carsales.com Ltd
carsales.com Ltd Fundamental Analysis
carsales.com Ltd (CSXXY) shows moderate financial fundamentals with a PE ratio of 28.68, profit margin of 24.02%, and ROE of 10.10%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 7.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CSXXY's fundamental strength across five key dimensions:
Efficiency Score
WeakCSXXY struggles to generate sufficient returns from assets.
Valuation Score
WeakCSXXY trades at a premium to fair value.
Growth Score
ExcellentCSXXY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCSXXY maintains a strong and stable balance sheet.
Profitability Score
ModerateCSXXY maintains healthy but balanced margins.
Key Financial Metrics
Is CSXXY Expensive or Cheap?
P/E Ratio
CSXXY trades at 28.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CSXXY's PEG of 3.73 indicates potential overvaluation.
Price to Book
The market values carsales.com Ltd at 2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.71 times EBITDA. This signals the market has high growth expectations.
How Well Does CSXXY Make Money?
Net Profit Margin
For every $100 in sales, carsales.com Ltd keeps $24.02 as profit after all expenses.
Operating Margin
Core operations generate 38.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.10 in profit for every $100 of shareholder equity.
ROA
carsales.com Ltd generates $6.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
carsales.com Ltd generates strong operating cash flow of $504.15M, reflecting robust business health.
Free Cash Flow
carsales.com Ltd generates strong free cash flow of $495.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.62 in free cash annually.
FCF Yield
CSXXY converts 5.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CSXXY Stacks Against Its Sector Peers
| Metric | CSXXY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.68 | 22.05 | Worse (Expensive) |
| ROE | 10.10% | 1173.00% | Weak |
| Net Margin | 24.02% | -64583.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 1.36 | Strong (Low Leverage) |
| Current Ratio | 1.92 | 1.58 | Neutral |
| ROA | 6.12% | -200331.00% (disorted) | Weak |
CSXXY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews carsales.com Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.47%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
64.34%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
126.30%
Industry Style: Growth, Technology, Streaming
High Growth