We assess the Impact Of The Covid-19 Recession On Cars.com in an interactive dashboard with a focus on its cash flow generation ability. In a scenario where annual revenue falls 30%, Cars.com can still generate $134 million of free cash flow post capital expenditures. Thankfully, Cars.com is fairly strong from a financial stand point implying that it could be a good investment now if investors are willing to wait. In 2019, Cars.com Inc. generated $-445 mil in net income on a revenue base of $607 mil. Despite this accounting loss, it managed to generate $101 mil in free cash flow from operations, and was cash flow positive even after accounting for capital expenditures and shareholder returns.

Source: Forbes July 15, 2020 17:15 UTC