Provides car and truck rentals to businesses and consumers. Offers car sharing services through the Zipcar brand. Now — the numbers.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
This company is not turning a profit, so the market is pricing its sales instead: 0.4× for every dollar of annual revenue.
Against companies in its own sector, it looks cheaper than 8% of them.
Analysts' average target sits 6% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
There is growth, but not at top-of-the-class tempo.
Clearly below the class average.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
An investor who bought at the very peak is down 83% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
Our checks did not surface a specific strength to highlight here.
A loss of $889M against $11.7B in annual sales. And on top of that, sales fell from the year before.
At the current pace of spending, the cash lasts less than a year. After that, the company needs to find new money.
Over the last 12 months, executives reported 278 sells against just 78 buys. Not an alarm bell by itself, but a number worth watching.
On our five-subject report card, CAR sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: CAR has solid sales but closed last year at a loss. The road back to profit runs through spending discipline.
Not covered, because the filings we hold do not carry it: the revenue breakdown.