CARGCarGurus, Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.5×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 53% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CARG?
CarGurus, Inc. keeps 29% of every revenue dollar as operating profit, against 5.1% for the median Auto & Truck Dealerships name.
Operating margin · Auto & Truck Dealerships median 5.1% · 12 months to Q2 2026
- Cash conversion
- 1.50×
Cash conversion · 1.05× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −9.1%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 15%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 18% |
| FY2021 | 16% |
| FY2022 | 6.6% |
| FY2023 | 17% |
| FY2024 | 20% |
| FY2025 | 27% |
Details›
- Gross margin12 months to Q2 2026
- 92%
- Operating margin12 months to Q2 2026
- 29%
- Net margin12 months to Q2 2026
- 18%
- Free cash flow margin
- 33%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $967M
- Free cash flow, trailing twelve months
- $315M
- Net income, trailing twelve months
- $176M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.