CAR Group (CAR) AI Stock Analysis

• Market Cap: AU$11.49B
• Dividend Yield: 2.57%
• Average Volume (3M): 848.20K
• Price to Earnings (P/E): 41.6
• Beta (1Y): 1.23
• 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$41.48
• Price Target Upside: 35.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$32.00 ▲(4.54% 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

High Profitability & Margins

Exceptionally high gross and healthy operating/net margins indicate sustained pricing power and tight cost control across services. Such margin structure supports durable cash generation, funds reinvestment into fleet and tech, and provides resilience through industry cycles.

Stable Balance Sheet and Manageable Leverage

A conservative leverage profile and strong equity base provide financial flexibility for capital-intensive leasing operations, lower refinancing risk, and capacity to fund growth or absorb shocks without jeopardizing operations or strategic investments over the medium term.

Recurring, Diversified Revenue Streams

A diversified mix of leasing, service contracts and maintenance creates predictable recurring revenue and cross-sell opportunities. Strategic partnerships and telematics enhance retention and reduce customer acquisition costs, supporting stable top-line durability and long-term client relationships.

Negative Factors

Declining Free Cash Flow Growth

A material decline in free cash flow growth reduces internal funding for fleet replacement, technology, or dividends. If the trend persists, it could force external financing, constrain strategic investments, or pressure liquidity cushions critical for capital-intensive leasing operations.

Slowing Recent Revenue Momentum

A modest latest-period revenue increase suggests top-line deceleration versus longer-term trends. Slower revenue growth can limit scale benefits, weaken pricing leverage, and make it harder to fund margin-enhancing initiatives, affecting medium-term earnings expansion.

Modest Return on Equity

ROE below high-performing peers implies limited efficiency in converting equity into returns. For a capital-heavy business, modest ROE signals potential underutilization of assets or suboptimal capital allocation, which may constrain shareholder value creation over time.

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: Neutral
• Last Price: 30.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAR, the sentiment is Neutral. The current price of 30.61 is above the 20-day moving average (MA) of 30.58, below the 50-day MA of 32.55, and below the 200-day MA of 35.38, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CAR.

CAR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAR	61 Neutral	AU$11.49B	41.63	9.46%	2.57%	7.75%	10.03%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
REA	60 Neutral	AU$24.64B	36.33	38.75%	1.33%	13.09%	123.97%
RNT	52 Neutral	AU$53.78M	-9.58	-150.45%	―	0.72%	17.24%

CAR Group Corporate Events

CAR Group Sets Date to Release Half-Year 2025 Results

CAR Group Limited has announced it will release its financial results for the half year ended 31 December 2025 on 9 February 2026, accompanied by a results briefing hosted by managing director and CEO William Elliott the same morning. The presentation will be made available on the company’s investor website, signalling ongoing efforts to maintain transparent communication with investors and other stakeholders ahead of a key trading update for the international online vehicle marketplace operator.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.20 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

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.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$42.55 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.