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Upturn AI SWOT - About
CARS 
Cars.com Inc (CARS)
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Upturn Advisory Summary
03/27/2025: CARS (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
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -8.19% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 725.95M USD | Price to earnings Ratio 15.79 | 1Y Target Price 18.14 |
Price to earnings Ratio 15.79 | 1Y Target Price 18.14 | ||
Volume (30-day avg) 981185 | Beta 2.17 | 52 Weeks Range 10.80 - 21.24 | Updated Date 04/2/2025 |
52 Weeks Range 10.80 - 21.24 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.72 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.7% | Operating Margin (TTM) 10.96% |
Management Effectiveness
Return on Assets (TTM) 2.93% | Return on Equity (TTM) 9.6% |
Valuation
Trailing PE 15.79 | Forward PE 5.06 | Enterprise Value 1130560620 | Price to Sales(TTM) 1.01 |
Enterprise Value 1130560620 | Price to Sales(TTM) 1.01 | ||
Enterprise Value to Revenue 1.56 | Enterprise Value to EBITDA 5.59 | Shares Outstanding 63847500 | Shares Floating 59195534 |
Shares Outstanding 63847500 | Shares Floating 59195534 | ||
Percent Insiders 8.8 | Percent Institutions 94.86 |
Analyst Ratings
Rating 3.71 | Target Price 22.29 | Buy 1 | Strong Buy 3 |
Buy 1 | Strong Buy 3 | ||
Hold 2 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Cars.com Inc
Company Overview
History and Background
Cars.com Inc. was founded in 1998 as a consortium of newspaper companies to create an online classifieds marketplace for cars. It spun off from Gannett in 2017 and became an independent publicly traded company.
Core Business Areas
- Marketplace Solutions: Provides an online marketplace connecting car shoppers with sellers (dealers and OEMs). This includes listings, search functionalities, and vehicle information. The product aims to drive high-intent traffic to dealer websites.
- Advertising Solutions: Offers advertising solutions for automotive dealers and manufacturers to reach potential customers on the Cars.com platform. This includes targeted ads and brand building opportunities.
- Digital Retail Solutions: Provides digital retailing tools for dealerships to enable online car buying experiences, including pricing, financing, and trade-in evaluations.
Leadership and Structure
The leadership team is headed by the CEO. The organizational structure includes departments for sales, marketing, technology, finance, and operations.
Top Products and Market Share
Key Offerings
- Cars.com Marketplace: The core platform offering vehicle listings, reviews, and research tools for car shoppers. The marketplace aims to connect car buyers with sellers. Competitors include AutoTrader, Edmunds, and TrueCar.
- Dealer Inspire: A website and digital marketing solutions provider for car dealerships, acquired by Cars.com. It helps dealerships manage their online presence and generate leads. Competitors include Dealer.com and Sincro.
- Accu-Trade: Provides vehicle valuation and appraisal tools for dealerships. This allows dealers to accurately assess the value of vehicles for trade-ins or purchases. Competitors include Kelley Blue Book Instant Cash Offer and Black Book.
Market Dynamics
Industry Overview
The automotive marketplace industry is highly competitive and evolving with the increasing adoption of online car shopping. It is influenced by factors such as consumer preferences, technological advancements, and economic conditions.
Positioning
Cars.com Inc. positions itself as a leading digital automotive marketplace connecting buyers and sellers. Its competitive advantages include its brand recognition, large user base, and comprehensive suite of solutions for dealers.
Total Addressable Market (TAM)
The TAM for automotive digital advertising and marketplace solutions is estimated to be in the tens of billions of dollars annually. Cars.com is positioned to capture a portion of this market through its various offerings.
Upturn SWOT Analysis
Strengths
- Established Brand Recognition
- Large User Base
- Comprehensive Dealer Solutions
- Strong Marketplace Platform
Weaknesses
- Dependence on Automotive Industry
- Intense Competition
- Fluctuating Advertising Revenue
- Potential for Disruption by New Technologies
Opportunities
- Expansion into New Markets
- Growth in Digital Retail
- Partnerships with OEMs
- Adoption of New Technologies (e.g., AI)
Threats
- Economic Downturn
- Changes in Consumer Behavior
- Emergence of New Competitors
- Regulatory Changes
Competitors and Market Share
Key Competitors
- KMX
- AN
- CVNA
- TSLA
Competitive Landscape
Cars.com competes with other online automotive marketplaces and digital marketing solutions providers. It differentiates itself through its brand recognition, large user base, and suite of dealer solutions. Competitive disadvantages may include slower innovation compared to more agile startups.
Major Acquisitions
Dealer Inspire
- Year: 2018
- Acquisition Price (USD millions): 165
- Strategic Rationale: Enhanced digital retail capabilities for dealerships. Improved Cars.com's offerings in website design and marketing for automotive retailers.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends are dependent on company performance and require specific financial data.
Future Projections: Future growth projections are based on analyst estimates and depend on various market factors.
Recent Initiatives: Recent initiatives include strategic acquisitions (like Dealer Inspire), platform enhancements, and expansion of digital retail solutions.
Summary
Cars.com is a relatively strong player in the online automotive marketplace with a recognizable brand. It has a good suite of products for dealers, but faces stiff competition. It needs to continue to innovate to stay ahead and be aware of market disruption and economic downturns.
Similar Companies
AN
AutoNation Inc
AN
AutoNation Inc
CVNA
Carvana Co
CVNA
Carvana Co
GOOGL
Alphabet Inc Class A
GOOGL
Alphabet Inc Class A
KMX
CarMax Inc
KMX
CarMax Inc
TSLA
Tesla Inc
TSLA
Tesla Inc
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data is subject to change. Accuracy of external source data cannot be guaranteed.
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 Cars.com Inc
Exchange NYSE | Headquaters Chicago, IL, United States | ||
IPO Launch date 2017-05-18 | CEO & Director Mr. T. Alex Vetter | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 1800 | Website https://www.cars.com |
Full time employees 1800 | Website https://www.cars.com | ||
Cars.com Inc., an audience-driven technology company, provides solutions for the automotive industry in the United States. The company offers cars commerce platforms, such as Marketplace, allowing OEMs and dealers to merchandise their inventory and allowing consumers to add and save vehicles to virtual garage and track the Cars.com market value of current vehicle, as well as provides reputation management technology and digital financing tools and access to in-market consumers who are ready to trade-in its vehicle for a new one. It also provides website creation and platform hosting; digital retailing solutions; and trade and appraisal product, including AccuTrade, uses real-time market data and diagnostic scans to determine the right trade-in offer for every VIN in minutes. In addition, the company offers Cars Commerce Media Network products comprising Cars Social, allows dealers to target and serve native advertisements displaying real-time inventory to in-market car shoppers on Facebook and Instagram; VIN Performance Media, a machine-learning for media campaign, including audience targeting, real-time inventory, and ad placement across search, social, and display; In-Market Video, provides OEMs and dealers to pinpoint serious, ready-to-buy shoppers geographically; and In-Market Display, enable dealers and OEMs to extend reach and access audience of in-market car shoppers. The company serves local dealers, OEMs, dealer groups, and auto-adjacent companies. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
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