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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

CAR Group

(Frankfurt:CAR)

Rating:72Outperform
Price Target:
AU$46.00
▲(17.80% Upside)
CAR Group's strong financial performance and bullish technical indicators are the primary drivers of its overall score. However, the high valuation and overbought technical signals suggest caution. The absence of earnings call data and corporate events means these factors do not influence 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 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
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.18B1.18B1.10B781.24M509.08M427.16M
Gross Profit914.20M1.13B769.81M550.89M377.51M327.44M
EBITDA630.95M631.75M585.49M854.68M270.70M242.10M
Net Income275.49M275.49M249.97M645.62M160.82M130.70M
Balance Sheet
Total Assets4.89B4.89B4.67B4.68B1.86B1.16B
Cash, Cash Equivalents and Short-Term Investments289.33M289.33M308.31M198.71M117.45M284.00M
Total Debt1.41B1.41B1.34B1.24B714.17M106.58M
Total Liabilities1.84B1.84B1.73B1.56B847.71M223.09M
Stockholders Equity2.98B2.98B2.88B3.07B1.01B938.74M
Cash Flow
Free Cash Flow484.38M401.22M314.39M167.38M145.67M156.46M
Operating Cash Flow492.49M520.13M416.19M254.38M193.94M189.76M
Investing Cash Flow-230.23M-214.81M-137.61M-1.57B-831.53M-54.13M
Financing Cash Flow-245.53M-331.27M-190.62M1.37B472.26M-30.08M

CAR Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.05
Price Trends
50DMA
38.36
Positive
100DMA
36.76
Positive
200DMA
36.91
Positive
Market Momentum
MACD
0.46
Positive
RSI
46.09
Neutral
STOCH
12.63
Positive
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 39.05 is below the 20-day moving average (MA) of 39.97, above the 50-day MA of 38.36, and above the 200-day MA of 36.91, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 12.63 is Positive, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
AU$14.94B54.179.46%1.97%7.75%10.03%
60
Neutral
$43.83B3.98-12.77%4.14%1.86%-42.71%
$20.93B47.7138.75%1.08%
68
Neutral
$2.80B51.884.88%2.44%12.43%47.92%
42
Neutral
AU$35.60M-150.45%0.72%17.24%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CAR
CAR Group
39.05
3.07
8.54%
RPGRF
REA Group Ltd
158.74
24.35
18.12%
AU:RNT
Rent.com.au Ltd
0.04
0.02
100.00%
AU:DHG
Domain Holdings Australia Ltd.
4.42
1.66
60.14%

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: Aug 20, 2025