Cars.comCARS +4.88%69 ROE % is 4.27% as of Mar. 2026, which is 1% above its 10-year median of 4.24. GuruFocus rates CARS with a GF Score™ of 69/100 and a GF Value™ of $19.43 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 534 Interactive Media companies, Cars.com ranks better than 58.43% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cars.com's annualized net income for the quarter that ended in Mar. 2026 was $19.9 Mil. Cars.com's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $466.6 Mil. Therefore, Cars.com's annualized ROE % for the quarter that ended in Mar. 2026 was 4.27%.
The historical rank and industry rank for Cars.com's ROE % or its related term are showing as below:
CARS'
s ROE % Range Over the Past 10 Years
Min: -110.33 Med: 4.24 Max: 27.02
Current: 5.67
During the past 13 years, Cars.com's highest ROE % was 27.02%. The lowest was -110.33%. And the median was 4.24%.
CARS's ROE % is ranked better than 58.43% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs CARS: 5.67
Cars.com (NYSE:CARS) 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:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income 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.
Cars.com ROE % Related Terms
Cars.com ROE % Historical Data
* Premium members only.
The historical data trend for Cars.com'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.
For the Internet Content & Information subindustry, Cars.com'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.
Cars.com ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Cars.com's ROE % distribution charts can be found below:
* The bar in red indicates where Cars.com's ROE % 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 ROE %, the net income 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 data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Cars.com (CARS) has a ROE % of 4.27% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cars.com and its competitors. This is near median its historical median of 4.24. According to the industry distribution chart, Cars.com ranks #222 out of 534 companies in the Interactive Media industry, placing it in the top 41.6%.
Is Cars.com's ROE % too high?
Cars.com's current ROE % of 4.27% is near median its 10-year median of 4.24. The Interactive Media industry median ROE % is 2.35. Cars.com's value of 4.27% is 82.1% above this industry median. Based on the distribution chart, Cars.com ranks #222 out of 534 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 Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cars.com's ROE % compare to NRDS and SSTK?
According to the Interactive Media industry distribution chart, Cars.com ranks #222 out of 534 companies for ROE %. This puts Cars.com in the upper half of its industry. The industry median ROE % is 2.35. Cars.com's value of 4.27% is 82.1% above this benchmark. While the company's 10-year median is 4.24 vs. the industry median of 2.35, 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cars.com's current ROE % of 4.27% is 82.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cars.com and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cars.com's current ROE % is 4.27%, which is near median its own 10-year median of 4.24. 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 (CARS) is currently considered Possible Value Trap. The stock's GF Value™ is $19.43, compared to a current price of $10.32 — trading 46.9% below its estimated fair value. The current ROE % is 4.27%, which is near median its 10-year median of 4.24 and 82.1% above the Interactive Media industry median of 2.35. Cars.com's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Cars.com (CARS), the current ROE % is 4.27% 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 (CARS) Overvalued in 2026?
Based on GuruFocus' analysis, Cars.com stock appears to be undervalued.
The current stock price of $10.32 is trading 46.9% below its estimated GF Value™ of $19.43.
GuruFocus considers Cars.com to be Possible Value Trap.
Key valuation signals for CARS:
ROE %: 4.27% (near median its 10-year median of 4.24)
GF Value™: $19.43 vs. price of $10.32 (46.9% below fair value)
Industry Position: 82.1% above the Interactive Media median (#222 of 534)
No single metric tells the full story. See the CARS 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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