CARG

Consumer Cyclical

CarGurus, Inc. · Auto - Dealerships · $3B

UQS Score — Balanced Preset
12.5
Poor

CarGurus, Inc. scores 12.5/100 using the Balanced preset.

UQS vs Consumer Cyclical Sector
CARG
12.5
Sector avg
37.7
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Weak
Valuation
Elevated

What is CarGurus, Inc.?

CarGurus operates one of the largest online automotive marketplaces in the United States, connecting car shoppers with dealers through data-driven listings and digital tools.

CarGurus generates revenue through dealer subscriptions, advertising products, and digital wholesale services. Its platform lets consumers search new and used vehicle listings, get financing pre-qualification, and sell cars directly to dealers. The Digital Wholesale segment connects dealers to inventory sourcing tools, broadening CarGurus beyond a pure consumer marketplace.

The company was incorporated in 2017 and is headquartered in Boston, Massachusetts.

  • Online automotive marketplace with new and used car listings
  • Digital Deal and Finance in Advance consumer tools
  • Sell My Car — Instant Max Cash Offer and Top Dealer Offers
  • Autolist and PistonHeads marketplace platforms

Is CARG a Good Stock to Buy?

UQS Score rates CARG as Good overall.

CarGurus shows Strong Quality fundamentals, suggesting the business generates healthy returns relative to its cost structure. The Valuation pillar is rated Attractive, meaning the stock appears reasonably priced compared to sector peers. Risk is rated Good, reflecting a relatively stable financial profile.

The Moat pillar is rated Weak, indicating limited structural competitive advantages that could make long-term market share difficult to defend.

See the exact pillar breakdown and full financial metrics by signing up for a Pro account at UQS Score. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does CARG pay dividends?

No — CarGurus, Inc. does not currently pay a dividend.

CarGurus does not currently pay a dividend. As a growth-oriented technology platform, the company reinvests available capital into product development, marketplace expansion, and its digital wholesale business rather than returning cash to shareholders through distributions.

When does CARG report earnings?

CarGurus reports earnings on a quarterly cadence, consistent with standard US-listed equity practice.

The company's Quality pillar rating suggests its underlying financials have held up relative to consumer cyclical peers. Growth is rated Neutral, reflecting a business navigating a transitional phase in both its marketplace and wholesale segments.

For the most recent quarter's results, visit CarGurus' investor relations page directly.

CARG Price History

+4.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in CarGurus, Inc.?

$
Today it would be worth
$12,746
That's a +27.5% total return, or +5.0% annualized.

Based on CarGurus, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does CarGurus do?

CarGurus runs an online automotive marketplace where consumers can search new and used vehicle listings, arrange financing, and sell their cars to dealers. It also operates a digital wholesale segment that helps dealers source inventory, along with platforms like Autolist and PistonHeads.

Does CARG pay dividends?

No, CarGurus does not currently pay a dividend. The company reinvests capital into growing its marketplace and digital wholesale operations rather than distributing cash to shareholders.

When does CARG report earnings?

CarGurus reports on a quarterly basis, in line with most US-listed companies. For exact dates and the latest results, check the investor relations section of the CarGurus website.

Is CARG a good stock to buy?

UQS Score rates CARG as Good, with Strong Quality and an Attractive Valuation. The Moat pillar is Weak, which is worth considering. The complete pillar breakdown is available to Pro members at UQS Score.

Is CARG overvalued?

The UQS Valuation pillar for CARG is rated Attractive, suggesting the stock is not considered expensive relative to sector peers based on the composite scoring methodology. Full valuation metrics are available to Pro members.

What is CARG's market cap bracket?

CarGurus is classified as a mid-cap company, placing it between smaller growth-stage platforms and the large-cap automotive retail and technology giants in the consumer cyclical sector.

Is CARG a long-term quality indicator?

The UQS framework evaluates long-term quality through five pillars. CARG's Strong Quality and Good Risk ratings are positive signals, while the Weak Moat rating suggests investors should monitor competitive dynamics over a longer horizon. Pro members can view the full analysis.

What sector does CARG belong to?

CarGurus is classified in the Consumer Cyclical sector. Its business is tied to vehicle demand trends, making it sensitive to broader economic conditions and consumer spending on big-ticket purchases like cars.

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Pro Analysis

CARG — Score History

15304560Jul 11Jul 29Aug 16Sep 3Sep 21Oct 8
Score changes· 13 most recent
DateUQSQualityMoatGrowthRiskValueChange
Sep 1, 202612.50.028.00.036.90.0-48.9
Jul 31, 202661.491.728.055.551.683.9-0.5
Jul 25, 202661.991.728.055.551.687.8-0.1
Jul 24, 202662.091.728.055.551.688.3+0.1
Jul 23, 202661.991.728.055.551.687.4+0.3
Jul 22, 202661.691.728.055.551.685.70.0
Jul 21, 202661.691.728.055.551.685.6-0.1
Jul 18, 202661.791.728.055.551.686.1+0.2
Jul 16, 202661.591.728.055.551.685.0-0.3
Jul 15, 202661.891.728.055.551.687.0-0.1

CARG — Pillar Breakdown

◆

Quality

— 0.0/100 (25%)

CarGurus, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Cash GenerationWeak

Free cash flow relative to market value.

▲

Growth

— 0.0/100 (20%)

CarGurus, Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

◈

Risk

— 36.9/100 (15%)

CarGurus, Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

●

Valuation

— 0.0/100 (15%)

CarGurus, Inc. appears expensively valued relative to its fundamentals and growth prospects.

⬡

Moat

— 28/100 (25%)

CarGurus, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CARG.

Score Composition

Quality
0.0×25%0.0
Growth
0.0×20%0.0
Risk
36.9×15%5.5
Valuation
0.0×15%0.0
Moat
28.0×25%7.0
Total
12.5Poor

Financial Data

More Stock Analysis

How is the CARG UQS Score Calculated?

The UQS (Unified Quality Score) for CarGurus, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses CarGurus, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether CarGurus, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.