Eagers Automotive Limited (APE) AI Stock Analysis

• Market Cap: AU$6.61B
• Dividend Yield: 2.9%
• Average Volume (3M): 675.44K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.06
• Revenue Growth: 16.46%
• EPS Growth: -20.08%
• Country: AU
• Employees: 8,537
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.52
• Shares Outstanding: 282,364,350
• 10 Day Avg. Volume: 934,091
• 30 Day Avg. Volume: 675,436
• PEG Ratio: 3.23
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 16.53
• 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$29.40
• Price Target Upside: 25.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.22
• Revenue Forecast (FY): AU$18.48B

• Rating: 55 Neutral
• Price Target: AU$26.00 ▲(11.11% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by solid revenue growth and consistently positive cash generation, offset by margin compression, higher leverage with declining ROE, and a relatively high P/E. Technical signals are neutral-to-soft, providing limited near-term support.

Positive Factors

Revenue Growth

Sustained top-line growth across 2024–2025 indicates the company is expanding market share or increasing unit throughput. Over 2–6 months this durable trend supports scale advantages, stronger dealer negotiating leverage with OEMs, and a larger installed base that should underpin future aftersales demand.

Cash Generation

Consistent operating cash flow and material free cash flow conversion (FCF ~67% of net income in 2024, ~82% in 2023) provide durable internal funding. This strengthens capacity to fund capex, pay dividends, or reduce debt without reliance on equity markets, improving medium-term financial flexibility.

Diversified Dealership Model

A multi-stream business model—new and used retail, recurring aftersales, finance and insurance, and ancillary fees—creates structural revenue diversification. Aftersales and F&I revenue are more resilient through cycles, smoothing earnings and supporting margins over the medium term.

Negative Factors

Margin Compression

Erosion in gross and net margins indicates pricing pressure or rising costs that compress profitability. Sustained margin weakness will reduce cash available for reinvestment, dividends, or debt paydown and makes the business more sensitive to demand shocks over the coming months.

Rising Leverage

Significantly higher absolute debt and elevated debt-to-equity increase financial risk and interest obligations. Elevated leverage reduces strategic flexibility, raises refinancing risk if conditions tighten, and limits the company's ability to pursue acquisitions or absorb weaker retail demand.

Declining Return on Equity

A marked drop in ROE signals less efficient use of capital and weaker profitability per dollar of equity. Persistently lower returns can constrain investor support, reduce internal performance levers, and imply the business requires more capital to generate similar profits going forward.

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

Revenue has grown steadily (notably 2024 and 2025), and operating/free cash flow are consistently positive. However, profitability has weakened with margin compression and more variable earnings, while leverage has increased and ROE has declined, tempering overall financial strength.

Income Statement

Revenue growth has been solid over the last few years, rising from 2022 through 2025, with 2025 up ~6.7% and 2024 up ~13.6%. Profitability, however, has compressed versus earlier years: gross margin eased from ~19% (2022–2023) to ~17.9% (2024), and net margin declined from ~3.7% (2021–2022) to ~2.9% (2023) and ~1.8% (2024). Net income also fell from 2022–2023 highs before modestly improving in 2024 and 2025, indicating a business growing top-line but facing margin pressure and more variable earnings power.

Balance Sheet

Leverage is the key constraint. Total debt increased to ~3.75B in 2025 from ~2.13B in 2021, and debt relative to equity remains elevated (about 2.56x in 2024, up from ~1.94–2.11x in 2022–2023). While equity has grown (supporting a larger asset base), returns on equity have trended down meaningfully from ~29.8% (2021) to ~15.6% (2024), suggesting the balance sheet is carrying more capital and debt for a lower level of profitability. Overall, the balance sheet is workable but more leveraged and less efficient than earlier years.

Cash Flow

Cash generation is a clear strength, with positive operating cash flow each year and consistently positive free cash flow. Free cash flow improved sharply in 2023 and remains strong in 2025, but volatility is notable: free cash flow growth was negative in 2024 and 2025 (with 2025 down ~18%). Cash conversion has been reasonable, with free cash flow running at ~67% of net income in 2024 and ~82% in 2023, indicating reported earnings are generally supported by cash—though not with a consistently improving trend.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.05B	11.19B	9.85B	8.54B	8.66B
Gross Profit	1.15B	2.00B	1.84B	1.64B	1.62B
EBITDA	767.02M	662.80M	636.17M	601.23M	608.14M
Net Income	226.66M	205.09M	281.10M	308.17M	317.82M
Balance Sheet
Total Assets	6.17B	5.45B	4.72B	4.12B	3.73B
Cash, Cash Equivalents and Short-Term Investments	456.70M	183.68M	222.21M	190.43M	197.62M
Total Debt	3.75B	3.37B	2.67B	2.34B	2.13B
Total Liabilities	4.19B	4.10B	3.42B	2.88B	2.64B
Stockholders Equity	1.86B	1.31B	1.27B	1.20B	1.07B
Cash Flow
Free Cash Flow	387.74M	227.28M	341.97M	198.61M	234.90M
Operating Cash Flow	459.01M	338.93M	416.26M	407.54M	302.70M
Investing Cash Flow	100.85M	-293.21M	-26.05M	-186.15M	135.82M
Financing Cash Flow	-284.76M	-83.70M	-358.45M	-228.07M	-450.00M

Eagers Automotive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 23.4 is below the 20-day moving average (MA) of 25.20, below the 50-day MA of 25.76, and below the 200-day MA of 24.54, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.23 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$213.46M	10.64	8.86%	4.13%	11.62%	―
ASG	64 Neutral	AU$631.78M	14.46	6.57%	2.04%	8.22%	-46.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PWR	57 Neutral	AU$265.75M	17.22	2.34%	3.05%	0.32%	-66.48%
APE	55 Neutral	AU$6.61B	27.55	16.06%	2.90%	16.46%	-20.08%

Eagers Automotive Limited Corporate Events

Eagers Automotive Sets Date for Full-Year 2025 Results and Investor Call

Eagers Automotive Limited has announced it will release its full-year 2025 financial results on 19 February 2026, accompanied by a conference call for analysts and investors at 9:30am AEST. The company is providing both dial-in and webcast access, signalling an effort to ensure broad market engagement with its results and to facilitate direct interaction with management, which will be closely watched by stakeholders assessing the group’s performance and outlook in the automotive retail sector.

The most recent analyst rating on (AU:APE) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Eagers Automotive Limited stock, see the AU:APE Stock Forecast page.

Eagers Automotive 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.