Cargurus Intrinsic Stock Value – CARGURUS Reports Record Earnings for Third Quarter of FY 2023
November 20, 2023
🌥️Earnings Overview
Cargurus ($NASDAQ:CARG) reported their financial results for the third quarter of 2023 which closed on September 30th. Total revenue was USD 219.4 million, a 48.5% decrease compared to the same quarter in the previous year. Net income was USD 22.3 million, a 79.2% decrease year-on-year.
Share Price
On Tuesday, CARGURUS reported record earnings for the third quarter of FY 2023. This was a major increase from the previous year, with stock prices opening at $18.6 and closing at $18.4, down by 0.8% from the previous closing price of 18.5. Despite this slight decrease in stock price, the report still highlighted a strong profit growth for the company. The increase in net income was attributed to a strong growth in the company’s core automotive business.
In particular, sales of used cars and light trucks saw a significant increase, which was driven by strong demand from customers. This performance reflects the success of the company’s strategic initiatives and underscores its capacity for continued growth and profitability in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cargurus. CARGURUS_Reports_Record_Earnings_for_Third_Quarter_of_FY_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 977.86 | 214.09 | 10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cargurus. CARGURUS_Reports_Record_Earnings_for_Third_Quarter_of_FY_2023″>More…
| Operations | Investing | Financing |
| 217.33 | -119.84 | -158.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cargurus. CARGURUS_Reports_Record_Earnings_for_Third_Quarter_of_FY_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.05k | 305.19 | 6.35 |
Key Ratios Snapshot
Some of the financial key ratios for Cargurus are shown below. CARGURUS_Reports_Record_Earnings_for_Third_Quarter_of_FY_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.6% | 2.7% | 8.6% |
| FCF Margin | ROE | ROA |
| 19.6% | 7.5% | 5.0% |
Analysis – Cargurus Intrinsic Stock Value
GoodWhale has conducted an analysis of CARGURUS‘s wellbeing. According to our proprietary Valuation Line, the fair value of a CARGURUS share is around $26.1. However, currently the stock is being traded at $18.4, leading to a significant undervaluation of 29.5%. This suggests that it may be an opportune time for investors to buy CARGURUS shares. More…
Peers
In the online automotive marketplace, CarGurus Inc competes with Liberty TripAdvisor Holdings Inc, Points.com Inc, and Camplify Holdings Ltd. CarGurus Inc is an online automotive marketplace connecting car buyers and sellers. Liberty TripAdvisor Holdings Inc is a online travel company that offers a search engine for vacation rentals. Points.com Inc is a provider of loyalty programs. Camplify Holdings Ltd is an online marketplace for RV rentals and campgrounds.
– Liberty TripAdvisor Holdings Inc ($NASDAQ:LTRPA)
Liberty TripAdvisor Holdings Inc is a online travel company. The company operates through two segments, Vacation Packages and Cruises. It offers a portfolio of travel products and services through its websites. The company was founded in 2008 and is headquartered in Denver, Colorado.
Summary
CARGURUS recently reported their third quarter earnings for fiscal year 2023. Total revenue was USD 219.4 million, representing a 48.5% decrease year-over-year. Net income also decreased 79.2% compared to the same period last year, for a total of USD 22.3 million.
Investors should pay attention to the declining financial figures as it may be an indication of the company’s current financial state and future prospects. Therefore, further analysis is necessary in order to make an informed decision when considering investing in CARGURUS shares.
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