Cargurus Stock Fundamentals
| CARG Stock | USD 23.22 0.31 1.35% |
CarGurus fundamentals help investors to digest information that contributes to CarGurus' financial success or failures. It also enables traders to predict the movement of CarGurus Stock. The fundamental analysis module provides a way to measure CarGurus' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to CarGurus stock.
CarGurus |
CarGurus Company Operating Margin Analysis
CarGurus' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current CarGurus Operating Margin | (0.1) % |
Most of CarGurus' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, CarGurus is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
| Competition |
Based on the recorded statements, CarGurus has an Operating Margin of -0.099%. This is 101.39% lower than that of the Interactive Media & Services sector and significantly lower than that of the Communication Services industry. The operating margin for all United States stocks is 98.2% lower than that of the firm.
CarGurus Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining CarGurus's current stock value. Our valuation model uses many indicators to compare CarGurus value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CarGurus competition to find correlations between indicators driving CarGurus's intrinsic value. More Info.CarGurus is rated third in return on equity category among related companies. It is rated third in return on asset category among related companies reporting about 0.70 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for CarGurus is roughly 1.43 . Comparative valuation analysis is a catch-all model that can be used if you cannot value CarGurus by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CarGurus' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CarGurus' earnings, one of the primary drivers of an investment's value.CarGurus Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses CarGurus' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of CarGurus could also be used in its relative valuation, which is a method of valuing CarGurus by comparing valuation metrics of similar companies.CarGurus is currently under evaluation in operating margin category among related companies.
CarGurus Fundamentals
| Return On Equity | 0.0318 | ||||
| Return On Asset | 0.0222 | ||||
| Profit Margin | 0.03 % | ||||
| Operating Margin | (0.1) % | ||||
| Current Valuation | 2.38 B | ||||
| Shares Outstanding | 91.44 M | ||||
| Shares Owned By Insiders | 2.65 % | ||||
| Shares Owned By Institutions | 97.35 % | ||||
| Number Of Shares Shorted | 7.2 M | ||||
| Price To Earning | 19.41 X | ||||
| Price To Book | 3.89 X | ||||
| Price To Sales | 2.63 X | ||||
| Revenue | 914.24 M | ||||
| Gross Profit | 657.72 M | ||||
| EBITDA | 81.1 M | ||||
| Net Income | 22.05 M | ||||
| Cash And Equivalents | 404.43 M | ||||
| Cash Per Share | 3.40 X | ||||
| Total Debt | 194.39 M | ||||
| Debt To Equity | 0.09 % | ||||
| Current Ratio | 4.06 X | ||||
| Book Value Per Share | 5.70 X | ||||
| Cash Flow From Operations | 124.53 M | ||||
| Short Ratio | 6.33 X | ||||
| Earnings Per Share | 0.19 X | ||||
| Price To Earnings To Growth | 1.35 X | ||||
| Target Price | 25.18 | ||||
| Number Of Employees | 1.34 K | ||||
| Beta | 1.59 | ||||
| Market Capitalization | 2.49 B | ||||
| Total Asset | 918.93 M | ||||
| Retained Earnings | 354.15 M | ||||
| Working Capital | 276.01 M | ||||
| Current Asset | 115.19 M | ||||
| Current Liabilities | 31.91 M | ||||
| Net Asset | 918.93 M |
About CarGurus Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze CarGurus's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CarGurus using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CarGurus based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts. Cargurus Inc operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 1203 people.
Pair Trading with CarGurus
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CarGurus position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CarGurus will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to CarGurus could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CarGurus when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CarGurus - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CarGurus to buy it.
The correlation of CarGurus is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CarGurus moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CarGurus moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CarGurus can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out CarGurus Piotroski F Score and CarGurus Altman Z Score analysis. For more detail on how to invest in CarGurus Stock please use our How to Invest in CarGurus guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for CarGurus Stock analysis
When running CarGurus' price analysis, check to measure CarGurus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarGurus is operating at the current time. Most of CarGurus' value examination focuses on studying past and present price action to predict the probability of CarGurus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarGurus' price. Additionally, you may evaluate how the addition of CarGurus to your portfolios can decrease your overall portfolio volatility.
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Is CarGurus' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarGurus. If investors know CarGurus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarGurus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CarGurus is measured differently than its book value, which is the value of CarGurus that is recorded on the company's balance sheet. Investors also form their own opinion of CarGurus' value that differs from its market value or its book value, called intrinsic value, which is CarGurus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarGurus' market value can be influenced by many factors that don't directly affect CarGurus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarGurus' value and its price as these two are different measures arrived at by different means. Investors typically determine if CarGurus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarGurus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.