CAR Group (CAR) AI Stock Analysis

• Market Cap: AU$11.47B
• Dividend Yield: 2.59%
• Average Volume (3M): 848.20K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 1.26
• 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: 378,433,780
• 10 Day Avg. Volume: 915,676
• 30 Day Avg. Volume: 848,204
• PEG Ratio: 4.84
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 11.94
• P/FCF Ratio: 35.22
• 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$41.34
• Price Target Upside: 36.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$38.00 ▲(25.41% Upside)

CAR Group's strong financial performance is the primary driver of its stock score, supported by robust profitability and a stable balance sheet. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, supporting long-term business expansion.

Profit Margins

High profit margins reflect strong competitive advantages and operational efficiency, contributing to sustainable profitability.

Balance Sheet Health

A moderate debt-to-equity ratio suggests financial stability and flexibility, allowing for strategic investments and growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to invest in new opportunities and return capital to shareholders.

Return on Equity

A modest return on equity indicates potential inefficiencies in using equity capital, which may impact shareholder value over time.

Cash Flow Pressure

Pressure on free cash flow, despite strong operating cash flow, could signal challenges in sustaining cash generation for future growth.

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. The primary source of income comes from its vehicle leasing and rental services, where customers pay fees for short-term and long-term use of vehicles. Additionally, CAR Group offers fleet management services to businesses, which includes managing vehicle maintenance, tracking, and telematics solutions, providing a recurring revenue model through service contracts. The company also earns revenue from automotive maintenance services, where clients pay for regular servicing and repairs. Strategic partnerships with vehicle manufacturers and technology providers further enhance CAR's offerings and can contribute to additional income through co-branded services and promotions.

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.

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	400.36M	286.32M	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: 30.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 30.3 is below the 20-day moving average (MA) of 32.46, below the 50-day MA of 34.04, and below the 200-day MA of 35.55, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of 10.66 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
DHG	68 Neutral	―	―	―	―	12.43%	47.92%
CAR	61 Neutral	AU$11.47B	41.53	9.46%	2.59%	7.75%	10.03%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
REA	60 Neutral	AU$24.06B	35.47	38.75%	1.36%	13.09%	123.97%
RNT	52 Neutral	AU$54.99M	-9.58	-150.45%	―	0.72%	17.24%

CAR Group Corporate Events

CAR Group Appoints New CFO to Drive Strategic Growth

CAR Group Limited has appointed Geoff Trumbull as its new Chief Financial Officer, effective March 2026. With over 20 years of experience in finance roles across various sectors, Geoff is expected to support CAR Group’s continued growth and strategic objectives. His appointment is seen as a vital step in advancing the company’s goals and delivering value to shareholders. Stephen Wong, who served as interim CFO, will return to his role as Chief Strategy Officer.

CAR Group Director’s Interest in Securities Increases

CAR Group Limited has announced a change in the interests of its director, William John Elliott, in the company’s securities. The change involves an increase in unvested performance rights held indirectly through the Katille Investment Trust, which is owned and operated by the Elliott family. This adjustment reflects a significant increase in Elliott’s indirect stake in the company, potentially impacting his influence and decision-making within the organization.

CAR Group Limited Issues Performance Rights to Boost Employee Incentives

CAR Group Limited has announced the issuance of 288,100 performance rights under an employee incentive scheme. These unquoted securities are subject to transfer restrictions and are not listed on the ASX until these restrictions are lifted, reflecting the company’s strategy to incentivize and retain key personnel, potentially impacting its operational efficiency and market competitiveness.

CAR Group Announces 2025 AGM Results

CAR Group Limited, a company listed on the Australian Securities Exchange, held its 2025 Annual General Meeting where shareholders voted on various resolutions. The outcomes of these resolutions were determined by a poll and included all available proxies, indicating the company’s adherence to regulatory requirements and shareholder engagement.

CAR Group Ltd Secures Strong Shareholder Support for FY24 Remuneration Report

CAR Group Ltd held its Annual General Meeting to discuss the adoption of the FY24 Remuneration Report, which covers the financial year ending 30 June 2025. The resolution to adopt the report was supported by a significant majority, with 282,835,729 votes in favor and only 5,073,403 against, indicating strong shareholder approval of the company’s remuneration policies.

CAR Group Announces Director Retirement and Leadership Transition

CAR Group Limited announced the retirement of Ms. Kim Anderson as a director, effective October 31, 2025. Ms. Anderson, who has been with the company since 2010 and chaired the People & Culture Committee, played a crucial role in the company’s Board renewal program and international remuneration structure. Her departure follows her extended tenure post the acquisition of Trader Interactive, leveraging her North American expertise. Ms. Susan Massasso will succeed her as the chair of the People & Culture Committee. The Board expressed gratitude for Ms. Anderson’s contributions, which have significantly benefited shareholders.