CAR Group (CAR) AI Stock Analysis

• Market Cap: €14.02B
• Dividend Yield: 2.16%
• Average Volume (3M): 825.15K
• Price to Earnings (P/E): 50.8
• Beta (1Y): 1.29
• Revenue Growth: 7.75%
• EPS Growth: 10.03%
• Country: AU
• Employees: 2,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.53
• Shares Outstanding: 378,146,450
• 10 Day Avg. Volume: 836,882
• 30 Day Avg. Volume: 825,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €40.84
• Price Target Upside: 10.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 57 Neutral
• Price Target: AU$38.00 ▲(2.51% Upside)

CAR Group's strong financial performance is overshadowed by bearish technical indicators and a high valuation. The company's robust profitability and stable balance sheet are positive, but the stock's current market momentum and valuation present significant risks. Investors should be cautious given the technical downtrend and high P/E ratio.

CAR Group Business Overview & Revenue Model

Company Description

CAR Group Limited operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, the United States, and Mexico. The company operates through Online Advertising Services; Data, Research and Services; Carsales Investments; North America; Latin America; and Asia segments. The Online Advertising Services segment offers classified advertising that allows private and dealer customers to advertise automotive and non-automotive goods and services for sale across the carsales network; products, including subscriptions, lead fees, listing fees, and priority placement services; and display advertising services, such as placing advertisements on carsales network websites for corporate customers comprising automotive manufacturers and finance companies. The Data, Research and Services segment offers software as a service, research and reporting, valuation, appraisals, and website development and hosting services, as well as photography services. The Carsales Investments segment holds investment in consumer and wholesale tyre markets, as well as provides mobility and vehicle inspection services. The North America segment operates digital non-automotive marketplaces. The Latin America segment digital automotive marketplaces. The Asia segment is involved in digital automotive classified business, as well as provides automotive data and advertising services. The company was formerly known as carsales.com Ltd and changed its name to CAR Group Limited in November 2023. CAR Group Limited was incorporated in 1996 and is headquartered in Melbourne, Australia.

How the Company Makes Money

CAR Group generates revenue through several key streams. Primarily, it earns income from the sale of vehicles, including passenger cars and commercial vehicles, to individual consumers and businesses. Additionally, CAR Group benefits from its financial services division, which provides vehicle financing, leasing, and insurance products, creating a steady flow of interest and fee income. The company's after-sales services, including maintenance, repair, and sale of spare parts, also contribute significantly to its earnings. Strategic partnerships with technology firms and suppliers enhance its product offerings and operational efficiencies, while its investments in electric vehicles and sustainable technologies position it for future growth.

CAR Group Financial Statement Overview

Summary

CAR Group exhibits strong financial health with robust profitability and growth in the income statement, a stable balance sheet with manageable leverage, and solid cash flow generation. While the company shows strength in revenue and profit margins, attention should be given to the declining free cash flow growth. Overall, CAR Group is well-positioned in its industry, with a strong financial foundation to support future growth.

Income Statement

CAR Group has demonstrated consistent revenue growth with a 3.2% increase in the latest period. The company maintains a high gross profit margin of 95.2%, indicating strong pricing power and cost management. Net profit margin is robust at 23.3%, reflecting effective control over expenses. EBIT and EBITDA margins are healthy at 38.9% and 53.4%, respectively, showcasing operational efficiency. Overall, the income statement reflects strong profitability and growth.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.47, indicating a balanced approach to leverage. Return on equity is modest at 9.3%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 60.9%, reflecting a solid capital structure with a strong equity base. Overall, the balance sheet is stable, with manageable debt levels and a strong equity position.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.94, indicating sufficient cash generation to cover net income. However, free cash flow growth has declined by 13.1%, which could be a concern if it persists. The free cash flow to net income ratio is healthy at 0.77, suggesting good cash conversion. Overall, cash flow is solid but shows some signs of pressure in free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.18B	1.18B	1.10B	781.24M	509.08M	427.16M
Gross Profit	914.20M	1.13B	769.81M	550.89M	377.51M	327.44M
EBITDA	630.95M	631.75M	585.49M	854.68M	270.70M	242.10M
Net Income	275.49M	275.49M	249.97M	645.62M	160.82M	130.70M
Balance Sheet
Total Assets	4.89B	4.89B	4.67B	4.68B	1.86B	1.16B
Cash, Cash Equivalents and Short-Term Investments	289.33M	289.33M	308.31M	198.71M	117.45M	284.00M
Total Debt	1.41B	1.41B	1.34B	1.24B	714.17M	106.58M
Total Liabilities	1.84B	1.84B	1.73B	1.56B	847.71M	223.09M
Stockholders Equity	2.98B	2.98B	2.88B	3.07B	1.01B	938.74M
Cash Flow
Free Cash Flow	484.38M	401.22M	314.39M	167.38M	145.67M	156.46M
Operating Cash Flow	492.49M	520.13M	416.19M	254.38M	193.94M	189.76M
Investing Cash Flow	-230.23M	-214.81M	-137.61M	-1.57B	-831.53M	-54.13M
Financing Cash Flow	-245.53M	-331.27M	-190.62M	1.37B	472.26M	-30.08M

CAR Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.07
• 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:CAR, the sentiment is Negative. The current price of 37.07 is below the 20-day moving average (MA) of 38.36, below the 50-day MA of 38.46, and above the 200-day MA of 36.35, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CAR.

CAR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REA	61 Neutral	AU$30.55B	45.05	35.46%	1.07%	13.09%	123.97%
CAR	57 Neutral	€14.02B	50.81	9.46%	2.16%	7.75%	10.03%
RNT	42 Neutral	AU$40.12M	-8.54	―	―	0.72%	17.24%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

CAR Group Corporate Events

CAR Group Announces Leadership Transition with New CEO Appointment

CAR Group Limited has announced a leadership transition with William Elliott, the current CFO, set to take over as CEO from Cameron McIntyre, who has been with the company for 18 years. This change is part of a well-planned succession strategy, with Elliott bringing over a decade of experience within the company and a strong financial and commercial acumen. The transition is expected to maintain the company’s growth trajectory and strengthen its position in the global market.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Limited Announces New Securities Quotation

CAR Group Limited has announced the issuance of 5,588 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders by increasing the liquidity of its shares.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Limited to Quote New Securities on ASX

CAR Group Limited has announced the application for quotation of 1,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move signifies the company’s effort to expand its market presence and enhance liquidity for its stakeholders, potentially impacting its financial standing and investor relations positively.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Limited to Announce Full-Year Financial Results on August 11, 2025

CAR Group Limited announced that it will release its full-year financial results for the year ending June 30, 2025, on August 11, 2025. The announcement will be accompanied by a results briefing hosted by the CEO and CFO, which will be available on their investor website. This release is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the global online vehicle marketplace industry.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Limited Announces Quotation of New Securities on ASX

CAR Group Limited has announced the quotation of 2,937 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 27, 2025. This move indicates CAR Group’s efforts to enhance its market presence and provide liquidity to its stakeholders, potentially impacting its operational dynamics and industry positioning.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Limited Announces Quotation of New Securities

CAR Group Limited has announced the application for quotation of 12,300 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions, indicating a strategic move to enhance employee engagement and potentially improve the company’s market position.