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CAR Group
(Sydney:CAR)
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Rating:74Outperform
Price Target:
AU$34.00
▲(42.14% Upside)
Action:Upgraded
Date:08/17/26
The score is primarily supported by strong financial performance—high margins, solid multi-year revenue expansion, and excellent cash conversion—partly offset by increasing leverage and some volatility/one-off signals in reported profitability and free cash flow. Technicals add support due to a clear uptrend, but elevated RSI/Stoch indicate the move may be stretched. Valuation is a meaningful headwind given the high P/E, only partially mitigated by the dividend yield.
Positive Factors
Scale and Margins
CAR has expanded materially while retaining very high gross and operating margins. This combination indicates marketplace scale and operating leverage, supporting durable profitability as the platform grows across dealer, consumer and international channels.
Negative Factors
Rising Leverage
Higher debt relative to equity increases financial risk and may constrain flexibility if investment needs or operating conditions worsen. Although capitalization remains solid, continued debt growth could reduce the resilience of future cash deployment.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Margins
CAR has expanded materially while retaining very high gross and operating margins. This combination indicates marketplace scale and operating leverage, supporting durable profitability as the platform grows across dealer, consumer and international channels.
Read all positive factors
CAR Group (CAR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$11.40B
Dividend Yield2.79%
Average Volume (3M)848.20K
Price to Earnings (P/E)35.2
Beta (1Y)1.23
Revenue Growth5.88%
EPS Growth13.64%
CountryAU
Employees2,500
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.83
Shares Outstanding378,865,900
10 Day Avg. Volume915,676
30 Day Avg. Volume848,204
Financial Highlights & Ratios
PEG Ratio2.27
Price to Book (P/B)3.55
Price to Sales (P/S)7.78
P/FCF Ratio19.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$33.30Price Target Upside39.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.17
Revenue Forecast (FY)AU$1.38B
CAR Group Business Overview & Revenue Model
Company Description
Established in 1996 and headquartered in Melbourne, Australia, CAR Group Limited, previously known as carsales.com Ltd until November 2023, is a global leader in online classifieds for vehicles across automotive, motorcycle, and marine categories....
How the Company Makes Money
CAR primarily makes money by monetizing its online automotive marketplaces. Key revenue streams include: (1) Dealer subscriptions and listing packages: recurring fees paid by motor dealers to advertise inventory and access marketplace products; pr...
CAR Group Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25B | 1.18B | 1.10B | 781.24M | 509.08M |
| Gross Profit | 916.30M | 1.13B | 769.81M | 550.89M | 377.51M |
| EBITDA | 667.27M | 631.75M | 585.49M | 400.36M | 286.32M |
| Net Income | 313.69M | 275.49M | 249.97M | 645.62M | 160.82M |
Balance Sheet | |||||
| Total Assets | 4.90B | 4.89B | 4.67B | 4.68B | 1.86B |
| Cash, Cash Equivalents and Short-Term Investments | 325.61M | 289.33M | 308.31M | 198.71M | 117.45M |
| Total Debt | 1.60B | 1.41B | 1.34B | 1.24B | 714.17M |
| Total Liabilities | 2.09B | 1.84B | 1.73B | 1.56B | 847.71M |
| Stockholders Equity | 2.74B | 2.98B | 2.88B | 3.07B | 1.01B |
Cash Flow | |||||
| Free Cash Flow | 498.29M | 401.22M | 314.39M | 167.38M | 145.67M |
| Operating Cash Flow | 510.12M | 520.13M | 416.19M | 254.38M | 193.94M |
| Investing Cash Flow | -312.19M | -214.81M | -137.61M | -1.57B | -831.53M |
| Financing Cash Flow | -145.89M | -331.27M | -190.62M | 1.37B | 472.26M |
CAR Group Technical Analysis
Positive
23.92
Price Trends
26.51
Positive
25.75
Positive
27.42
Positive
Market Momentum
0.90
Negative
67.33
Neutral
82.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAR, the sentiment is Positive. The current price of 23.92 is below the 20-day moving average (MA) of 26.89, below the 50-day MA of 26.51, and below the 200-day MA of 27.42, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 67.33 is Neutral, neither overbought nor oversold. The STOCH value of 82.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CAR.
CAR Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$23.16B | 42.13 | 27.90% | 1.71% | 4.24% | -18.52% | |
74 Outperform | AU$11.40B | 35.18 | 10.19% | 3.45% | 5.88% | 13.64% | |
61 Neutral | AU$63.13M | -33.72 | -8.93% | ― | -6.17% | -191.49% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
47 Neutral | AU$18.09M | -1.41 | -28.72% | ― | -5.31% | 7.89% | |
46 Neutral | AU$78.16M | -13.20 | -76.28% | ― | 20.25% | 5.66% | |
46 Neutral | AU$105.18M | -3.07 | -550.33% | ― | 14.49% | -66.27% |
* Communication Services Sector Average
AU:CAR
CAR Group
29.59
-10.90
-26.92%
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CAR Group Corporate Events
CAR Group lodges updated ASX governance statement and Appendix 4G
Aug 9, 2026
CAR Group has lodged its updated corporate governance statement and accompanying Appendix 4G with the ASX for the financial year ended 30 June 2026, confirming the statement is current as of 9 August 2026 and has been approved by the board. The di...
CAR Group declares interim dividend of AUD 0.435 per share
Aug 9, 2026
CAR Group Limited has declared an ordinary interim dividend of AUD 0.435 per share for the six-month period ended 30 June 2026, payable on 12 October 2026 to shareholders on the register as of 14 September 2026. The shares will trade ex-dividend f...
CAR Group lifts profit and dividend as revenue rises in 2026
Aug 9, 2026
CAR Group Limited reported a 6% increase in revenue from continuing operations to A$1.25 billion for the year ended 30 June 2026, with statutory profit after tax rising 14% to A$332.4 million and net profit attributable to members also up 14% to A...
Mitsubishi UFJ Unit Ends Substantial Holding in CAR Group
Jul 15, 2026
Mitsubishi UFJ Financial Group and its asset management arm First Sentier Investors have lodged a notice that they have ceased to be substantial shareholders in CAR Group Ltd as of 13 July 2026. The change, detailed in an Australian Corporations A...
CAR Group sets date for full‑year 2026 results briefing
Jul 7, 2026
CAR Group Limited, a global digital marketplace business, operates online vehicle platforms across automotive, commercial, industrial and leisure segments in markets including Australia, South Korea, the U.S., Chile and Brazil. Through brands such...
CAR Group Reports Lapse of 12,932 Performance Rights
Jul 3, 2026
CAR Group Limited has disclosed a change in its capital structure, notifying the cessation of 12,932 performance rights under its CARAA security code. The rights lapsed after specified conditions were not met or became incapable of being satisfied...
Mitsubishi UFJ exits substantial holder position in CAR Group
May 27, 2026
Mitsubishi UFJ Financial Group has lodged a notice that it has ceased to be a substantial shareholder in CAR Group Limited, following a series of transactions in the company’s fully paid ordinary shares. The change in substantial holding sta...
Institutional Investor First Sentier Exits Substantial Holding in CAR Group
May 26, 2026
CAR Group Ltd has disclosed that First Sentier Group Limited, together with a broad network of related entities under Mitsubishi UFJ Financial Group, has ceased to be a substantial holder in the company as of 22 May 2026. The notice signals a redu...
JPMorgan Group Drops Below Substantial Holder Threshold in CAR Group
May 22, 2026
JPMorgan Chase Co. and several of its global affiliates have notified CAR Group Ltd that they have ceased to be a substantial holder in the Australian company, according to a regulatory Form 605 filing. The change reflects a series of transaction...
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.