CARS Communication Services

Cars.com Inc.

$11.56-1.03%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Communication Services
Industry: Internet Content & Information
Country: United States
Market cap: 618.8M USD
Enterprise value: 960.4M USD
Full-time employees: 1,700

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Drawback: growing more slowly than most peersgrowing more slowly than peers
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.64 vs a peer median of 0.65) and more debt relative to equity (1.01× vs a peer median of 0.37×)higher risk: bigger price swings (beta 1.64 vs peers 0.65) and more debt vs equity (1.01× vs peers 0.37×)
About average: profitability

Ranks #244 of 454 communication services companies (bottom 47%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 19% from December 2022 to August 2026.
Cars.com had 19% fewer shares at August 2026 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Cash flow well above reported profit. Free cash flow is 4.4× reported profit.
Free cash flow is 4.4× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $548M in 2020 to $723M in 2025.
Cars.com's fiscal-year revenue rose in each of the five years to 2025, from $548M to $723M.
More volatile share price. Beta 1.64: tends to move more than the market.
Cars.com's shares have swung more with the market than most peers' (beta 1.64, above the market's 1.0).

StockQuotient Score

49/ 100

Oct 5 49 → Nov 4 49

Valuation

Is the price right?

79/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Share count down 4.2%

Valuation also moves with the share price every day.

Why

Stronger than most peers on:

▲ FCF yield
▲ EBITDA yield
▲ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield5.5%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.88Sector median: 0.0294 · MAD: 0.0294

EBITDA yield15.2%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score 1.02Sector median: 0.0857 · MAD: 0.0649

Free cash flow yield24.2%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 2.83Sector median: 0.0740 · MAD: 0.0593

Other data (not scored)

Book yield71.7%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.4780 · MAD: 0.3375

Growth

Is it growing?

39/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-3.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.41Sector median: 0.0878 · MAD: 0.3126

3-year revenue growth2.8%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.03Sector median: 0.0303 · MAD: 0.0683

Revenue growth1.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.26Sector median: 0.0299 · MAD: 0.0720

Profitability

Does it earn well?

56/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin11.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.41Sector median: 0.0818 · MAD: 0.0789

Return on assets3.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.21Sector median: 0.0272 · MAD: 0.0318

Return on invested capital7.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.24Sector median: 0.0598 · MAD: 0.0706

Other data (not scored)

Gross margin67.1%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.4656 · MAD: 0.1827

Return on equity7.7%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0529 · MAD: 0.1007

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.64

Yahoo Finance · 5-year monthly beta vs the marketOutlier capped at sector 5th/95th percentile33% base weight · Z-score -3.41Sector median: 0.6525 · MAD: 0.2880

Current ratio2.00×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.88Sector median: 1.3848 · MAD: 0.6948

Debt / equity1.01×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.91Sector median: 0.3697 · MAD: 0.3335

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Cars.com

Is Cars.com getting weaker?: Its latest SEC filing (Aug 6, 2026) got stronger: share count down 4.2%. Its overall score is unchanged at 49/100 since Oct 28, 2026.
How is Cars.com valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 79/100 against 512 communication services peers. Free cash flow yield 24.2% vs a peer median of 7.4% (stronger than 87% of peers).Free cash flow yield 24.2% vs peers 7.4% (stronger than 87% of peers).
Is Cars.com growing?: More slowly than most of its peers. Growth scores 39/100 against 512 communication services peers. Earnings per share growth -3.9% vs a peer median of 8.8% (weaker than 61% of peers).Earnings per share growth -3.9% vs peers 8.8% (weaker than 61% of peers).
How profitable is Cars.com?: About as profitable as its peers. Profitability scores 56/100 against 512 communication services peers.
How risky is Cars.com?: Higher risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.00× vs a peer median of 1.38× (stronger than 67% of peers).Current ratio 2.00× vs peers 1.38× (stronger than 67% of peers). Beta 1.64 vs a peer median of 0.65 (weaker than 100% of peers).Beta 1.64 vs peers 0.65 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Share count down 4.2%

	Previous quarter	Latest quarter	Change
Revenue (12 months)	724.4M USD	725.6M USD	+0.2%
Net income (12 months)	27.1M USD	34.3M USD	+26.8%
Operating margin	9.7%	11.4%	+1.7 pts
Free cash flow (12 months)	158.3M USD	149.8M USD	−5.3%
Debt	451.8M USD	447.1M USD	−1.0%
Cash	64.6M USD	33.3M USD	−48.5%
Shares outstanding	55.9M	53.5M	−4.2%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Communication Services · 67 companies

Valuations in Communication Services are within their usual range since 2016.

46% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +13% and earnings +11% (medians): earnings grew faster than prices.
Median price-to-sales is −6% vs the whole market, against a usual −7%.

2016Shaded: most expensive fifth of its range2026

Shown for Communication Services: too few Internet Content & Information companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	7.8%	10.1%	7.9%	7.4%	8.3%	▲ 0.9 pts
Net margin	1.7%	2.6%	17.2%	6.7%	2.8%	▼ 3.9 pts
Return on assets (ROA)	1.1%	1.7%	10.1%	4.3%	1.9%	▼ 2.4 pts
Return on equity (ROE)	2.7%	4.5%	24.1%	9.4%	4.2%	▼ 5.2 pts
Free cash flow margin	21.9%	19.4%	19.7%	20.8%	20.4%	▼ 0.4 pts
Current ratio	1.56×	1.40×	1.22×	1.83×	1.87×	▲ 1.8%
Debt to equity	1.20×	1.25×	1.00×	0.90×	0.96×	▲ 7.1%

CARS price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Drawback: growing more slowly than most peersgrowing more slowly than peers

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.64 vs a peer median of 0.65) and more debt relative to equity (1.01× vs a peer median of 0.37×)higher risk: bigger price swings (beta 1.64 vs peers 0.65) and more debt vs equity (1.01× vs peers 0.37×)

About average: profitability

Ranks #244 of 454 communication services companies (bottom 47%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 19% from December 2022 to August 2026.

Cars.com had 19% fewer shares at August 2026 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.

Cash flow well above reported profit. Free cash flow is 4.4× reported profit.

Free cash flow is 4.4× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $548M in 2020 to $723M in 2025.

Cars.com's fiscal-year revenue rose in each of the five years to 2025, from $548M to $723M.

More volatile share price. Beta 1.64: tends to move more than the market.

Cars.com's shares have swung more with the market than most peers' (beta 1.64, above the market's 1.0).

Questions investors ask about Cars.com

Is Cars.com getting weaker?

Its latest SEC filing (Aug 6, 2026) got stronger: share count down 4.2%. Its overall score is unchanged at 49/100 since Oct 28, 2026.

How is Cars.com valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 79/100 against 512 communication services peers. Free cash flow yield 24.2% vs a peer median of 7.4% (stronger than 87% of peers).Free cash flow yield 24.2% vs peers 7.4% (stronger than 87% of peers).

Is Cars.com growing?

More slowly than most of its peers. Growth scores 39/100 against 512 communication services peers. Earnings per share growth -3.9% vs a peer median of 8.8% (weaker than 61% of peers).Earnings per share growth -3.9% vs peers 8.8% (weaker than 61% of peers).

How profitable is Cars.com?

About as profitable as its peers. Profitability scores 56/100 against 512 communication services peers.

How risky is Cars.com?

Higher risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.00× vs a peer median of 1.38× (stronger than 67% of peers).Current ratio 2.00× vs peers 1.38× (stronger than 67% of peers). Beta 1.64 vs a peer median of 0.65 (weaker than 100% of peers).Beta 1.64 vs peers 0.65 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

724.4M USD

725.6M USD

+0.2%

Net income (12 months)

27.1M USD

34.3M USD

+26.8%

Operating margin

9.7%

11.4%

+1.7 pts

Free cash flow (12 months)

158.3M USD

149.8M USD

−5.3%

Debt

451.8M USD

447.1M USD

−1.0%

Cash

64.6M USD

33.3M USD

−48.5%

Shares outstanding

55.9M

53.5M

−4.2%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

7.8%

10.1%

7.9%

7.4%

8.3%

▲ 0.9 pts

Net margin

1.7%

2.6%

17.2%

6.7%

2.8%

▼ 3.9 pts

Return on assets (ROA)

1.1%

1.7%

10.1%

4.3%

1.9%

▼ 2.4 pts

Return on equity (ROE)

2.7%

4.5%

24.1%

9.4%

4.2%

▼ 5.2 pts

Free cash flow margin

21.9%

19.4%

19.7%

20.8%

20.4%

▼ 0.4 pts

Current ratio

1.56×

1.40×

1.22×

1.83×

1.87×

▲ 1.8%

Debt to equity

1.20×

1.25×

1.00×

0.90×

0.96×

▲ 7.1%