Growth For The Quarter Ended 2020-12-31
Cars. com Inc does not report a significant amount of sales growth. It is not beneficial. With that, money managers will appreciate CARS’s gross profit margin of 81%. Last year, the company showed sales of $547. 503 million.
CARS does not report large EBITDA growth. However, the company’s EBITDA ratio is equal to 26%. In my experience, when more investors get to know the financial statistics of CARS, the stock demand will increase. The EBITDA growth is negative because the sales expenditure increased a 1%. I do appreciate that net income grew a 83%. D&A expense diminished a -83%.
Balance Sheet Statement As Of 2020-12-31
With an A/L ratio of more than 1x, CARS’s balance sheet looks stable. In Q4, the total amount of assets was equal to $1075 million, with total liabilities of $735 million. Besides, Cars. com Inc has positive working capital, which shareholders will like. It means that CARS can cover its short-term liabilities when they come due.
CARS’s short term debt is less significant than the company’s cash. In my opinion, Cars. com Inc may not have to worry about any liquidity risk. CARS’s debt to equity ratio is below 2x. In summary, the debt level appears to be under control. Note that Cars. com Inc reports cash and cash equivalents of $67 million, and net debt of $516 million. CARS trades at 31x EBITDA, which may not seem cheap. However, with the company’s EBITDA margin of 26% the EV/EBITDA ratio makes sense. null
Quarterly Figures For The Quarter Ended 2020-12-31
In Q4 CARS reported quarterly sales of $153 million, and gross profit of $125 million. The gross profit margin was equal to 82%. Furthermore, CARS is profitable, which is valuable. Cars. com Inc released positive quarterly EBITDA of $41. 644 million. I do appreciate it. CARS also released positive net income of $7. 219 million. I do appreciate it.
I assume sales of $547 million. So, CARS trades at 2. 361630895173177x forward sales. In my view, it can be justified due to the fact that Cars. com Inc has decent margins. Institutional money managers NINETY ONE UK LTD, BLACKROCK INC. , and GREENVALE CAPITAL LLP are Cars. com Inc investors. The company shows a beta of 2. 15874. It is more large than 1, which means that the stock price can show significant volatility. CARS’s stock price volatility is larger than that of the market. All in all, if you are not a volatility expert don’t trade Cars. com Inc.
The following CARS’s insiders acquired or sold equity recently.CARS’s traders will most likely study this information:
+In 2021-03-03, officer: Chief Legal Officer Rogers James F sold equity of CARS.
+In 2021-03-01, officer: Chief Legal Officer Rogers James F sold stock of CARS.
+In 2021-03-01, officer: Chief Revenue Officer Miller Douglas Neal sold equity of CARS.
About Cars. com Inc
Cars. com, LLC, through its subsidiaries, operates as a digital marketplace, and provides solutions for the automotive industry. Its platform connects car shoppers with sellers and original equipment manufacturers (OEMs) in the United States.