REA Group Ltd (REA) AI Stock Analysis

• Market Cap: $32.21B
• Dividend Yield: 0.89%
• Average Volume (3M): 156.86K
• Price to Earnings (P/E): 52.2
• Beta (1Y): 1.25
• Revenue Growth: 20.28%
• EPS Growth: 118.95%
• Country: AU
• Employees: 3,406
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 132,117,220
• 10 Day Avg. Volume: 157,225
• 30 Day Avg. Volume: 156,864
• PEG Ratio: 0.51
• Price to Book (P/B): 17.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.70
• 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: $264.28
• Price Target Upside: 6.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

REA Group Ltd's strong financial performance, characterized by robust revenue and cash flow growth, is overshadowed by technical indicators showing a downtrend and a high valuation. While the company's fundamentals are solid, current market conditions and valuation metrics suggest a cautious stance.

REA Group Ltd Business Overview & Revenue Model

Company Description

REA Group Limited engages in online property advertising business in Australia, India, and internationally. It provides property and property-related services on websites and mobile applications. The company operates residential, commercial, and share property sites, such as realestate.com.au, realcommercial.com.au, smartline.com.au, makaan.com, housing.com, PropTiger.com, realtor.com, Flatmates.com.au, property.com.au, simpology.com.au, campaignagent.com.au, proptrack.com.au, myfun.com, housing.com, propertygurugroup.com, realtor.com, spacely.com.au, rumah123.com, iproperty.com.sg, 99.co, and 1form.com.au. It also provides mortgage brokerage and home financing solutions under the Mortgage Choice brand. The company was formerly known as realestate.com.au Ltd. and changed its name to REA Group Limited in December 2008. REA Group Limited was incorporated in 1995 and is headquartered in Richmond, Australia. REA Group Limited operates as a subsidiary of news corporation.

How the Company Makes Money

REA Group Ltd generates revenue primarily through advertising and subscription fees. The company's key revenue streams include property listings where real estate agents and property developers pay to list properties on its platforms, premium advertising products that enhance visibility and engagement, and subscription services that offer additional tools and data insights to real estate professionals. Additionally, REA Group benefits from strategic partnerships and investments in related digital property businesses, which further contribute to its earnings. The company's robust digital ecosystem and strong market presence enable it to maintain a steady flow of revenue from both recurring and transactional sources.

REA Group Ltd Financial Statement Overview

Summary

REA Group Ltd exhibits strong revenue and cash flow growth with a stable balance sheet. There is a slight pressure on profitability margins, but overall financial health remains robust with good cash generation and manageable leverage.

Income Statement

The company exhibits strong revenue growth, with a noticeable increase from the previous year. The gross profit margin is robust, indicating efficient cost management. However, the net profit margin has decreased slightly, highlighting some pressures on the bottom line.

Balance Sheet

The balance sheet shows moderate leverage with a manageable debt-to-equity ratio. Stockholders' equity has grown, enhancing financial stability. However, a closer watch on the debt levels would ensure sustained equity growth.

Cash Flow

Operating cash flow is strong, outpacing net income, which indicates good cash generation. The free cash flow has grown, supporting potential reinvestments or debt reduction. However, capital expenditures slightly impact free cash flow growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.81B	1.68B	1.39B	1.43B	1.01B	881.86M
	Gross Profit
1.16B	1.08B	636.50M	598.00M	498.40M	441.97M
	EBIT
853.00M	688.20M	548.30M	556.20M	460.10M	409.26M
	EBITDA
790.60M	683.00M	640.60M	649.30M	544.90M	335.31M
	Net Income Common Stockholders
616.70M	302.80M	356.10M	384.80M	322.68M	112.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
338.20M	205.10M	259.80M	248.20M	168.90M	222.84M
	Total Assets
2.70B	2.65B	2.63B	2.57B	2.36B	1.59B
	Total Debt
75.10M	281.20M	403.20M	487.00M	495.60M	327.15M
	Net Debt
-263.10M	77.00M	143.40M	238.80M	326.70M	104.31M
	Total Liabilities
810.80M	1.08B	1.11B	1.21B	1.22B	726.03M
	Stockholders Equity
1.84B	1.54B	1.47B	1.30B	1.07B	864.12M
Cash Flow		Free Cash Flow
637.80M	464.40M	355.10M	392.60M	254.50M	345.79M
	Operating Cash Flow
643.10M	589.40M	472.70M	487.60M	321.40M	419.15M
	Investing Cash Flow
54.00M	-205.20M	-133.60M	-194.70M	-381.50M	-101.17M
	Financing Cash Flow
-674.30M	-439.40M	-329.30M	-219.40M	11.90M	-233.52M

REA Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 247.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REA, the sentiment is Positive. The current price of 247.98 is above the 20-day moving average (MA) of 243.51, above the 50-day MA of 237.34, and above the 200-day MA of 230.17, indicating a bullish trend. The MACD of 2.78 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REA.

REA Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHG	68 Neutral	AU$2.76B	51.29	4.88%	1.37%	12.43%	47.92%
REA	62 Neutral	$32.21B	52.19	37.91%	0.89%	20.28%	118.95%
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%
MEG	40 Underperform	AU$4.62M	―	-52.89%	―	―	-115.28%

REA Group Ltd Corporate Events

News Corporation Releases Q1 2025 Financial Report

News Corporation, a major player in the media industry, has released its quarterly report for the period ending March 31, 2025. The report highlights the company’s financial performance, including consolidated statements of operations, comprehensive income, balance sheets, and cash flows. This release provides stakeholders with insights into the company’s financial health and operational efficiency, reflecting its compliance with regulatory requirements and its continued presence in the global market.

REA Group Reports Robust Q3 Results with Strong Revenue Growth

REA Group Ltd reported strong financial results for the nine months ending March 31, 2025, with an 18% increase in revenue to $1,247 million and a 19% rise in EBITDA excluding associates. The third quarter saw a 12% revenue growth, driven by increased demand following an interest rate cut, which spurred buyer activity and supported house price growth. The company experienced significant growth in its Residential, Commercial, and Financial Services segments, with realestate.com.au strengthening its position as Australia’s top property site, reaching record audiences and extending its lead over competitors.

REA Group Ltd to Release Q3 FY25 Results on May 9

REA Group Ltd announced it will release its Q3 FY25 financial results on May 9, 2025, with a briefing hosted by its CEO and CFO. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

REA Group Ltd Issues Unquoted Securities to Boost Employee Incentives

REA Group Ltd has announced the issuance of unquoted securities under an employee incentive scheme, with a total of 7,444 performance rights being issued. This move is part of the company’s strategy to incentivize and retain employees, potentially impacting its operational efficiency and market positioning positively.

REA Group Ltd Announces Director’s Share Disposition

REA Group Ltd announced a change in the director’s interest, with Owen Wilson, a director of the company, disposing of 1,719 ordinary shares at a value of $275.879 per share. This transaction reflects an update in the director’s holdings but does not involve any acquisition of new securities. Such changes are part of routine reporting to the Australian Securities Exchange and ensure transparency in the company’s governance practices.