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REA Group Ltd
(Sydney:REA)
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Rating:80Outperform
Price Target:
AU$200.00
▲(31.72% Upside)
Action:Upgraded
Date:08/10/26
The score is driven primarily by strong financial quality—robust margins, excellent cash generation, and a very low-leverage balance sheet. Technicals are supportive with an established uptrend, though momentum indicators are near stretched levels. The main offset is valuation (high P/E with a modest yield), and guidance points to softer listings and continued uncertainty despite solid product momentum and capital returns.
Positive Factors
Cash generation
High and consistent cash conversion (FCF roughly matching net income and OCF > net income historically) underpins durable self‑funding for product investment, dividends and buybacks. Strong cash generation reduces refinancing risk and supports capital allocation optionality over 2–6 months.
Negative Factors
Listings volume weakness
Listings are the core demand driver for listings/advertising revenue; guidance for flat-to-down listings implies fewer paid placement opportunities and puts structural pressure on top‑line growth. Geographic mix swings amplify reported yield variability across quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
High and consistent cash conversion (FCF roughly matching net income and OCF > net income historically) underpins durable self‑funding for product investment, dividends and buybacks. Strong cash generation reduces refinancing risk and supports capital allocation optionality over 2–6 months.
Read all positive factors
REA Group Ltd (REA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$23.21B
Dividend Yield1.46%
Average Volume (3M)249.67K
Price to Earnings (P/E)42.1
Beta (1Y)0.95
Revenue Growth4.24%
EPS Growth-18.52%
CountryAU
Employees1,921
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)4.19
Shares Outstanding130,859,820
10 Day Avg. Volume245,328
30 Day Avg. Volume249,671
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)9.67
Price to Sales (P/S)9.28
P/FCF Ratio23.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$190.48Price Target Upside25.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.5
Revenue Forecast (FY)AU$1.90B
REA Group Ltd Business Overview & Revenue Model
Company Description
REA Group Limited functions as a global digital media enterprise primarily focused on online property advertising and associated services. The company delivers extensive property solutions via its diverse array of websites and mobile applications,...
How the Company Makes Money
REA Group primarily makes money by selling digital advertising and subscription-style products to real estate agents, property developers, and other listing customers on its property portals. The core revenue stream is listings and related adverti...
REA Group Ltd Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted a strong financial year with double‑digit growth across key metrics (EBITDA +12%, NPAT +15%, FCF +17%), record audience and significant product and AI progress. Management demonstrated disciplined cost control, margin expansion and robust capital returns (higher dividends and a $200M buyback). Headwinds remain—flat-to‑slightly‑lower listings guided for FY'27, macro uncertainty from recent rate rises and tax changes, a material $111M India impairment and ongoing geo mix volatility. Early‑stage AI monetization and some elevated operating cost categories introduce near‑term execution and timing risks. Overall, the positive financial performance, strong cash generation and clear product momentum outweigh the listed challenges, but the company acknowledges continuing macro and operational uncertainties into FY'27.Positive Updates
Strong Group Financial Performance
Revenue up 7% year‑on‑year to $1.79 billion; EBITDA (excluding associates) up 12% to $1.09 billion; NPAT up 15% to $650 million; EPS up 15% to $4.93; free cash flow up 17% to $628 million.
Negative Updates
Listings Volume Weakness and Guidance
National buyer listings were flat in FY'26 and are guided to be flat to down low single digits for FY'27; July listings were 2% lower y/y, combined Melbourne and Sydney listings declined 16% in July, and geo mix volatility remains a key swing factor for reported yields.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Group Financial Performance
Revenue up 7% year‑on‑year to $1.79 billion; EBITDA (excluding associates) up 12% to $1.09 billion; NPAT up 15% to $650 million; EPS up 15% to $4.93; free cash flow up 17% to $628 million.
Read all positive updates
Company Guidance
Guidance for FY'27: REA expects new national buyer listings to be flat to down low-single-digits (July was -2% year‑on‑year and in line with the 8‑year average, with combined Sydney+Melbourne down 16% in July while Brisbane/Perth/Adelaide were up 13%), with controllable residential buy yield growth (excluding geo mix) targeted in the low double‑digits driven by an 8% Premiere+ price rise and stronger add‑ons (with Luxe flagged as a larger contributor than AMAX); the group will target operational margin expansion while Australian operating costs (ex iGUIDE/Simplicity M&A) are expected to rise mid‑single‑digits and group operating costs including M&A mid‑ to high‑single‑digits on a continuing‑business basis off a FY'26 base of $609m; CapEx to revenue is anticipated to remain within the 7–9% target range, contributions from associates should improve modestly, geo mix is the main swing factor, India is now treated as discontinued, and the balance sheet/optionality remain strong.REA Group Ltd Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.98B | 1.93B | 1.68B | 1.39B | 1.43B |
| Gross Profit | 997.90M | 1.86B | 1.08B | 636.50M | 598.00M |
| EBITDA | 1.08B | 1.06B | 683.00M | 622.20M | 649.30M |
| Net Income | 551.60M | 677.90M | 302.80M | 356.10M | 384.80M |
Balance Sheet | |||||
| Total Assets | 2.96B | 2.83B | 2.65B | 2.63B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 365.60M | 428.80M | 205.10M | 259.80M | 248.20M |
| Total Debt | 75.60M | 70.70M | 281.20M | 403.20M | 487.00M |
| Total Liabilities | 1.05B | 881.30M | 1.08B | 1.11B | 1.21B |
| Stockholders Equity | 1.90B | 1.91B | 1.54B | 1.47B | 1.30B |
Cash Flow | |||||
| Free Cash Flow | 765.10M | 537.40M | 464.40M | 355.10M | 392.60M |
| Operating Cash Flow | 771.40M | 675.40M | 589.40M | 472.70M | 487.60M |
| Investing Cash Flow | -251.90M | 71.10M | -205.20M | -133.60M | -194.70M |
| Financing Cash Flow | -576.30M | -521.60M | -439.40M | -329.30M | -219.40M |
REA Group Ltd Technical Analysis
Positive
151.84
Price Trends
153.64
Positive
158.54
Positive
170.15
Positive
Market Momentum
6.80
Negative
69.04
Neutral
82.77
Negative
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 151.84 is below the 20-day moving average (MA) of 167.21, below the 50-day MA of 153.64, and below the 200-day MA of 170.15, indicating a bullish trend. The MACD of 6.80 indicates Negative momentum. The RSI at 69.04 is Neutral, neither overbought nor oversold. The STOCH value of 82.77 is Negative, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$23.21B | 42.13 | 27.90% | 1.71% | 4.24% | -18.52% | |
74 Outperform | AU$11.21B | 35.18 | 11.28% | 3.45% | 5.88% | 13.64% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | AU$26.83M | -4.36 | -47.13% | ― | ― | -249.05% | |
47 Neutral | AU$18.09M | -1.41 | -28.72% | ― | -5.31% | 7.89% | |
46 Neutral | AU$77.00M | -13.20 | -76.28% | ― | 20.25% | 5.66% | |
46 Neutral | AU$102.75M | -3.07 | -550.33% | ― | 14.49% | -66.27% |
* Communication Services Sector Average
AU:REA
REA Group Ltd
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REA Group Ltd Corporate Events
REA Group CEO adjusts equity holdings as performance rights lapse and vest
Aug 11, 2026
REA Group has disclosed changes to Chief Executive Cameron McIntyre’s holdings, detailing movements in his performance rights and ordinary shares. The update shows some FY26 sign-on performance rights lapsed after performance conditions were...
REA Group Issues New Shares Following Option Conversions
Aug 11, 2026
REA Group Ltd operates as a digital real estate advertising and listings business, best known for its online property platforms that connect buyers, sellers, renters and agents. The company focuses on the Australian market through its ASX-listed s...
REA Group reports lapse of performance rights
Aug 11, 2026
REA Group Ltd has notified the market of the cessation of 314 performance rights, recorded under ASX security code REAAA. These rights lapsed after the conditional entitlement to securities was not met, or became incapable of being satisfied, with...
News Corporation files 2026 Form 10-K, affirms status as major SEC registrant
Aug 9, 2026
News Corporation has filed its annual Form 10-K for the fiscal year ended June 30, 2026, confirming it remains a large accelerated filer and a well-known seasoned issuer under U.S. securities regulations. The filing details its compliance with rep...
REA Group Sets Out 2026 Corporate Governance Framework
Aug 5, 2026
REA Group Ltd has detailed its corporate governance framework for 2026, outlining how it aligns with the 4th edition of the ASX Corporate Governance Council’s Principles and Recommendations to support lawful, ethical and responsible conduct....
REA Group publishes FY26 investor presentation
Aug 5, 2026
REA Group Ltd has released its full-year FY26 investor and analyst presentation for the year ended 30 June 2026, providing the market with detailed results and operational insights. The presentation is intended for shareholders, analysts and other...
REA Group posts strong FY26 earnings and doubles down on AI and diversification
Aug 5, 2026
REA Group reported strong FY26 core operations, with revenue rising 7% to $1.79 billion and EBITDA up 12%, driven largely by 11% growth in Australian revenue and disciplined cost control. Net profit from core operations increased 15%, free cash fl...
REA Group announces AUD 1.73 interim dividend for half‑year to June 2026
Aug 5, 2026
REA Group Ltd has declared a six‑month dividend of AUD 1.73 per ordinary fully paid share for the period ended 30 June 2026, according to an announcement lodged on 6 August 2026. The dividend will trade ex‑dividend on 27 August, with a...
REA Group lifts core earnings and dividend as FY26 results released
Aug 5, 2026
REA Group has released its Appendix 4E and 2026 Annual Report for the year ended 30 June 2026, detailing audited financial statements, directors’ and sustainability reports for investors and other stakeholders. The materials, authorised by t...
REA Group sets date and timetable for 2026 annual general meeting
Jul 28, 2026
REA Group Ltd has scheduled its 2026 annual general meeting of shareholders for 8 October 2026 at 9:00am AEDT, confirming key governance dates for investors. The company has set 6 August 2026 as the deadline for director nomination submissions, wi...
REA Group sets August date for full-year 2026 results briefing
Jul 22, 2026
REA Group Ltd has scheduled the release of its full-year results for the period ended 30 June 2026, with the announcement and investor briefing to be held on 6 August 2026. The webcast, hosted by CEO Cameron McIntyre and CFO Andrew Cramer, will be...
REA Group Reports Lapse of Performance Rights with Minimal Capital Impact
Jul 5, 2026
REA Group Ltd has notified the market of the cessation of a small number of performance rights, following the lapse of conditional entitlements that could no longer be satisfied. The company reported that 1,796 performance rights under the REAAA c...
REA Group Issues New Unquoted Performance Rights Under Employee Incentive Plan
Jul 5, 2026
REA Group Ltd has notified the market of the issue of 1,332 unquoted performance rights under its employee incentive scheme, with the securities issued on 29 June 2026 and recorded in an Appendix 3G filing. These performance rights are subject to ...
REA Group to Replace Retiring Non-Executive Director Kelly Bayer Rosmarin
Jun 26, 2026
REA Group has announced that independent Non-executive Director Kelly Bayer Rosmarin will retire from the board at the 8 October 2026 AGM after nearly five years of service, stepping down to focus on her full-time executive commitments. Chairman H...
REA Group Cancels 261,130 Shares Under On-Market Buyback
Jun 16, 2026
REA Group Ltd has cancelled 261,130 ordinary fully paid shares following completion of an on-market buyback, as disclosed in its Appendix 3H notification to the ASX dated 16 June 2026. The reduction in issued capital marginally increases the owner...
REA Group Issues Daily Update on Ongoing On-Market Share Buy-Back
Jun 8, 2026
REA Group Ltd has notified the market of an update to its on-market share buy-back for its ordinary fully paid securities traded under the ASX code REA. The company reported that a total of 1,124,370 shares had been bought back prior to the previo...
REA Group Posts Daily Update on Ongoing On-Market Share Buy-Back
Jun 4, 2026
REA Group Ltd has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that a cumulative total of 1,102,263 shares had been repurchased before t...
REA Group Provides Daily Update on Ongoing On‑Market Share Buy‑Back
Jun 3, 2026
REA Group Ltd has reported an update to its on‑market share buy‑back program, confirming that a total of 1,088,422 ordinary fully paid shares had been repurchased prior to the latest reporting date. The company disclosed that a further...
REA Group Updates Market on Progress of On‑Market Share Buy‑Back
Jun 2, 2026
REA Group Ltd has reported an update to its on-market share buy-back program, confirming a cumulative total of 1,068,683 ordinary fully paid shares repurchased prior to the most recent trading day. The company disclosed that an additional 19,739 s...
REA Group Cuts Share Count After On-Market Buy-Back
May 29, 2026
REA Group Ltd has updated the market on changes to its capital structure, confirming that 523,664 ordinary fully paid shares have ceased to exist on its register. The shares were cancelled following an on-market buy-back completed on 28 May 2026, ...
REA Group Continues Daily On‑Market Share Buy-Back Program
May 27, 2026
REA Group Ltd has provided an update on its on-market share buy-back program involving its ordinary fully paid shares listed on the ASX under the code REA. The company reported that it had repurchased a cumulative 996,275 shares prior to the lates...
REA Group Updates Market on Progress of On-Market Share Buy-Back
May 26, 2026
REA Group Ltd has reported the latest daily activity in its on-market share buy-back program for its ordinary fully paid shares, disclosing that a total of 976,870 securities had been repurchased before the previous day and a further 19,405 shares...
REA Group Issues Daily Update on Ongoing Share Buy-Back Program
May 25, 2026
REA Group Ltd has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that, as of the latest daily update, it had repurchased a total of 904,36...
REA Group Provides Daily Update on Ongoing On-Market Share Buy-Back
May 22, 2026
REA Group Ltd has reported an update on its on-market share buy-back program covering its ordinary fully paid shares traded under ASX code REA. The company disclosed that, as of the latest daily notification dated 22 May 2026, it had repurchased a...
REA Group Updates Market on Progress of On-Market Share Buy-Back
May 21, 2026
REA Group Ltd has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that a cumulative 756,749 shares had been repurchased prior to the latest...
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.