AutoWeb, Inc.: Gathering momentum, can it sustain its performance?

AutoWeb, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 81.

Our analysis is based on comparing AutoWeb, Inc. with the following peers – Insignia Systems, Inc., TrueCar, Inc. and SPAR Group, Inc. (ISIG-US, TRUE-US and SGRP-US).

AutoWeb, Inc. has shown underwhelming performance over the last one year while growing strongly over the last month. AutoWeb, Inc.’s price momentum over the last month, at 5.78% has been better than that over the last year, which was -53.30%. Also from a peer group perspective, AutoWeb, Inc. has performed better, since the peer group performance was 3.30% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It trades at a lower Price/Book multiple (0.76) than its peer median (1.13).
  • We classify AUTO-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • AUTO-US has relatively high profit margins while operating with median asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • AUTO-US’s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • While AUTO-US’s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • AUTO-US has the financial and operating capacity to borrow quickly.
  • Our analysis rates AutoWeb, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

AUTO-US’s share price performance of -53.30% over the last 12 months is below its peer median but its 30-day trend in share price performance of 5.78% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

AutoWeb, Inc.’s price of USD 7.50 is lower than CapitalCube’s implied price of USD 13.97. CapitalCube believes that at these levels, AutoWeb, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 6.63 and USD 15.28.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

AutoWeb, Inc. provides high quality consumer leads and associated marketing services to automotive dealers and manufacturers throughout the United States. It also provides consumers with robust and original online automotive content to help them make informed car-buying decisions. AutoWeb was founded by John C. Bedrosian and Peter R. Ellis and in January 1995 and is headquartered in Irvine, CA.

Disclaimer

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