CarGurus, Inc.
CARG Consumer Cyclical Auto & Truck Dealerships
In the quarter to June 2026, revenue grew 13.1%, EPS grew 139.1% and free cash flow grew 34.3%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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CarGurus, Inc. (CARG) Beneish M-score
CarGurus, Inc.'s Beneish M-score for fiscal 2025 is −3.21; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −3.21 | (0.02) |
| FY2024 | −3.19 | (0.61) |
| FY2023 | −2.58 | 0.33 |
| FY2022 | −2.91 | (5.93) |
| FY2021 | 3.02 | 6.38 |
| FY2020 | −3.35 | (1.50) |
| FY2019 | −1.85 | (3.97) |
| FY2018 | 2.12 | 4.28 |
| FY2017 | −2.16 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.96 | — | 0.89 | |
| Gross margin index | 0.98 | — | 0.52 | |
| Asset quality index | 0.99 | — | 0.40 | |
| Sales growth index | 1.14 | — | 1.01 | |
| Depreciation index | 0.96 | — | 0.11 | |
| SG&A index | 0.95 | — | −0.16 | |
| Total accruals to total assets | (0.15) | — | −0.70 | |
| Leverage index | 1.35 | — | −0.44 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −3.21 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| RUSHB Rush Enterprises, Inc. compare | −3.2× |
| CARG CarGurus, Inc. | −3.2× |
| ACVA ACV Auctions Inc. compare | −2.9× |
| BGSI Boyd Group Services Inc. compare | −2.9× |
| SAH Sonic Automotive, Inc. compare | −2.9× |
| GPI Group 1 Automotive, Inc. compare | −2.7× |
| DRVN Driven Brands Holdings Inc. compare | −2.7× |
| ABG Asbury Automotive Group, Inc. compare | −2.6× |
| VVV Valvoline compare | −2.6× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI