CarGurusCARG +2.50%84 Net Margin % is 13.23% as of Mar. 2026, which is 112% above its 10-year median of 6.23. GuruFocus rates CARG with a GF Score™ of 84/100 and a GF Value™ of $40.21 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,326 Vehicles & Parts companies, CarGurus ranks better than 93.67% on this metric.
Net margin is calculated as Net Income divided by its Revenue. CarGurus's Net Income for the
three
months ended in Mar. 2026 was $32.2 Mil. CarGurus's Revenue for the
three
months ended in Mar. 2026 was $243.6 Mil. Therefore, CarGurus's net margin for the quarter that ended in Mar. 2026 was 13.23%.
The historical rank and industry rank for CarGurus's Net Margin % or its related term are showing as below:
CARG'
s Net Margin % Range Over the Past 10 Years
Min: 2.63 Med: 6.23 Max: 17.19
Current: 16.11
CARG's Net Margin % is ranked better than 93.67% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs CARG: 16.11
CarGurus (NAS:CARG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
CarGurus Net Margin % Related Terms
CarGurus Net Margin % Historical Data
* Premium members only.
The historical data trend for CarGurus's Net Margin % 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.
For the Auto & Truck Dealerships subindustry, CarGurus's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's Net Margin % distribution charts can be found below:
* The bar in red indicates where CarGurus's Net Margin % falls into.
* 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.
CarGurus (CARG) has a Net Margin % of 13.23% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on CarGurus and its competitors. This is 112% above median its historical median of 6.23. Over the past decade, CarGurus' Net Margin % has ranged from 2.63 to 17.19. According to the industry distribution chart, CarGurus ranks #84 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 6.3%.
Is CarGurus' Net Margin % too high?
CarGurus' current Net Margin % of 13.23% is 112% above median its 10-year median of 6.23. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 17.19. The Vehicles & Parts industry median Net Margin % is 3.21. CarGurus' value of 13.23% is 312.8% above this industry median. Based on the distribution chart, CarGurus ranks #84 out of 1326 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, CarGurus has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarGurus' Net Margin % compare to SAH and MCW?
According to the Vehicles & Parts industry distribution chart, CarGurus ranks #84 out of 1326 companies for Net Margin %. This places CarGurus in the top 6% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.21. CarGurus' value of 13.23% is 312.8% above this benchmark. Historically, CarGurus' own Net Margin % has ranged from 2.63 to 17.19 over the past decade. While the company's 10-year median is 6.23 vs. the industry median of 3.21, CarGurus has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarGurus's current Net Margin % of 13.23% is 312.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on CarGurus and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarGurus's current Net Margin % is 13.23%, which is 112% above median its own 10-year median of 6.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarGurus stock overvalued right now?
Based on GuruFocus' analysis, CarGurus (CARG) is currently considered Modestly Undervalued. The stock's GF Value™ is $40.21, compared to a current price of $31.20 — trading 22.4% below its estimated fair value. The current Net Margin % is 13.23%, which is 112% above median its 10-year median of 6.23 and 312.8% above the Vehicles & Parts industry median of 3.21. CarGurus' overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For CarGurus (CARG), the current Net Margin % is 13.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CarGurus (CARG) Overvalued in 2026?
Based on GuruFocus' analysis, CarGurus stock appears to be undervalued.
The current stock price of $31.20 is trading 22.4% below its estimated GF Value™ of $40.21.
GuruFocus considers CarGurus to be Modestly Undervalued.
Key valuation signals for CARG:
Net Margin %: 13.23% (112% above median its 10-year median of 6.23)
GF Value™: $40.21 vs. price of $31.20 (22.4% below fair value)
Industry Position: 312.8% above the Vehicles & Parts median (#84 of 1326)
No single metric tells the full story. See the CARG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. It provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listings, through which it offers real-time and historical data analyzing the connections and pricing analysis. 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 segments, namely U.S. Marketplace and Digital Wholesale. It generates maximum revenue from the U.S. Marketplace segment. Geographically, the company derives its key revenue from the United States and the rest from international markets.
84GF Score
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