	93.71%
Pay Per Lead	30.76M	26.91M	18.56M	12.35M	9.35M
Pay Per Lead Growth	-	-12.52%	-31.03%	-33.47%	-24.26%
Marketplace Subscription Advertising	-	475.96M	436.44M	518.27M	-
Marketplace Subscription Advertising Growth	-	-	-8.30%	18.75%	-
Online Subscription Advertising	507.99M	-	-	-	-
Online Subscription Advertising Growth	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Cars.com Inc. (CARS) has a price-to-earnings (P/E) ratio of 16.7x. This is roughly in line with market averages.

Growth & Financials

Cars.com Inc. (CARS) reported $719.8M in revenue for fiscal year 2024. This represents a 45% increase from $496.0M in 2014.

Cars.com Inc. (CARS) grew revenue by 4.3% over the past year. Growth has been modest.

Yes, Cars.com Inc. (CARS) is profitable, generating $30.0M in net income for fiscal year 2024 (6.7% net margin).

Dividend & Returns

Cars.com Inc. (CARS) has a return on equity (ROE) of 9.6%. This is below average, suggesting room for improvement.

Cars.com Inc. (CARS) generated $135.1M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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