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Autosports Group Ltd (AU:ASG)
ASX:ASG
Australian Market

Autosports Group Ltd (ASG) AI Stock Analysis

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AU

Autosports Group Ltd

(Sydney:ASG)

Rating:67Neutral
Price Target:
AU$2.50
▲(19.05%Upside)
Autosports Group Ltd's stock is supported by strong financial performance, particularly in revenue and cash flow growth, coupled with attractive valuation metrics. However, the high leverage and overbought technical indicators introduce risks that slightly temper the overall outlook.

Autosports Group Ltd (ASG) vs. iShares MSCI Australia ETF (EWA)

Autosports Group Ltd Business Overview & Revenue Model

Company DescriptionAutosports Group Limited, together with its subsidiaries, engages in the motor vehicle retailing business in Australia. The company sells new and used motor vehicles, aftermarket products, and spare parts; distributes finance and insurance products; and provides motor vehicle servicing and collision repair services. As of August 1, 2022, it operates 47 franchised dealerships. The company also operates 3 used motor vehicle outlets; 3 franchised motorcycle dealerships; and 7 motor vehicle collision repair facilities. Autosports Group Limited was founded in 2006 and is based in Leichhardt, Australia.
How the Company Makes MoneyAutosports Group Ltd makes money primarily through the sale of new and used vehicles, which constitutes a significant portion of its revenue. Additionally, the company generates income from its after-sales services, including vehicle servicing and the sale of automotive parts. Another key revenue stream for ASG is its finance and insurance offerings, where it earns commissions and fees from facilitating vehicle financing and selling insurance products to customers. The company's strategic partnerships with major automotive manufacturers and financial institutions further bolster its revenue, as these relationships enable ASG to offer competitive products and services that attract a steady customer base.

Autosports Group Ltd Financial Statement Overview

Summary
Autosports Group Ltd shows robust revenue growth and commendable cash flow generation, yet faces challenges with high leverage and moderate margins. The company's financial performance is buoyed by consistent revenue increases and strong cash flow, though maintaining debt levels and improving profitability margins should be key focus areas moving forward.
Income Statement
78
Positive
Autosports Group Ltd displayed solid revenue growth with Total Revenue increasing from $2,371 million to $2,647 million (11.6% growth). The Gross Profit Margin for 2024 is approximately 9.50%, and the Net Profit Margin is about 2.30%. The EBIT Margin stands at 5.51% and the EBITDA Margin at 7.75%. While the margins indicate moderate profitability, consistent revenue growth is a positive sign.
Balance Sheet
65
Positive
The company's Debt-to-Equity Ratio is 2.01, indicating high leverage, which poses potential risk if not managed carefully. The Return on Equity (ROE) for 2024 is 12.31%, showing decent profitability relative to shareholder equity. The Equity Ratio is 28.62%, suggesting a moderate proportion of equity financing in the company's capital structure. The high debt levels could be a concern if revenue growth slows.
Cash Flow
70
Positive
Operating Cash Flow to Net Income Ratio is 1.96, indicating strong cash generation relative to reported profits. Free Cash Flow Growth Rate from 2023 to 2024 is an impressive 179.45%, demonstrating the company's ability to generate free cash flow effectively. However, fluctuations in Free Cash Flow over the years suggest potential instability in cash management.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.67B2.65B2.37B1.88B1.98B1.70B
Gross Profit
370.74M514.91M234.48M174.69M149.07M90.95M
EBIT
200.96M145.73M145.86M99.20M72.10M16.68M
EBITDA
139.29M204.50M197.89M151.54M129.38M-32.53M
Net Income Common Stockholders
36.10M60.87M65.43M53.38M41.93M-102.45M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.17M36.29M42.00M90.82M96.84M38.82M
Total Assets
1.84B1.73B1.62B1.22B1.21B1.18B
Total Debt
1.08B991.95M902.98M579.15M610.04M653.65M
Net Debt
1.05B955.66M860.98M488.33M513.20M614.83M
Total Liabilities
1.35B1.23B1.14B775.08M785.73M803.66M
Stockholders Equity
490.19M494.54M472.48M444.17M417.73M377.38M
Cash FlowFree Cash Flow
117.52M90.35M32.34M65.91M92.20M56.72M
Operating Cash Flow
147.21M119.53M166.00M135.03M125.83M83.79M
Investing Cash Flow
-89.64M-29.18M-250.46M-88.17M-36.15M-35.02M
Financing Cash Flow
-57.96M-96.05M35.49M-52.89M-31.66M-21.24M

Autosports Group Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.10
Price Trends
50DMA
1.97
Positive
100DMA
1.86
Positive
200DMA
1.92
Positive
Market Momentum
MACD
0.02
Positive
RSI
50.91
Neutral
STOCH
61.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASG, the sentiment is Neutral. The current price of 2.1 is below the 20-day moving average (MA) of 2.13, above the 50-day MA of 1.97, and above the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ASG.

Autosports Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUASG
67
Neutral
AU$425.12M11.717.39%3.33%0.90%-45.49%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
DEWN6
€7.71B49.238.51%2.30%
DE0BS
€992.98M-16.06%2.88%
AUSUL
73
Outperform
AU$3.18B14.0417.52%4.54%2.56%-13.62%
AUMXI
68
Neutral
AU$129.19M21.126.97%2.62%25.55%135.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ASG
Autosports Group Ltd
2.09
-0.03
-1.42%
DE:WN6
CAR Group
20.80
-0.33
-1.56%
DE:0BS
Bapcor Ltd
2.88
-0.04
-1.37%
AU:MXI
MaxiPARTS Limited
2.33
0.52
28.73%
AU:SUL
Super Retail Group Limited
14.51
2.35
19.33%

Autosports Group Ltd Corporate Events

Autosports Group Strengthens Leadership with New Director Appointment
May 12, 2025

Autosports Group Limited has announced the appointment of Peter O’Connell as a new director, effective May 9, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, although O’Connell currently holds no relevant interests in the company’s securities. The announcement is expected to enhance the company’s governance structure, potentially impacting its strategic direction and stakeholder relations positively.

Autosports Group Announces Director Departure
May 12, 2025

Autosports Group Limited announced the cessation of James Evans as a director, effective May 9, 2025. This change in the board may impact the company’s strategic direction and governance, as Evans held a significant interest in the company through 88,612 ordinary shares via Silverthorne Estate Pty Ltd.

Autosports Group Appoints Peter O’Connell as New Chair
May 9, 2025

Autosports Group Ltd has announced the retirement of its Chair, James Evans, who has been succeeded by Peter O’Connell. Evans, who has been with the company since 2021, oversaw a period of significant expansion. O’Connell brings over 40 years of experience in leadership and corporate strategy across various industries, and his appointment is expected to guide Autosports Group towards continued success and strategic growth.

Autosports Group Announces Registry Office Relocation
Apr 11, 2025

Autosports Group Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will move to a new location at Liberty Place, Castlereagh Street, while maintaining the same telephone numbers and postal address. This relocation is part of the company’s operational adjustments and is not expected to impact its stakeholders significantly.

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.