>
Switch to:

CarGurus ROE %

: 21.21% (As of Jun. 2021)
View and export this data going back to 2017. Start your Free Trial

ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. CarGurus's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2021 was $112.2 Mil. CarGurus's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $528.9 Mil. Therefore, CarGurus's annualized ROE % for the quarter that ended in Jun. 2021 was 21.21%.

The historical rank and industry rank for CarGurus's ROE % or its related term are showing as below:

NAS:CARG' s ROE % Range Over the Past 10 Years
Min: -41.96   Med: 13.05   Max: 40.59
Current: 25.5

-41.96
40.59

During the past 6 years, CarGurus's highest ROE % was 40.59%. The lowest was -41.96%. And the median was 13.05%.

NAS:CARG's ROE % is ranked higher than
85% of the 534 Companies
in the Interactive Media industry.

( Industry Median: 3.44 vs. NAS:CARG: 25.50 )

CarGurus ROE % Historical Data

The historical data trend for CarGurus's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CarGurus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Premium Member Only -41.96 7.41 40.59 18.69 24.60

CarGurus Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.94 41.08 28.28 17.73 21.21

Competitive Comparison

For the Internet Content & Information subindustry, CarGurus's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

CarGurus ROE % Distribution

For the Interactive Media industry and Communication Services sector, CarGurus's ROE % distribution charts can be found below:

* The bar in red indicates where CarGurus's ROE % falls into.



CarGurus ROE % Calculation

CarGurus's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=77.553/( (256.855+373.586)/ 2 )
=77.553/315.2205
=24.60 %

CarGurus's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=112.208/( (508.655+549.181)/ 2 )
=112.208/528.918
=21.21 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


CarGurus  (NAS:CARG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=112.208/528.918
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(112.208 / 870.992)*(870.992 / 751.799)*(751.799 / 528.918)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.88 %*1.1585*1.4214
=ROA %*Equity Multiplier
=14.92 %*1.4214
=21.21 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=112.208/528.918
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (112.208 / 154.152) * (154.152 / 153.908) * (153.908 / 870.992) * (870.992 / 751.799) * (751.799 / 528.918)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7279 * 1.0016 * 17.67 % * 1.1585 * 1.4214
=21.21 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


CarGurus ROE % Related Terms

Thank you for viewing the detailed overview of CarGurus's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


CarGurus Business Description

CarGurus logo
Industry
Traded in Other Exchanges
Address
2 Canal Park, 4th Floor, Cambridge, MA, USA, 02141
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listing through which it offers real-time and historical data analyzing the connections and pricing analysis. It also provides all dealers with a web widget to place Deal Rating Badges, which show deal rating. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two geographical segments namely United States and International. Most of the company's revenue comes from the United States.
Executives
Steinert Langley director, 10 percent owner, officer: CEO and Chairman C/O CARGURUS, INC. 2 CANAL PARK, 4TH FLOOR CAMBRIDGE MA 02141
Caputo Thomas Michael officer: Chief Product Officer C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Eldridge Andrea Lee officer: Chief People Officer 50 PEMBERTON STREET CAMBRIDGE MA 02140
Patton Kathleen Bender officer: General Counsel and Secretary 2 CANAL PARK 4TH FLOOR CAMBRIDGE MA 02141
Welch Sarah Amory officer: Chief Marketing Officer C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Zales Samuel officer: COO and President C/O CARGURUS, INC. 2 CANAL PARK, 4TH FL. CAMBRIDGE MA 02141
Lomeli Kyle officer: Chief Technology Officer 120 SYCAMORE STREET BELMONT MA 02478
Schwartz Greg M director C/O ZILLOW GROUP, INC. 1301 SECOND AVENUE, FLOOR 31 SEATTLE WA 98101
Smith Ian G director C/O CARGURUS, INC. 2 CANAL PARK, 4TH FLOOR CAMBRIDGE MA 02141
Parafestas Anastasios director C/O THE BOLLARD GROUP LLC ONE JOY STREET BOSTON MA 02108
Conine Steven director C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Hickok Lori A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HICKOK LORI A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Kaufer Stephen director C/O TRIPADVISOR, INC. 141 NEEDHAM STREET NEWTON MA 02464
Chrzan Oliver Ian officer: Chief Technology Officer 86 WASHINGTON ST. NEWTON MA 02458
Argonaut 22 Llc 10 percent owner 1 JOY STREET BOSTON MA 02108

CarGurus Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)