CarGurus’ earnings growth meets a slower dealer count, StockStory says
StockStory cited strong EPS growth and cash flow, while pointing to slower growth in paying dealers as a concern for CarGurus.
Key takeaways
- StockStory reported CarGurus EPS grew at a 35.5% annualized rate over three years.
- Paying dealers rose 5% annually over two years, reaching 34,629 in the latest quarter.
CarGurus’ earnings growth and cash generation are strengths, but slower growth in paying dealers is a concern, according to an Oct. 8 StockStory analysis. The publisher said the shares had fallen 17.4% over six months, while the S&P 500 gained 15.2%.
StockStory reported that CarGurus’ earnings per share grew at a 35.5% compound annual rate over three years, even as revenue declined at an annualized 6.5%. Its free cash flow margin averaged 28.6% over the last two years, the publisher said.
The analysis also noted that paying dealers grew 5% annually over two years, reaching 34,629 in the latest quarter. StockStory said the stock was trading at $28.54 and 7.4 times forward EV/EBITDA when it published its assessment, and judged the positives to outweigh the concern.
This article was produced with the help of AI technology. Source: Yahoo Finance
