Cars.com Inc. (CARS) Stock

Cars.com Inc. (CARS) is a Technology stock trading at $12.27 (as of 2026-08-20), with a market capitalization of $656.85M and a trailing P/E of 20.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Cars.com Inc. operates a digital marketplace and related automotive software and advertising offerings that connect vehicle shoppers with dealers and sellers. It provides dealer-facing and OEM-facing marketplace products, digital website and retailing tools, and advertising services, serving franchise and independent dealers and automotive manufacturers in the United States.

Understand Cars.com Inc.: how it makes money

Cars.com runs a digital automotive marketplace that connects car shoppers with dealers and sellers, and it makes money largely by selling subscription advertising and other digital products to dealers, plus smaller amounts from OEM and national revenue.

Profit is driven primarily by recurring dealer monetization, where growth and pricing power depend on how many dealers are customers and how deeply they buy into higher tier marketplace subscriptions.

Revenue by segment (latest quarter)
Dealer$0.2B
OEM & National$0.0B
Other$0.0B

Business quality (Weak): The company appears to monetize a large dealer network through dealer subscriptions and related marketplace products, with profitability (operating margin 9.2%) likely tied to retention and tier mix rather than one-time fees.

Valuation: Trades at 22× trailing earnings · $1B market cap.

Bull case

  • Large dealer base supports recurring revenue: Dealer Customers (Ending) were 19,390, indicating broad participation by dealers on the platform.
  • Dealer tier mix suggests monetization depth: Higher Tier Premium and Preferred Marketplace Penetration Rate was 75%, and Premium Plus Subscriber Penetration was 7% as of the latest quarter.

Bear case

  • Revenue concentration risk toward dealer subscriptions: Dealer Revenue is the dominant revenue line in the segment data, so changes in dealer spending or retention could have an outsized impact.
  • Potential upsell limits at the top tier: Premium Plus Subscriber Penetration is 7%, so expansion beyond current tiers may be slower if dealers do not move up.
  • Traffic source mix could affect demand generation: Organic Traffic Mix Percentage was 60% and organic-driven discovery may be sensitive to changes in search behavior and ranking.
Valuation — source: SEC EDGAR (first-party)
Price$12.27
Market Cap$656.85M
P/E Ratio20.6
EV / EBITDA7.0
Price / Book1.48
Price / Sales0.91
FCF Yield37.2%
DCF Value (model)$39.29
DCF Upside vs Price220.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$723.24M
Net Margin2.8%
Revenue Growth (YoY)0.6%
EPS Growth (YoY)-56.2%
FCF Growth (YoY)-1.5%
Financial Health — source: SEC EDGAR
Altman Z-Score0.47 (distress)
Valuation vs Sector & Industry
Stock P/E20.6
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
vs Sector-39.3%
vs Industry-31.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderFMR LLC ($71.41M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEOTobias Hartmann
Employees1,800
CountryUS
IPO Date2017-06-01

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CARS earnings history · CARS institutional & insider holders · CARS KPIs & operating metrics · CARS financials · CARS investor presentations & press releases · CARS SEC filings · CARS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.