CarGurus

CARG

Auto - Dealerships · Consumer Cyclical

Price

$35.00

-1.02 (-2.83%)

Market Cap

$3.38B

Exchange

NASDAQ

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Share count falling — buybacks

−17.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 117.1M (2021) → 96.8M (2025)

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

Winston Score History

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on CARG in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-10.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$156M/ year

↑ Rising (+8% vs prior year)

16.6% of revenue

4.1x the sector average (4%)

Investing heavily in future products and technology

Insider Activity

23.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$72M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

CarGurus is putting 17% of revenue into R&D and that number is rising. That's 4.1x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

92.2%

Premium pricing power — 92.2% gross margin

Operating Margin

24.3%

Excellent — 24.3% operating margin

ROCE

13.9%

Good — 13.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+5.9%

Slow sales growth (5.9% YoY)

EPS YoY

+307.9%

Earnings growing fast (307.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

199%

Turns 199% of profit into real cash

FCF Margin

29.3%

Converts sales into free cash efficiently (29.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.79

Moderate — manageable debt (0.79)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

22.6x

Growth-priced — P/E 22.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+12.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.6 → 10.4)

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Dividends

Not applicable for this business.

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