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Upturn AI SWOT - About
CARG 
CarGurus (CARG)
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Upturn Advisory Summary
03/27/2025: CARG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -33.41% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.01B USD | Price to earnings Ratio 144.1 | 1Y Target Price 40.04 |
Price to earnings Ratio 144.1 | 1Y Target Price 40.04 | ||
Volume (30-day avg) 1509329 | Beta 1.53 | 52 Weeks Range 21.18 - 41.33 | Updated Date 03/30/2025 |
52 Weeks Range 21.18 - 41.33 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.2 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.35% | Operating Margin (TTM) 23.31% |
Management Effectiveness
Return on Assets (TTM) 11.32% | Return on Equity (TTM) 3.62% |
Valuation
Trailing PE 144.1 | Forward PE 15.27 | Enterprise Value 2897814672 | Price to Sales(TTM) 3.36 |
Enterprise Value 2897814672 | Price to Sales(TTM) 3.36 | ||
Enterprise Value to Revenue 3.24 | Enterprise Value to EBITDA 16.72 | Shares Outstanding 89429104 | Shares Floating 87077566 |
Shares Outstanding 89429104 | Shares Floating 87077566 | ||
Percent Insiders 2.48 | Percent Institutions 97.21 |
Analyst Ratings
Rating 4.07 | Target Price 39.42 | Buy 4 | Strong Buy 6 |
Buy 4 | Strong Buy 6 | ||
Hold 3 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
CarGurus
Company Overview
History and Background
CarGurus was founded in 2006 by Langley Steinert, co-founder of TripAdvisor. It started as a blog focused on automotive analysis and evolved into an online automotive marketplace connecting buyers and sellers of new and used cars. A significant milestone was its IPO in 2017.
Core Business Areas
- Marketplace: Connects car shoppers with dealers, providing a platform for searching, comparing, and contacting dealerships. Revenue is primarily generated through subscription fees paid by dealerships to list their inventory.
- Digital Advertising Solutions: Offers advertising products for dealers to increase visibility and drive traffic to their listings. This includes targeted display ads and sponsored listings.
Leadership and Structure
The CEO is Jason Trevisan. The organizational structure consists of functional departments, including sales, marketing, engineering, and product development.
Top Products and Market Share
Key Offerings
- Used Car Listings: CarGurus's primary product, providing access to a wide inventory of used cars from dealerships across the US. Competitors include AutoTrader, Cars.com and Edmunds. Market share of used car listings estimated at 25% of online automotive marketplaces.
- New Car Listings: Offers new car inventory listings, allowing users to search for new cars in their area. Revenue is generated through dealership subscriptions. Competitors include AutoTrader, Cars.com and Edmunds. Market Share is estimated at 15%.
- Digital Advertising Solutions: Advertising products like display ads for dealers. Competitors include Search Ads 360, WordStream, and AdRoll. The annual revenue from this product is estimated to be $100 million.
Market Dynamics
Industry Overview
The online automotive marketplace industry is competitive and growing, driven by increasing internet penetration and consumer preference for online car shopping. The industry is influenced by factors such as vehicle sales, economic conditions, and technological advancements.
Positioning
CarGurus is positioned as a data-driven marketplace that offers transparency and value to both car shoppers and dealers. Its competitive advantage lies in its algorithms and data analytics that help users find the best deals.
Total Addressable Market (TAM)
The total addressable market for online automotive marketplaces is estimated to be around $40 billion. CarGurus is well-positioned to capture a significant portion of this TAM due to its strong brand recognition and data-driven approach.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Data-Driven Platform
- Large User Base
- Extensive Dealer Network
- Strong technology and algorithims
Weaknesses
- Dependence on Dealer Subscriptions
- Competition from Larger Players
- Limited International Presence
- Vulnerability to Economic Downturns
- High marketing spend
Opportunities
- Expanding into New Markets
- Developing New Products and Services
- Acquiring Complementary Businesses
- Increasing Mobile Engagement
- Leveraging AI and Machine Learning
Threats
- Increased Competition
- Changes in Consumer Preferences
- Economic Downturn
- Regulatory Changes
- Disruptive Technologies
Competitors and Market Share
Key Competitors
- KMX
- AN
- CVNA
Competitive Landscape
CarGurus's advantages include its data-driven approach and strong brand recognition. Disadvantages include competition from larger players like AutoNation and Carvana.
Major Acquisitions
Puzzl Automotive
- Year: 2021
- Acquisition Price (USD millions): 30
- Strategic Rationale: Expanded digital marketing capabilities for automotive dealerships.
Growth Trajectory and Initiatives
Historical Growth: CarGurus has experienced strong growth in revenue and user base over the past several years, driven by its data-driven platform and increasing online car shopping adoption.
Future Projections: Analysts project continued growth for CarGurus, driven by expansion into new markets and the development of new products and services. Revenue growth is expected to be around 10-15% per year over the next five years.
Recent Initiatives: Recent initiatives include investments in machine learning, expansion of its digital advertising solutions, and strategic partnerships with automotive dealerships.
Summary
CarGurus is a strong player in the online automotive marketplace, leveraging its data-driven platform for growth. Its strengths lie in its brand, user base, and dealer network. Competition remains a challenge, particularly from larger, more established players, and the need to constantly innovate and adapt to changing market dynamics is crucial. CarGurus should also be mindful of economic downturns which impact the car market overall.
Similar Companies
- KMX
- AN
- CVNA
- GOOGL
- FB
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Industry Publications
- Third party websites for estimations
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share and financial data are estimates and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About CarGurus
Exchange NASDAQ | Headquaters Boston, MA, United States | ||
IPO Launch date 2017-10-12 | CEO, CFO, Principal Accounting Officer & Director Mr. Jason M. Trevisan | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 1282 | Website https://www.cargurus.com |
Full time employees 1282 | Website https://www.cargurus.com | ||
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace that allows customers to search for new and used car listings from its dealers; and connects dealers to a large audience of informed and engaged consumers while providing dealers with actionable data-based insights. It also offers Digital Deal which allows shoppers to start purchase from a VDP on eligible listings that provides them with purchase options; Finance in Advance, where eligible consumers can pre-qualify for financing on cars from dealerships that offer financing from partners; Sell My Car " Top Dealer Offers which allows dealers to make tailored trade-in offers; and Sell My Car " Instant Max Cash Offer which allows consumers to sell vehicles to dealers online. In addition, the company provides dealer listings and data insights products; auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
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