CarGurus, Inc. — Earnings Quality Grade A
CARG · Consumer Cyclical
Strong financial health
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 17 days, change -1 days YoY
AR growth 9.5% vs revenue growth 13.7%
Revenue 13.7%, CFFO 15.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -68.8% vs revenue 13.7%. Normal
SG&A/Gross Profit = 52.6%. Normal
Gross margin 92.8%, change +1.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.89. Profits backed by cash
FCF $0.3B, FCF/NI = 1.71
Accruals ratio = -21.1%. Low accruals
Cash $0.2B covers 100% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 8% of equity. Manageable
Debt/EBITDA = 0.7x. Healthy
Other assets -88.9% vs revenue 13.7%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -3.55 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25