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Cars.com

CARS
59
Internet Content & Information · Communication Services
Also trades as: 0HTZ.L GBP 0.11 (+1.04%)
Price
$10.70
-0.21 (-1.92%)
Market Cap
$598.2M
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 23, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
19/30
Growth
Weak
4/20
Cash Flow
Exceptional
10/10
Stability
Good
5/10
Valuation
Strong
8/10
Ownership
Good
10/15
Dividends
Not counted
n/a

56 of 95 counted points = Winston Score 59. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−13.5% over 4y

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

Diluted shares outstanding: 71.3M (2021) → 61.7M (2025)

§Winston Score History

The full picture

Cars.com is an online marketplace that connects car buyers with car dealerships across the United States. Its main product is a website and app where people can search for new and used vehicles, read reviews, and compare prices. The company also owns the Dealer Inspire brand, which builds websites and digital marketing tools for auto dealers.

Cars.com makes money by charging dealerships subscription and advertising fees to list their inventory and reach potential buyers. It operates almost entirely in the United States and generates roughly $700 million in annual revenue. Its moat comes from its established brand and the large volume of car listings it hosts, which attracts buyers and keeps dealers paying for visibility. The main risk is competition from larger platforms like CarGurus, AutoTrader, and increasingly from automakers and dealers building their own direct digital channels, which could pressure pricing and dealer retention over time.

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on CARS in the last 12 months.

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Growth Profile

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

Revenue Growth

+0.7% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

+136.4% YoY

Quarterly reporting periods ended:

30 Jun 2025: $0.11

30 Jun 2026: $0.26

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

15.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$65M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth context

Cars.com is growing revenue at 1% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
83.2%
Premium pricing power — 83.2% gross margin
Profit after running costs
Operating Margin
15.5%
Healthy — 15.5% operating margin
Return on the money invested
ROCE
9.3%
Below par — 9.3% 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 growth
Sales YoY
+1.1%
Nearly flat sales (+1.1% YoY)
Profit growth
EPS YoY
-7.0%
Earnings shrinking (-7.0% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
442%
Turns 442% of profit into real cash
Spare cash per sale
FCF Margin
20.6%
Converts sales into free cash efficiently (20.6%)

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

What it owes vs what it owns
Debt / Equity
1.01
Elevated debt (1.01)
Covers its interest
Interest Cover
5.45x
Adequate interest coverage (5.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.3x
Fair value — P/E 18.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+14.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.3 → 3.9)

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Dividends

Not applicable for this business.
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