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Cars.com is being told to profit or sell

Valuation for Cars.com Inc. (CARS) at ROC Hits 0.752263

Taking a deep dive into the Return on Invested Capital (aka ROIC) for Cars.com Inc. (CARS), we see that the number stands at 0.752263. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Cars.com Inc. (CARS) is 1.909161...

https://bucknerbusinessdaily.com/valuation-for-cars-com-inc-cars-at-roc-hits-0-752263/384380/
 
Earnings Preview: Cars.com (CARS) Q1 Earnings Expected to Decline
https://finance.yahoo.com/news/earnings-preview-cars-com-cars-143302827.html?.tsrc=rss

Cars.com (CARS) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2019. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
 

✨ AI Highlights

Cars.com faces shareholder pressure from activist investor Starboard to improve profitability or consider selling the company, prompting a major restructuring that includes approximately 100 layoffs. Forum members criticize Cars.com's historical disconnect from automotive industry expertise and dealer needs, contrasting their performance unfavorably with competitors like CarGurus and Autotrader who have delivered more trackable results. The consensus suggests Cars.com's challenges stem less from market potential and more from internal culture and leadership that underestimated dealer requirements and moved too slowly on innovation.

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