CARSCars.com Inc.
Services-Computer Processing & Data Preparation
- Revenue
- $723M
- 0.6% YoY
- Operating margin
- 8.3%
- 12% YoY
- EBITDA
- $152M
- 5.3% YoY
- Market cap
- $606M
- Employees
- —
- Net debt / EBITDA
- 2.8×
- $422M net debt
- AI in 10-K
- 7.3
- mentions per 10K words
Takeover score 1 of 13
Fixable underperformance 0 of 7
- TSR below peersNo1 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$7M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo754% of net incomeCash flow under 80% of net income
- Dilutive SBCNo4% of revenueOver 10% of revenue
- Payouts exceed cash flowNo57% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo16% of assetsOver 40% of assets
- Shareholder dissentNo94% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo—Bottom quartile of its SIC industry
- Quiet on AINo7.3 per 10K words · 88th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo2.8× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedYes$606M market capMarket cap $500M–$5B
Catalysts 0 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingNo−$2M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $624M | $654M | $689M | $719M | $723M | 0.6% |
| Operating income | $48M | $66M | $54M | $53M | $60M | 13% |
| Net income | $11M | $17M | $118M | $48M | $20M | 58% |
| Operating cash flow | $138M | $129M | $137M | $153M | $152M | 0.6% |
| Capex | $1M | $2M | $1M | $3M | $4M | 43% |
| Stock-based comp | $21M | $22M | $28M | $31M | $31M | 2.5% |
| Buybacks | $0 | $49M | $31M | $49M | $87M | 77% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Aug 7, 2019 | Starboard Value LP | SC 13D/A | 2.0% | Active |
Insider trading
- Open-market buys, 12 mo
- $15K · 1
- Open-market sells, 12 mo
- $2M · 6
- Net
- −$2M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $7M | −$483K | 108 | 138 |
| FY2024 | $10M | $2M | 153 | 115 |
| FY2023 | $7M | $6M | 168 | 87 |
| FY2022 | $6M | −$2M | 122 | 59 |
| FY2021 | $7M | $9M | 142 | 98 |