Eagers Automotive Limited (APE) AI Stock Analysis

• Market Cap: AU$7.16B
• Dividend Yield: 2.9%
• Average Volume (3M): 675.44K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.07
• Revenue Growth: 16.46%
• EPS Growth: -20.08%
• Country: AU
• Employees: 8,537
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.47
• Shares Outstanding: 282,364,350
• 10 Day Avg. Volume: 934,091
• 30 Day Avg. Volume: 675,436
• PEG Ratio: -0.53
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 13.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$32.20
• Price Target Upside: 27.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: AU$27.00 ▲(6.51% Upside)

Eagers Automotive Limited's strong financial performance, characterized by revenue growth and profitability, is a key strength. However, high leverage and cash flow management issues pose risks. Technical indicators provide mixed signals, and the stock's valuation appears high, which tempers the overall score.

Positive Factors

Diversified revenue model

A multi-stream dealership model—new and used vehicle sales, aftersales, finance and ancillary income—provides structural diversification of revenue and cash flows. This reduces reliance on new-vehicle cycles and supports stable multi-year earnings and cross‑sell opportunities across the installed vehicle base.

Consistent revenue growth and improving EBIT

Sustained top-line growth with a notable improvement in EBIT margin indicates the company is converting scale into operating leverage. Over a 2–6 month horizon this suggests durable margin resilience from volume and operational efficiencies, underpinning future reinvestment capacity and competitive positioning.

Recurring aftersales and service income

Aftersales and service revenues are typically higher-margin and recurring, driven by a large installed vehicle base and manufacturer service schedules. This business line smooths cyclicality, supports cash generation over time, and creates cross-selling leverage for finance and insurance products, strengthening long-term resilience.

Negative Factors

High leverage

Material leverage increases financial risk and reduces flexibility to invest, acquire, or weather downturns. In a higher-rate or softer-demand environment, interest and covenant exposure can compress net income and cash available for operations and strategic initiatives, constraining long-term optionality.

Declining free cash flow

A decline in free cash flow limits the firm's capacity to fund inventory, capex, dividends, or acquisitions without raising external capital. Even with operating cash generation, weaker FCF reduces balance-sheet flexibility and increases reliance on debt or equity to finance growth or absorb cyclical shocks.

Falling net profit margin

A deteriorating net margin signals that increased costs, interest, or tax pressures are eroding earnings conversion from revenue. Persisting margin compression would reduce retained earnings and the ability to self-fund strategic investments, weakening long-term profitability despite strong gross and EBIT trends.

Eagers Automotive Limited Business Overview & Revenue Model

Company Description

Eagers Automotive Limited engages in the ownership and operation of motor vehicle and truck dealerships in Australia and New Zealand. It operates through: Car Retailing, Truck Retailing, and Property segments. The Car Retailing segment offers a range of automotive products and services, including new and used vehicles, vehicle maintenance and repair services, vehicle parts, service contracts, vehicle brokerage services, vehicle protection products, and other aftermarket products. It also facilitates financing for vehicle purchases through third-party sources; and engages in the motor auction business and forklift rental business. The Truck Retailing segment offers various products and services comprising new and used trucks, truck maintenance and repair services, truck parts, service contracts, truck protection products, and other aftermarket products; and facilitates financing for truck purchases through third-party sources. The Property segment acquires and rents commercial properties. The company was formerly known as A.P. Eagers Limited and changed its name to Eagers Automotive Limited in July 2020. Eagers Automotive Limited was founded in 1913 and is based in Newstead, Australia.

How the Company Makes Money

Eagers Automotive generates revenue primarily through the sale of new and used vehicles, which constitutes a significant portion of its earnings. The company also profits from the sale of automotive parts and accessories, as well as service and repair operations conducted at its dealerships. In addition, Eagers Automotive benefits from financing and insurance services, often partnering with financial institutions to offer tailored financing options to customers. The company's revenue streams are further bolstered by strategic partnerships with major automotive manufacturers, allowing it to expand its offerings and enhance customer satisfaction. Seasonal promotions, trade-ins, and leasing options also contribute to its diverse revenue model.

Eagers Automotive Limited Financial Statement Overview

Summary

Eagers Automotive Limited shows strong revenue growth and robust profitability metrics. However, there is a need for improvement in net income and cash flow management. The balance sheet indicates high leverage, which requires careful monitoring, but overall stability and growth prospects are promising.

Income Statement

Eagers Automotive Limited demonstrates strong revenue growth with a substantial increase from 2023 to 2024. The company maintains a healthy gross profit margin, supported by a significant improvement in EBIT margin. However, the net profit margin has declined, indicating higher costs or taxes impacting net income.

Balance Sheet

The balance sheet reflects a relatively high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed carefully. However, the company has shown stability in equity growth and a moderate increase in total assets, which is a positive sign for long-term sustainability.

Cash Flow

The company has seen a decline in free cash flow from 2023 to 2024, which could constrain future investment opportunities. The operating cash flow to net income ratio suggests efficient cash generation, albeit with a need for improvement in free cash flow management relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.23B	11.19B	9.85B	8.54B	8.66B	8.75B
Gross Profit	2.12B	2.00B	1.84B	1.64B	1.62B	790.54M
EBITDA	617.99M	662.80M	636.17M	601.23M	608.14M	481.42M
Net Income	207.76M	205.09M	281.10M	308.17M	317.82M	147.29M
Balance Sheet
Total Assets	5.92B	5.45B	4.72B	4.12B	3.73B	4.03B
Cash, Cash Equivalents and Short-Term Investments	461.91M	183.68M	222.21M	190.43M	197.62M	209.09M
Total Debt	3.55B	3.37B	2.67B	2.34B	2.13B	2.45B
Total Liabilities	4.57B	4.10B	3.42B	2.88B	2.64B	3.11B
Stockholders Equity	1.31B	1.31B	1.27B	1.20B	1.07B	910.72M
Cash Flow
Free Cash Flow	474.06M	227.28M	341.97M	198.61M	234.90M	485.64M
Operating Cash Flow	567.75M	338.93M	416.26M	407.54M	302.70M	527.89M
Investing Cash Flow	-94.39M	-293.21M	-26.05M	-186.15M	135.82M	-29.44M
Financing Cash Flow	-306.90M	-83.70M	-358.45M	-228.07M	-450.00M	-390.89M

Eagers Automotive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APE, the sentiment is Negative. The current price of 25.35 is below the 20-day moving average (MA) of 27.01, below the 50-day MA of 26.66, and above the 200-day MA of 23.89, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:APE.

Eagers Automotive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTO	69 Neutral	AU$197.21M	11.06	8.86%	4.13%	11.62%	―
ASG	64 Neutral	AU$736.73M	21.83	6.57%	2.04%	8.22%	-46.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
APE	60 Neutral	AU$7.16B	33.10	16.06%	2.90%	16.46%	-20.08%
PWR	57 Neutral	AU$290.69M	24.75	2.34%	3.05%	0.32%	-66.48%

Eagers Automotive Limited Corporate Events

Eagers Automotive Issues New Performance Rights Under Employee Incentive Plan

Eagers Automotive Limited has issued 33,600 unquoted performance rights under its employee incentive scheme, effective 19 December 2025. The move reflects the company’s continued use of equity-based remuneration to align staff and executive incentives with long-term shareholder value, although the securities will not be quoted on the ASX, limiting immediate tradability for recipients but reinforcing retention and performance-focused compensation structures.

The most recent analyst rating on (AU:APE) stock is a Buy with a A$33.60 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with Timothy Boyd Irving Crommelin acquiring an additional 5,000 ordinary shares in the company through an on-market trade. This acquisition increases his total holdings to 497,145 shares, potentially signaling confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

The most recent analyst rating on (AU:APE) stock is a Buy with a A$33.60 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with Nicholas George Politis acquiring an additional 100,000 ordinary shares through an on-market trade. This acquisition increases Politis’s total shareholding to 79,263,931 ordinary shares, reflecting ongoing confidence in the company’s market position and potential growth.

The most recent analyst rating on (AU:APE) stock is a Buy with a A$33.60 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Joins S&P/ASX 100 Index in December Rebalance

Eagers Automotive Limited has been added to the S&P/ASX 100 Index as part of the December 2025 quarterly rebalance announced by S&P Dow Jones Indices. This inclusion reflects the company’s strong market performance and is likely to enhance its visibility and attractiveness to investors, potentially impacting its market positioning positively.

The most recent analyst rating on (AU:APE) stock is a Buy with a A$33.60 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Stake Through Entitlement Offer

Eagers Automotive Limited announced a change in the director’s interest, with Michelle Victoria Prater acquiring 591,240 ordinary shares through participation in the company’s accelerated non-renounceable entitlement offer. This acquisition increases her total holding to 15,404,730 shares, reflecting a strategic move that may influence the company’s market positioning and shareholder dynamics.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Stake in Company

Eagers Automotive Limited announced a change in the director’s interest, with Nicholas George Politis acquiring 6,114,883 ordinary shares at $21.00 per share, increasing his total holdings to 79,163,931 shares. This acquisition was part of the company’s accelerated non-renounceable entitlement offer and retail entitlement offer, potentially strengthening Politis’s influence within the company and indicating confidence in its future performance.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Stake in Company

Eagers Automotive Limited announced a change in the director’s interest, with Gregory James Duncan acquiring 29,167 ordinary shares through participation in an accelerated non-renounceable entitlement offer. This change reflects a strategic move to strengthen the director’s stake in the company, potentially signaling confidence in the company’s future performance and impacting shareholder dynamics.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with David Scott Blackhall acquiring an additional 4,167 ordinary shares through participation in an accelerated non-renounceable entitlement offer. This acquisition increases his total holdings to 54,167 shares, reflecting a strategic move to strengthen his stake in the company, which could signal confidence in the company’s future prospects.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with Sophie Alexandra Moore acquiring 34,637 ordinary shares through participation in an accelerated non-renounceable entitlement offer. This acquisition increases her total holdings to 450,272 shares, reflecting a strategic move that could influence the company’s market dynamics and shareholder value.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with Marcus John Birrell acquiring an additional 183,334 ordinary shares through participation in an accelerated non-renounceable entitlement offer. This move increases his total holding to 2,383,334 shares, potentially strengthening his influence and aligning with the company’s strategic financial maneuvers.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive Director Increases Shareholding

Eagers Automotive Limited announced a change in the director’s interest, with Timothy Boyd Irving Crommelin acquiring 37,859 ordinary shares through participation in an accelerated non-renounceable entitlement offer. This change increases Crommelin’s total holdings to 492,145 shares, reflecting a strategic move to strengthen his investment in the company, which may impact the company’s market positioning and shareholder dynamics.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.