CARSCars.com Inc.

$10.95+3.2% 1Y

Is it safe?

Mixed

Nothing alarming, nothing pristine: comfortable debt (A) and big price swings.

1 to watch, 1 neutral, 4 without data
Credit gradeAderived · Jun 30, 2026

Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.

Drawdown risk48% volderived · Oct 23, 2026

Large price swings, high volatility. Worst drawdown -89% · now 19% below its 52-week high.

Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.

Can CARS take a bad year?

Cars.com Inc. carries $414M of net debt at 2.63× EBITDA: a load its earnings can carry.

$414M

Net debt · as at Q2 2026 · between two and four years of EBITDA, normal for a stable business

Net debt / EBITDA
2.63×

Net debt / EBITDA · 2.73× a year ago · the load is coming down

Debt / equity
1.01×

Debt / equity

Annualised volatility
48%

Annualised volatility · S&P 500 16% · about 3 times the market's own swing

Details›
Total debtQ2 2026
$447M
Cash and short-term investments
$33M
Net debt
$414M
EBITDA, trailing twelve months
$157M
Operating profit, trailing twelve months
$83M
Debt / equity
1.01×
Total debt / EBITDA
2.85×
Annualised volatilitytwo years of daily moves
48%
Worst drawdown on file
−89%
Below its 52-week high
19%

Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.

The balance sheet

What it owes against what it owns, and how close that comes to trouble.

How far can it fall?

How much the price moves, how deep and how long its falls have run, and what each unit of risk has paid.