* Note: Prices are in Million (M) USD.
Description:
Cars.com, LLC, is a digital marketplace and provides solutions for the automotive industry. The company is headquartered in Chicago, Illinois.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $51 M
Debt : $455 M
EBITDA : $154 M
Net Debt (Debt - Cash): $405 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Communication
Industry: Internet Content & Information
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 9.65
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $116 M
Average Revenue: $606 M
Revenue Converted To Free Cash FLow(%): 19%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 15.31%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $719 M
Revenue 4 Years Ago (2020-12-31): $548 M
Last 5 Years Average Revenue Growth: 6%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $67 M
Share Count 5 Years Ago (2020-12-31): $67 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.74
Trailing 12-Month Earnings Per Share (EPS): $0.70
Average Earnings Per Share (EPS): $1.22
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -17%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $12
52-Week Low: $10
Threshold Price (15% Above 52-Week Low): $11
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $802 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Cars.com Inc (CARS) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 23, Fair Value PE 20, Industry Based PE is 25 and Growth based PE is 10. Based on these all values average assigned is 19.50.
Value-Trades has assined P/E value 19.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.22.
The fair value of Cars.com Inc (CARS) stock should be (19.50 x $1.22) = $23.79
