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CAR Group Limited (AU:CAR)
:CAR
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CAR Group (CAR) AI Stock Analysis

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AU

CAR Group

(Frankfurt:CAR)

Rating:71Outperform
Price Target:
AU$42.00
▲(13.36%Upside)
The overall score reflects strong financial performance and positive technical indicators, tempered by concerns over valuation. Despite a high P/E ratio, robust revenue and cash flow growth, along with positive market momentum, contribute to a favorable outlook. The absence of recent earnings call data and corporate events does not impact the score.

CAR Group (CAR) vs. iShares MSCI Australia ETF (EWA)

CAR Group Business Overview & Revenue Model

Company DescriptionCAR 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 MoneyCAR Group primarily generates revenue through the sale of passenger and commercial vehicles, including electric vehicles. The company's revenue streams include direct sales to consumers, partnerships with dealerships, and collaborations with fleet operators. Additionally, CAR Group earns income from after-sales services, such as maintenance and repairs, as well as the sale of automotive parts and accessories. Strategic partnerships with technology firms and other automotive manufacturers enhance its product offerings and contribute to its earnings.

CAR Group Financial Statement Overview

Summary
CAR Group displays strong growth in revenue and cash flows, with robust operational efficiencies. Despite some fluctuations in net profit margins and return on equity, the company's financial structure remains sound, supported by a healthy equity base and manageable debt levels.
Income Statement
85
Very Positive
The company has demonstrated strong revenue growth, increasing from $509 million in 2022 to $1.1 billion in 2024. Gross profit margins have remained robust, averaging around 70%. Net profit margin decreased from 82.6% in 2023 to 22.7% in 2024, suggesting potential cost pressures or one-time expenses. The EBIT and EBITDA margins are healthy, reflecting efficient operational management.
Balance Sheet
78
Positive
The debt-to-equity ratio is relatively stable, though slightly high, indicating moderate leverage. Equity ratio has improved, reaching 61.8% in 2024, suggesting a sound financial structure. Return on equity has shown volatility, currently at 8.7%, down from a high of 21% in 2023, indicating fluctuating profitability.
Cash Flow
80
Positive
Operating cash flow has shown significant improvement, increasing from $193 million in 2022 to $416 million in 2024. Free cash flow growth is strong, reflecting improved cash generation capabilities. The operating cash flow to net income ratio stands at 1.67, indicating efficient cash conversion.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.10B781.24M509.08M427.16M394.12M
Gross Profit769.81M550.89M377.51M327.44M295.12M
EBITDA585.49M854.68M270.70M242.10M219.19M
Net Income249.97M645.62M160.82M130.70M114.67M
Balance Sheet
Total Assets4.67B4.68B1.86B1.16B997.60M
Cash, Cash Equivalents and Short-Term Investments308.31M198.71M117.45M284.00M179.94M
Total Debt1.34B1.24B714.17M106.58M605.22M
Total Liabilities1.73B1.56B847.71M223.09M706.04M
Stockholders Equity2.88B3.07B1.01B938.74M290.80M
Cash Flow
Free Cash Flow314.39M167.38M145.67M156.46M123.63M
Operating Cash Flow416.19M254.38M193.94M189.76M157.22M
Investing Cash Flow-137.61M-1.57B-831.53M-54.13M-34.85M
Financing Cash Flow-190.62M1.37B472.26M-30.08M-39.40M

CAR Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.05
Price Trends
50DMA
36.52
Positive
100DMA
35.09
Positive
200DMA
36.68
Positive
Market Momentum
MACD
0.28
Positive
RSI
57.67
Neutral
STOCH
67.06
Neutral
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 37.05 is above the 20-day moving average (MA) of 37.05, above the 50-day MA of 36.52, and above the 200-day MA of 36.68, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 67.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CAR.

CAR Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCAR
71
Outperform
AU$14.26B55.528.51%2.08%17.01%-26.92%
61
Neutral
€3.44B-0.773.90%5.61%5.62%-157.00%
$20.63B50.4437.91%0.75%
AUDHG
68
Neutral
AU$2.78B51.644.88%1.36%12.43%47.92%
AURNT
45
Neutral
AU$25.91M-103.20%5.14%26.39%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CAR
CAR Group
37.05
2.66
7.72%
RPGRF
REA Group Ltd
156.64
27.73
21.51%
AU:RNT
Rent.com.au Ltd
0.03
<0.01
50.00%
AU:DHG
Domain Holdings Australia Ltd.
4.40
1.26
40.13%

CAR Group Corporate Events

CAR Group Announces Leadership Transition with New CEO Appointment
Jul 16, 2025

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
Jul 9, 2025

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
Jun 20, 2025

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
Jun 16, 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
May 30, 2025

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
May 12, 2025

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.

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.Date of analysis: Jul 19, 2025