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Auto Trader Group Plc Unsponsored ADR
(OTC:ATDRY)
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Rating:72Outperform
Price Target:
$2.00
▲(22.70% Upside)
Action:Upgraded
Date:05/24/26
The score is driven primarily by strong financial quality (high profitability and robust cash generation) and supportive FY27 guidance with significant buybacks. These positives are tempered by weak technical trend signals (price below major averages with negative momentum) and near-term commercial headwinds noted on the call (retailer churn and paid stock softness). Valuation is reasonable and the dividend adds support.
Positive Factors
Strong cash generation and free cash flow
Auto Trader converts earnings into cash reliably, with operating and free cash flow tracking net income closely. This durable cash generation underpins sustained dividends, sizable buybacks, ongoing product investment and resilience to cyclical swings, supporting long-term capital allocation flexibility.
Negative Factors
Rising leverage and weaker 2026 capital position
A marked increase in debt in 2026 raises financial risk and reduces balance-sheet flexibility. Higher leverage can constrain investment, elevate interest sensitivity, and complicate continued aggressive buybacks/dividends if macro or trading conditions worsen, limiting strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and free cash flow
Auto Trader converts earnings into cash reliably, with operating and free cash flow tracking net income closely. This durable cash generation underpins sustained dividends, sizable buybacks, ongoing product investment and resilience to cyclical swings, supporting long-term capital allocation flexibility.
Read all positive factors
Auto Trader Group Plc Unsponsored ADR (ATDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.53B
Dividend Yield2.12%
Average Volume (3M)31.40K
Price to Earnings (P/E)15.4
Beta (1Y)0.41
Revenue Growth9.11%
EPS Growth13.37%
CountryUS
Employees1,244
SectorGeneral
Sector StrengthN/A
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.09
Shares Outstanding3,132,610,800
10 Day Avg. Volume50,492
30 Day Avg. Volume31,400
Financial Highlights & Ratios
PEG Ratio4.46
Price to Book (P/B)9.71
Price to Sales (P/S)6.23
P/FCF Ratio13.02
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue6.38
Enterprise Value/Gross Profit8.47
Enterprise Value/Ebitda9.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Auto Trader Group Plc Unsponsored ADR Business Overview & Revenue Model
Company Description
Autotrader Group Plc engages in the digital automotive business. It sells cars, bikes, vans, motor homes, caravans, and trucks. It also offers automotive insurance products. It operates through the Auto Trader and Autorama segments. The Auto Trade...
How the Company Makes Money
Auto Trader primarily makes money by charging automotive retailers (e.g., franchised dealers and independent car retailers) subscription and advertising fees to list vehicles and promote their stock on its marketplace. A key revenue stream is reta...
Auto Trader Group Plc Unsponsored ADR Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a mixture of steady top-line and profit growth, strong cash generation, continued product and AI progress, and an active capital return plan, balanced against near-term commercial headwinds: retailer profitability pressures, elevated cancellations, weaker paid stock in H2 and softer Consumer Services. Management provided constructive FY'27 guidance, expects stock and retailer metrics to recover, and outlined product-driven ARPA upside, but acknowledged meaningful operational and cultural challenges that require remediation.Positive Updates
Revenue and Profit Growth
Group revenue increased 4% to GBP 585.3m; Auto Trader operating profit up 4% (Auto Trader op profit cited at GBP 408m) and total group operating profit up 4% to GBP 392.7m. Operating profit margins remained stable (Auto Trader ~70%; group ~63%).
Negative Updates
Retailer Profitability Pressure and Churn
Retailer profitability proved weaker than expected due to new car margin dynamics (ZEV mandate) and government-driven cost increases; higher scrutiny led to profit declines, redundancies and store restructures. Average retailers for the year declined 0.5% to 13,942 and the business ended the year with 460 fewer paying retailers vs. H1 exit; retailer cancellations and higher cancellation levels impacted FY'26 and the run rate into FY'27.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue and Profit Growth
Group revenue increased 4% to GBP 585.3m; Auto Trader operating profit up 4% (Auto Trader op profit cited at GBP 408m) and total group operating profit up 4% to GBP 392.7m. Operating profit margins remained stable (Auto Trader ~70%; group ~63%).
Read all positive updates
Company Guidance
The company guided to group operating profit of GBP 395–415m for FY27, with group operating profit margins (excluding vehicle and accessory sales) expected to be at least maintained and at least high-single-digit EPS growth driven by continued accelerated buybacks; management plans to buy around GBP 500m of shares in the year (having acquired GBP 369.1m / 58.5m shares / 6.6% of issued capital in FY26), will request authority to repurchase up to 15% of issued share capital, and expects net debt to move toward roughly 1x EBITDA. Management expects Auto Trader revenue momentum to improve in H2 as retailer forecourts, paid stock and package penetration recover (average retailer forecourts for the full year still expected to be down c.1–2%), and set out ARPA drivers for FY27 of a packaging (price) event adding GBP 85–95, product growth contributing GBP 65–75, and an improved stock contribution of around minus GBP 30 to minus GBP 40 for the year. Autorama is expected to make a small profit in FY27 with commission and ancillary revenue up c.8–12% and vehicle and accessory sales of ~GBP 40m; the Board reiterated a capital return policy of roughly one-third of net income as dividends (FY26 full‑year dividends up 9% with a final dividend of 7.8p) and reiterated confidence in continuing investment in the business while returning over GBP 1bn to shareholders across FY26 and FY27 combined.Auto Trader Group Plc Unsponsored ADR Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
72
Positive
Cash Flow
85
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 634.45M | 601.10M | 570.90M | 500.20M | 432.70M |
| Gross Profit | 478.25M | 474.70M | 450.30M | 347.10M | 425.50M |
| EBITDA | 418.70M | 397.90M | 366.90M | 310.50M | 304.10M |
| Net Income | 298.68M | 282.60M | 256.90M | 233.90M | 244.70M |
Balance Sheet | |||||
| Total Assets | 685.33M | 639.60M | 658.00M | 662.70M | 542.90M |
| Cash, Cash Equivalents and Short-Term Investments | 18.20M | 15.30M | 18.70M | 16.60M | 51.30M |
| Total Debt | 206.01M | 3.50M | 34.60M | 68.70M | 9.50M |
| Total Liabilities | 278.21M | 70.20M | 105.70M | 135.40M | 70.40M |
| Stockholders Equity | 407.12M | 569.40M | 552.30M | 527.30M | 472.50M |
Cash Flow | |||||
| Free Cash Flow | 303.76M | 300.60M | 283.70M | 263.40M | 275.40M |
| Operating Cash Flow | 331.50M | 304.60M | 287.50M | 266.80M | 278.20M |
| Investing Cash Flow | -23.27M | 1.60M | 1.80M | -129.60M | -2.80M |
| Financing Cash Flow | -305.29M | -309.60M | -287.20M | -171.90M | -269.80M |
Auto Trader Group Plc Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.27B | 23.38 | 56.25% | ― | 5.93% | 310.70% | |
78 Outperform | $2.78B | 6.09 | 5.45% | 8.72% | -11.00% | -28.35% | |
72 Outperform | $5.53B | 15.41 | 60.53% | 2.20% | 9.11% | 13.37% | |
69 Neutral | $7.82B | 132.40 | 1.18% | ― | 16.83% | ― | |
66 Neutral | $7.82B | 132.40 | 1.18% | ― | 16.83% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ATDRY
Auto Trader Group Plc Unsponsored ADR
1.76
-0.96
-35.36%
Z
Zillow Group Class C
33.61
-47.31
-58.47%
ATHM
AutoHome
22.72
-3.02
-11.74%
ZG
Zillow Group Class A
33.95
-43.56
-56.20%
CARG
CarGurus
38.99
9.88
33.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.