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Auto Trader Group Plc Unsponsored ADR (ATDRY)
OTHER OTC:ATDRY
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Auto Trader Group Plc Unsponsored ADR
(OTC:ATDRY)
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Rating:66Neutral
Price Target:
$2.00
▲(4.17% Upside)
Action:DowngradedDate:12/03/25
Auto Trader Group Plc's strong financial performance and positive earnings call are offset by bearish technical indicators and moderate valuation. The company's strategic focus on AI and digital tools is promising, but market conditions and operational challenges present risks.
Positive Factors
Strong balance sheet and minimal leverage
Extremely low leverage and a high equity ratio give the company durable financial flexibility to weather automotive cycles, fund strategic initiatives, and return capital. A 49.6% ROE indicates efficient capital deployment, supporting long-term shareholder returns and reinvestment capacity.
Robust cash generation and conversion
Strong cash conversion and consistent free cash flow provide a sustainable funding source for dividends, buybacks, and AI/product investment without relying on external financing. High operating cash to net income shows quality of earnings and resilience across market cycles.
High and scalable profitability margins
Very strong margins reflect the scalable digital marketplace model with low incremental costs per listing. High gross and operating margins support structural profitability, enable reinvestment in product (eg. AI tools), and create durable cash returns even if growth moderates.
Negative Factors
Declining consumer services revenue
A persistent decline in private listings reduces a complementary revenue stream and can lower site engagement metrics. If consumer-sourced inventory remains weak, dealer ARPU and long-term marketplace vibrancy could be impaired, constraining sustainable top-line growth.
Autorama operating loss and execution risk
Continued losses at Autorama highlight execution and product-market-fit risk for strategic expansions. Ongoing negative contribution requires management focus and cash to scale or integrate, potentially delaying returns from new initiatives and pressuring near-term margins.
Uncertain supply outlook impacting inventory
Structural supply volatility can reduce dealer listings and advertiser spend, directly limiting core marketplace monetization and growth. Persistent supply uncertainty raises the risk that revenue linked to stock levels and speed-of-sale will underperform over multiple quarters.
Auto Trader Group Plc Unsponsored ADR (ATDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.39B
Dividend Yield2.4%
Average Volume (3M)31.40K
Price to Earnings (P/E)15.2
Beta (1Y)0.32
Revenue Growth7.21%
EPS Growth11.10%
CountryUS
Employees1,296
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,321,153,800
10 Day Avg. Volume50,492
30 Day Avg. Volume31,400
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)11.59
Price to Sales (P/S)10.98
P/FCF Ratio21.95
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue6.66
Enterprise Value/Gross Profit8.66
Enterprise Value/Ebitda10.14
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 DescriptionAuto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. It offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.
How the Company Makes MoneyAuto Trader generates revenue primarily through its advertising services, where automotive dealers pay to list their vehicles on the platform. The company offers various advertising packages that allow dealers to enhance their visibility and attract more potential buyers. Additionally, Auto Trader earns revenue from data services and insights, providing market analysis and trends to automotive retailers. Significant partnerships with car manufacturers and finance providers also contribute to its earnings, as these collaborations often lead to additional advertising opportunities and bundled service offerings.
Auto Trader Group Plc Unsponsored ADR Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a generally positive performance with growth in revenue, profit, and engagement metrics. However, challenges remain, particularly in consumer services revenue and operational integration in Autorama. The strategic focus on AI and digital tools is promising, but market conditions, especially speed of sale and supply dynamics, present ongoing hurdles.Q2-2026 Updates
Positive Updates
Revenue and Profit Growth
Group revenue grew by 5%, operating profit increased by 6%, and basic EPS grew by 11%. Retailer revenue, the largest revenue area, grew by 6%.
Deal Builder Expansion
Deal Builder adoption accelerated, with 4x as many retailers onboarded in this period compared to the previous 6 months. The number of live adverts increased by 25% in one month, reaching 160,000 by the end of October.
AI and Co-Driver Success
Co-Driver AI tools have seen strong engagement with over 10,000 retailers using them. The AI-driven features are contributing to the platform's growth and retailer engagement.
Strong Market Position
Auto Trader maintains over 75% of all time spent across its main competitor set, with monthly visits up 1% to 83.3 million.
Cash Returns to Shareholders
GBP 162.2 million was returned to shareholders through dividends and share buybacks.
Negative Updates
Consumer Services Revenue Decline
Consumer Services revenue decreased by 9% due to fewer private listings compared to the previous year.
Speed of Sale Challenges
Despite improvements, speed of sale was still one day quicker than expected in October, posing a challenge to business models based on slot usage.
Autorama Operating Loss
Autorama reported an operating loss of GBP 1.4 million, despite reducing losses compared to the previous year.
Uncertain Supply Outlook
Supply is improving but remains uncertain, with potential volatility in Q1 of the calendar year impacting stock levels.
Company Guidance
During the call, Auto Trader provided several key financial metrics and operational updates for the six-month period ending September 30, 2025. The company reported a 5% increase in group revenue, with operating profit growing by 6% and basic earnings per share (EPS) rising by 11%. Retailer revenue saw a 6% increase, supported by a 5% rise in average revenue per retailer (ARPR). The company emphasized the successful integration and adoption of AI-powered solutions under the Co-Driver AI umbrella, with over 10,000 retailers utilizing these tools. The Deal Builder feature, now the default experience for retailers and car buyers, saw a fourfold increase in retailer adoption, contributing to a significant rise in engagement. Additionally, Auto Trader announced a 3.8p interim dividend per share and highlighted a robust operating profit margin of 63% for the group. The company's strategic focus remains on leveraging AI and digital retailing to enhance the car buying experience and drive long-term growth.Auto Trader Group Plc Unsponsored ADR Financial Statement Overview
Summary
Auto Trader Group Plc exhibits a robust financial performance with strong revenue and profit growth, high profitability margins, and a solid balance sheet with minimal leverage. Its efficient cash flow generation supports ongoing operations and growth initiatives, positioning the company well within its industry.Income Statement
Auto Trader Group Plc has demonstrated strong revenue growth over the years, with a notable increase of 1.38% in the latest period. The company maintains high profitability margins, with a gross profit margin of 78.97% and a net profit margin of 47.01%. The EBIT and EBITDA margins are also robust at 62.75% and 66.20%, respectively. These metrics indicate efficient operations and strong profitability, positioning the company well within its industry.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.006, indicating minimal leverage. The return on equity is impressive at 49.63%, showcasing effective use of shareholder funds. The equity ratio stands at 89.01%, suggesting a strong equity base relative to total assets. Overall, the company maintains a stable and low-risk financial structure.78
Positive
Cash Flow
The cash flow statement reveals a healthy free cash flow growth rate of 1.00%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is high at 4.99, and the free cash flow to net income ratio is 0.99, both reflecting efficient cash management and conversion of profits into cash. This strong cash flow performance supports the company's operational and strategic initiatives.82
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 615.55M | 601.10M | 570.90M | 500.20M | 432.70M | 262.80M |
| Gross Profit | 473.24M | 474.70M | 450.30M | 347.10M | 425.50M | 256.50M |
| EBITDA | 404.00M | 397.90M | 366.90M | 310.50M | 304.10M | 167.00M |
| Net Income | 293.54M | 282.60M | 256.90M | 233.90M | 244.70M | 127.80M |
Balance Sheet | ||||||
| Total Assets | 698.31M | 639.60M | 658.00M | 662.70M | 542.90M | 534.50M |
| Cash, Cash Equivalents and Short-Term Investments | 20.21M | 15.30M | 18.70M | 16.60M | 51.30M | 45.70M |
| Total Debt | 59.14M | 3.50M | 34.60M | 68.70M | 9.50M | 35.10M |
| Total Liabilities | 133.90M | 70.20M | 105.70M | 135.40M | 70.40M | 75.80M |
| Stockholders Equity | 564.41M | 569.40M | 552.30M | 527.30M | 472.50M | 458.70M |
Cash Flow | ||||||
| Free Cash Flow | 303.74M | 300.60M | 283.70M | 263.40M | 275.40M | 120.30M |
| Operating Cash Flow | 318.71M | 304.60M | 287.50M | 266.80M | 278.20M | 121.70M |
| Investing Cash Flow | -9.70M | 1.60M | 1.80M | -129.60M | -2.80M | -11.40M |
| Financing Cash Flow | -304.30M | -309.60M | -287.20M | -171.90M | -269.80M | -102.20M |
Auto Trader Group Plc Unsponsored ADR Technical Analysis
Negative
1.92
Price Trends
1.82
Negative
2.09
Negative
2.41
Negative
Market Momentum
-0.06
Negative
44.19
Neutral
88.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATDRY, the sentiment is Negative. The current price of 1.92 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.82, and below the 200-day MA of 2.41, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATDRY.
Auto Trader Group Plc Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $10.45B | 485.02 | 0.47% | ― | 15.17% | 75.90% | |
68 Neutral | $2.35B | 11.19 | 5.87% | 0.00% | -5.54% | -14.30% | |
66 Neutral | $5.39B | 15.19 | 50.32% | 2.40% | 7.21% | 11.10% | |
66 Neutral | $2.98B | 20.10 | 34.90% | ― | 4.21% | ― | |
62 Neutral | $10.45B | 483.24 | 0.47% | ― | 15.17% | 75.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
ATDRY
Auto Trader Group Plc Unsponsored ADR
1.62
-0.85
-34.49%
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ATHM
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CARG
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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.