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Cars.comLTS:0HTZ +16.20%69 Operating Margin % is 15.49% as of Jun. 2026, which is 91% above its 10-year median of 8.09. GuruFocus rates LTS:0HTZ with a GF Score™ of 69/100 and a GF Value™ of $18.31 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 547 Interactive Media companies, Cars.com ranks better than 67.46% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cars.com's Operating Income for the
three
months ended in Jun. 2026 was $27.9 Mil. Cars.com's Revenue for the
three
months ended in Jun. 2026 was $179.9 Mil. Therefore, Cars.com's Operating Margin % for the quarter that ended in Jun. 2026 was 15.49%.
Good Sign:
Cars.com Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Cars.com's Operating Margin % or its related term are showing as below:
LTS:0HTZ'
s Operating Margin % Range Over the Past 10 Years
Min: 5.39 Med: 8.09 Max: 29.25
Current: 11.45
LTS:0HTZ's Operating Margin % is ranked better than 67.46% of 547
companies
in the Interactive Media industry
Industry Median: 3.05
vs LTS:0HTZ: 11.45
Cars.com's 5-Year Average Operating Margin % Growth Rate was 5.30% per year.
Cars.com's Operating Income for the
three
months ended in Jun. 2026 was $27.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was $83.1 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cars.com Operating Margin % Related Terms
Cars.com Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cars.com's Operating 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.
LTS:0HTZ vs NRDS, MAX, NXDR: Operating Margin % Comparison
For the Internet Content & Information subindustry, Cars.com's Operating Margin %, along with its competitors' market caps and Operating 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.
Cars.com Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Cars.com's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cars.com's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cars.com's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Cars.com (LTS:0HTZ) has a Operating Margin % of 15.49% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cars.com and its competitors. This is 91% above median its historical median of 8.09. Over the past decade, Cars.com's Operating Margin % has ranged from 5.39 to 29.25. According to the industry distribution chart, Cars.com ranks #178 out of 547 companies in the Interactive Media industry, placing it in the top 32.5%.
Is Cars.com's Operating Margin % too high?
Cars.com's current Operating Margin % of 15.49% is 91% above median its 10-year median of 8.09. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 29.25. The Interactive Media industry median Operating Margin % is 3.05. Cars.com's value of 15.49% is 407.9% above this industry median. Based on the distribution chart, Cars.com ranks #178 out of 547 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Cars.com has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cars.com's Operating Margin % compare to NRDS and MAX?
According to the Interactive Media industry distribution chart, Cars.com ranks #178 out of 547 companies for Operating Margin %. This puts Cars.com in the upper half of its industry. The industry median Operating Margin % is 3.05. Cars.com's value of 15.49% is 407.9% above this benchmark. Historically, Cars.com's own Operating Margin % has ranged from 5.39 to 29.25 over the past decade. While the company's 10-year median is 8.09 vs. the industry median of 3.05, Cars.com 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 Operating Margin % for an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 3.05, based on 547 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cars.com's current Operating Margin % of 15.49% is 407.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cars.com and its competitors. For the Interactive Media industry, the median Operating Margin % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cars.com's current Operating Margin % is 15.49%, which is 91% above median its own 10-year median of 8.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cars.com stock overvalued right now?
Based on GuruFocus' analysis, Cars.com (LTS:0HTZ) is currently considered Modestly Undervalued. The stock's GF Value™ is $18.31, compared to a current price of $13.27 — trading 27.5% below its estimated fair value. The current Operating Margin % is 15.49%, which is 91% above median its 10-year median of 8.09 and 407.9% above the Interactive Media industry median of 3.05. Cars.com's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cars.com (LTS:0HTZ), the current Operating Margin % is 15.49% as of Jun. 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 Cars.com (LTS:0HTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Cars.com stock appears to be undervalued.
The current stock price of $13.27 is trading 27.5% below its estimated GF Value™ of $18.31.
GuruFocus considers Cars.com to be Modestly Undervalued.
Key valuation signals for LTS:0HTZ:
Operating Margin %: 15.49% (91% above median its 10-year median of 8.09)
GF Value™: $18.31 vs. price of $13.27 (27.5% below fair value)
Industry Position: 407.9% above the Interactive Media median (#178 of 547)
No single metric tells the full story. See the LTS:0HTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cars.com Inc is an audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects consumers to dealerships across the U.S., powering the car-buying experience with artificial intelligence (AI) shopping tools, vehicle reviews and content. Its ecosystem of products enables dealers and OEMs to sell more cars by leveraging the marketplace, dealer websites, trade and appraisal tools and proprietary in-market media solutions. The platform provides shoppers with data, resources and digital tools to make informed buying decisions and connect with automotive retailers. The Company also provides dealerships and OEMs with solutions and data-driven intelligence to reach and influence its 26 million monthly shoppers.
69GF Score
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