CAR Group (CAR) AI Stock Analysis

• Market Cap: AU$9.46B
• Dividend Yield: 2.57%
• Average Volume (3M): 848.20K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.35
• 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): 0.52
• 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$36.08
• Price Target Upside: 47.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.08
• Revenue Forecast (FY): AU$1.28B

• Rating: 62 Neutral
• Price Target: AU$25.00 ▲(2.12% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

Overall score reflects strong underlying financial performance and profitability, tempered by weak technical conditions (price below key moving averages with negative MACD and low RSI) and a relatively high P/E that limits valuation support.

Positive Factors

Operating Profitability

Exceptionally high gross and operating margins indicate durable pricing power and efficient cost structure across leasing, fleet and maintenance services. Strong margins provide recurring cash buffer to fund investment, absorb cyclical revenue swings, and sustain profitability over the next several months.

Balance Sheet Strength

Moderate leverage and a strong equity base give the company financial flexibility to finance fleet purchases, sustain service contracts, and pursue partnerships. Manageable debt levels reduce refinancing risk and support strategic investment or weathering sector volatility over a multi-month horizon.

Cash Generation & Conversion

Operating cash flow nearly doubles net income and free cash flow converts a healthy proportion of earnings, indicating robust underlying cash generation. Reliable cash conversion supports ongoing fleet maintenance, working capital needs, and provides optionality for dividends or deleveraging.

Negative Factors

Modest Revenue Growth

Top-line expansion is limited, reducing opportunities for significant operating leverage and margin expansion. Slower revenue growth constrains earnings momentum and makes medium-term improvement dependent on winning market share or introducing new services rather than relying on organic volume gains.

Declining Free Cash Flow Growth

A meaningful drop in FCF growth signals potential pressure from rising capex, working capital build, or one-off items. If this trend persists it could limit flexibility for fleet reinvestment, reduce cash available for strategic initiatives, and strain capacity to maintain payouts or accelerate debt reduction.

Modest Return on Equity

A middling ROE suggests the company may not be fully converting its capital base into shareholder returns. Sustained moderate ROE can reduce investor confidence and indicates room to improve asset utilization or pricing to enhance long-term capital efficiency.

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

Strong profitability and operating efficiency (95.2% gross margin, 23.3% net margin, 38.9% EBIT margin, 53.4% EBITDA margin) with modest revenue growth (+3.2%). Balance sheet leverage is manageable (debt-to-equity 0.47) with a solid equity base (60.9% equity ratio), but ROE is modest (9.3%). Cash generation is solid (operating cash flow coverage 1.94; FCF/NI 0.77) though free cash flow growth declined (-13.1%).

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.23B	1.18B	1.10B	781.24M	509.08M	427.16M
Gross Profit	891.04M	1.13B	769.81M	550.89M	377.51M	327.44M
EBITDA	672.51M	631.75M	585.49M	400.36M	286.32M	242.10M
Net Income	295.36M	275.49M	249.97M	645.62M	160.82M	130.70M
Balance Sheet
Total Assets	4.78B	4.89B	4.67B	4.68B	1.86B	1.16B
Cash, Cash Equivalents and Short-Term Investments	232.44M	289.33M	308.31M	198.71M	117.45M	284.00M
Total Debt	1.50B	1.41B	1.34B	1.24B	714.17M	106.58M
Total Liabilities	1.89B	1.84B	1.73B	1.56B	847.71M	223.09M
Stockholders Equity	2.82B	2.98B	2.88B	3.07B	1.01B	938.74M
Cash Flow
Free Cash Flow	498.96M	401.22M	314.39M	167.38M	145.67M	156.46M
Operating Cash Flow	507.99M	520.13M	416.19M	254.38M	193.94M	189.76M
Investing Cash Flow	-338.96M	-214.81M	-137.61M	-1.57B	-831.53M	-54.13M
Financing Cash Flow	-158.45M	-331.27M	-190.62M	1.37B	472.26M	-30.08M

CAR Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.48
• 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 Negative. The current price of 24.48 is below the 20-day moving average (MA) of 25.58, below the 50-day MA of 28.18, and below the 200-day MA of 34.35, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 67.47 is Neutral, 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	64 Neutral	$21.35B	37.23	38.75%	1.33%	13.09%	123.97%
CAR	62 Neutral	AU$9.46B	31.98	9.46%	2.57%	7.75%	10.03%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RNT	52 Neutral	AU$56.83M	-9.80	-150.45%	―	0.72%	17.24%

CAR Group Corporate Events

CAR Group appoints interim company secretary after Birman steps down

CAR Group Limited, a global operator of online vehicle marketplaces and related advertising and technology solutions, runs platforms across multiple vehicle categories and key international markets including Australia, South Korea, the U.S., Chile and Brazil. Its portfolio includes well-known brands such as carsales, Encar, Trader Interactive, chileautos and a majority stake in webmotors.

CAR Group announced that Nicole Birman has stepped down as Company Secretary with immediate effect, and the board acknowledged her significant contribution during her tenure. Associate General Counsel David McIndoe has been appointed interim Company Secretary and will serve as the primary contact with the ASX, ensuring continuity of governance and regulatory communication while a permanent replacement is sought.

The most recent analyst rating on (AU:CAR) stock is a Buy with a A$38.00 price target. To see the full list of analyst forecasts on CAR Group stock, see the AU:CAR Stock Forecast page.

CAR Group Releases Half-Year Update and Clarifies Use of Non-IFRS Metrics

CAR Group Limited has released a half-year results presentation for the period ended 31 December 2025 that offers a high-level update on its business activities and financial reporting approach. The document emphasises that the material is general background information only and cautions investors not to place undue reliance on forward-looking statements or summary data when making investment decisions.

The company reiterates that its primary statutory results are prepared under IFRS, but it supplements these with non‑IFRS measures like adjusted and pro forma figures used internally for performance assessment and resource allocation. Stakeholders are advised to treat these non‑IFRS metrics as unaudited management tools rather than substitutes for statutory accounts and to seek independent financial advice before acting on the information provided.

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 posts strong H1 FY26 result as AI and global platforms drive growth

CAR Group reported a strong first half for FY26, with proforma revenue rising 13% to $626 million and proforma EBITDA up 12%, underpinned by double-digit growth across all key financial metrics and markets. Reported NPAT increased 16%, cash conversion remained high at 95%, and the company lifted its interim dividend by 10%, signalling confidence in its earnings quality and balance sheet strength.

Operationally, the group delivered broad-based growth, maintaining market leadership for carsales in Australia, achieving excellent performance at Trader Interactive in North America, and expanding webmotors’ market share in Brazil. In Asia, Encar advanced its Guarantee inspection products, while CAR Group deepened its data-led competitive moat and accelerated AI deployment, including a new global AI hub in Brazil and features like voice search and AI companions to enhance dealer efficiency and consumer experience.

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 declares interim dividend of AUD 0.425 per share

CAR Group Limited, listed on the ASX under the ticker CAR with ordinary fully paid shares, reports its financial performance on a six‑month cycle in line with standard corporate reporting periods. The company’s shareholder base is eligible to receive distributions in Australian dollars according to the timetable set out in its latest declaration.

The company has declared an ordinary dividend of AUD 0.425 per share for the six months ended 31 December 2025, with an ex‑dividend date of 13 March 2026 and record date of 16 March 2026. Payment is scheduled for 13 April 2026, and a dividend reinvestment plan election cutoff of 17 March 2026 offers investors the option to reinvest distributions rather than receive cash.

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 lifts half-year profit and raises interim dividend amid ongoing expansion

CAR Group Limited reported an 8.0% rise in revenue from continuing operations to A$625.8 million for the half year ended 31 December 2025, with statutory net profit after tax up 16.2% to A$152.3 million and net profit attributable to members up 16.1% to A$143.3 million. Adjusted net profit attributable to members, which excludes non-recurring and non-cash items, increased 11.5% to A$196.8 million, underlining solid underlying earnings growth and supporting an interim dividend increase to 42.50 cents per share despite a negative net tangible asset backing per share of 348.40 cents.

The board declared a 2026 interim dividend of 42.50 cents per share, higher than prior dividends, with a record date of 16 March 2026 and payment due on 13 April 2026. The company also restated prior-period net tangible assets to reflect revised fair values from its 2025 U.S. acquisitions Dealership Performance CRM, LLC and Pop Sells, LLC, highlighting ongoing integration of these businesses into CAR Group’s broader automotive technology portfolio and signalling continued investment-led balance sheet impacts alongside growing cash earnings and shareholder returns.

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 Tightens Governance After Late Director Trade Disclosure and Blackout-Period Breach

CAR Group Limited has disclosed a late lodgement of an Appendix 3Y relating to director Edwina Gilbert, after an external investment manager, acting under a discretionary mandate for a testamentary trust connected to Gilbert, acquired 690 CAR Group ordinary shares on various dates between November 2025 and mid-January 2026 without her prior knowledge. One of these trades, a purchase of 105 shares on 14 January 2026, occurred during a blackout period under the company’s securities trading policy, prompting CAR Group to review and strengthen its internal procedures and guidance for directors and employees, while Gilbert has adjusted the administration of the investment mandate to ensure future compliance with disclosure and trading obligations.

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 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.