Cars.comLTS:0HTZ 61 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates LTS:0HTZ with a GF Score™ of 61/100 and a GF Value™ of $19.16 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 491 Interactive Media companies, Cars.com ranks better than 99.59% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cars.com's annualized net income for the quarter that ended in Mar. 2026 was $19.9 Mil. Cars.com's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-221.9 Mil. Therefore, Cars.com's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Cars.com's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0HTZ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LTS:0HTZ's Return-on-Tangible-Equity is ranked better than 99.59% of 491
companies
in the Interactive Media industry
Industry Median: 5.8
vs LTS:0HTZ: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Cars.com Return-on-Tangible-Equity Related Terms
Cars.com Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cars.com's Return-on-Tangible-Equity 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, SSTK: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, Cars.com's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Cars.com's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cars.com's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Cars.com (LTS:0HTZ) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cars.com and its competitors. According to the industry distribution chart, Cars.com ranks #2 out of 491 companies in the Interactive Media industry, placing it in the top 0.40000000000001%.
Is Cars.com's Return-on-Tangible-Equity too high?
Cars.com's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Cars.com ranks #2 out of 491 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Cars.com has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cars.com's Return-on-Tangible-Equity compare to NRDS and MAX?
According to the Interactive Media industry distribution chart, Cars.com ranks #2 out of 491 companies for Return-on-Tangible-Equity. This places Cars.com in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.80. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.80, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cars.com and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cars.com's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Possible Value Trap. The stock's GF Value™ is $19.16, compared to a current price of $11.14 — trading 41.8% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Cars.com's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Cars.com (LTS:0HTZ), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Cars.com (LTS:0HTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Cars.com stock appears to be undervalued.
The current stock price of $11.14 is trading 41.8% below its estimated GF Value™ of $19.16.
GuruFocus considers Cars.com to be Possible Value Trap.
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.
61GF Score
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