Cars.com Inc. [NYSE: CARS] opened at $9.11 and closed at $9.24 a share within trading session on 13/08/2019. That means that the stock gained by 2.49% compared to the closing price from a day before, when the stock touched $9.47.
Between the start and the closing of the latest trading session, Cars.com Inc. [NYSE: CARS] had 1.48 million shares being bought and sold. In the last three months, average trading volumes hovered around 1.46M shares. During the last week, volatility in the share price was set at 9.32%, which placed the metric for the last 30 days at 5.51%. The price of the stock additionally went down to $8.71 during that period and CARS managed to take a rebound to $28.50 in the last 52 weeks.
Cars.com Inc. [NYSE:CARS]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Cars.com Inc. [CARS], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give CARS an Outperform rating. Its stock price has been found in the range of 8.71 to 28.50. This is compared to its latest closing price of $9.24.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cars.com Inc. [CARS] is sitting at 2.22. This is compared to 1 month ago, when its average rating was 2.44.
For the quarter ending in Mar-19 Cars.com Inc. [CARS] generated $0.15 billion in sales. That’s 1.23% higher than the average estimate of $0.15 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 6 Nov (In 85 Days).
Fundamental Analysis of Cars.com Inc. [CARS]
Now let’s turn to look at profitability: with a current Operating Margin for Cars.com Inc. [CARS] sitting at +13.99 and its Gross Margin at +56.86, this company’s Net Margin is now 1.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.05, and its Return on Invested Capital has reached 2.80%. Its Return on Equity is 2.35, and its Return on Assets is 1.51. These metrics suggest that this Cars.com Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Cars.com Inc. [CARS] has generated a Total Debt to Total Equity ratio of 42.54. Similarly, its Total Debt to Total Capital is 29.85, while its Total Debt to Total Assets stands at 26.50. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 40.89, and its Long-Term Debt to Total Capital is 28.69. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.46 and its Total Debt to EBITDA Value is 3.52. The Enterprise Value to Sales for this firm is now 1.99, and its Total Debt to Enterprise Value stands at 0.32. Cars.com Inc. [CARS] has a Price to Book Ratio of 0.90, a Price to Cash Flow Ratio of 9.27 and P/E Ratio of 68.75. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Cars.com Inc. [CARS] earns $472,948 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.31 and its Total Asset Turnover is 0.26. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.39 and its Current Ratio is 1.39. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Cars.com Inc. [CARS] has 67.93M shares outstanding, amounting to a total market cap of $627.67M. Its stock price has been found in the range of 8.71 to 28.50. At its current price, it has moved down by -66.77% from its 52-week high, and it has moved up 8.73% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 11.89. This stock, according to these metrics, is currently Oversold.
Conclusion: Is Cars.com Inc. [CARS] a Reliable Buy?
Cars.com Inc. [CARS] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.