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CarGurus Beneish M-Score

: 0.19 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 0.19 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for CarGurus's Beneish M-Score or its related term are showing as below:

NAS:CARG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4   Med: -1.91   Max: 2.16
Current: 0.19

-3.4
2.16

During the past 6 years, the highest Beneish M-Score of CarGurus was 2.16. The lowest was -3.40. And the median was -1.91.


CarGurus Beneish M-Score Historical Data

The historical data trend for CarGurus's Beneish M-Score 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
Beneish M-Score
Premium Member Only - - 2.16 -2.26 -3.40

CarGurus Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score 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 -2.82 -3.17 -3.40 -1.67 0.19

Competitive Comparison

For the Internet Content & Information subindustry, CarGurus's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Interactive Media industry and Communication Services sector, CarGurus's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CarGurus's Beneish M-Score falls into.



CarGurus Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of CarGurus for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 3.9624+0.528 * 1.0755+0.404 * 1.5671+0.892 * 1.2265+0.115 * 0.5272
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7082+4.679 * -0.125-0.327 * 0.8078
=0.19

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $81.9 Mil.
Revenue was 217.748 + 171.368 + 151.553 + 147.472 = $688.1 Mil.
Gross Profit was 167.431 + 147.31 + 140.099 + 137.71 = $592.6 Mil.
Total Current Assets was $388.8 Mil.
Total Assets was $784.2 Mil.
Property, Plant and Equipment(Net PPE) was $98.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General, & Admin. Expense(SGA) was $337.9 Mil.
Total Current Liabilities was $103.5 Mil.
Long-Term Debt & Capital Lease Obligation was $64.7 Mil.
Net Income was 28.052 + 19.551 + 25.163 + 32.563 = $105.3 Mil.
Non Operating Income was 0.061 + 0.222 + -0.075 + 0.031 = $0.2 Mil.
Cash Flow from Operations was 37.473 + 43.862 + 47.937 + 73.878 = $203.2 Mil.
Accounts Receivable was $16.8 Mil.
Revenue was 94.737 + 157.689 + 158.153 + 150.462 = $561.0 Mil.
Gross Profit was 84.857 + 146.079 + 147.593 + 141.07 = $519.6 Mil.
Total Current Assets was $216.1 Mil.
Total Assets was $407.4 Mil.
Property, Plant and Equipment(Net PPE) was $93.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.6 Mil.
Selling, General, & Admin. Expense(SGA) was $389.1 Mil.
Total Current Liabilities was $43.1 Mil.
Long-Term Debt & Capital Lease Obligation was $65.1 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(81.863 / 688.141) / (16.844 / 561.041)
=0.11896254 / 0.03002276
=3.9624

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(519.599 / 561.041) / (592.55 / 688.141)
=0.92613374 / 0.86108806
=1.0755

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (388.776 + 98.665) / 784.205) / (1 - (216.081 + 92.967) / 407.436)
=0.37842656 / 0.24148087
=1.5671

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=688.141 / 561.041
=1.2265

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(10.623 / (10.623 + 92.967)) / (23.826 / (23.826 + 98.665))
=0.10254851 / 0.19451225
=0.5272

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(337.939 / 688.141) / (389.069 / 561.041)
=0.49108976 / 0.69347695
=0.7082

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((64.723 + 103.547) / 784.205) / ((65.073 + 43.147) / 407.436)
=0.214574 / 0.26561227
=0.8078

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(105.329 - 0.239 - 203.15) / 784.205
=-0.125

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

CarGurus has a M-score of 0.19 signals that the company is likely to be a manipulator.


CarGurus Beneish M-Score Related Terms

Thank you for viewing the detailed overview of CarGurus's Beneish M-Score 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

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