REA Group Ltd (AU:REA)
ASX:REA
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REA Group Ltd
(Sydney:REA)
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Rating:65Neutral
Price Target:
AU$151.00
▼(-13.54% Downside)
Action:Reiterated
Date:06/06/26
The score is primarily supported by strong underlying financial performance (high profitability and conservative leverage), but is held back by weakening technical trends and a relatively high valuation (P/E 36.59) with only a modest dividend yield.
Positive Factors
High profitability margins
Sustained very high gross and strong net/EBITDA margins reflect a low-cost digital marketplace model and pricing power. Those margins support reinvestment in product, durable cash generation and greater resilience to cyclical revenue swings over the next several quarters.
Negative Factors
Declining free cash flow growth
A persistent decline in FCF growth reduces internal funding for R&D, acquisitions or shareholder returns. If the downtrend continues it could constrain strategic flexibility and force higher reliance on earnings or external financing to support long-term initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Sustained very high gross and strong net/EBITDA margins reflect a low-cost digital marketplace model and pricing power. Those margins support reinvestment in product, durable cash generation and greater resilience to cyclical revenue swings over the next several quarters.
Read all positive factors
REA Group Ltd (REA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$18.92B
Dividend Yield1.33%
Average Volume (3M)249.67K
Price to Earnings (P/E)32.4
Beta (1Y)0.83
Revenue Growth7.96%
EPS Growth-7.10%
CountryAU
Employees3,406
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)4.34
Shares Outstanding130,859,820
10 Day Avg. Volume245,328
30 Day Avg. Volume249,671
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)16.61
Price to Sales (P/S)16.47
P/FCF Ratio59.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$191.02Price Target Upside9.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.83
Revenue Forecast (FY)AU$1.79B
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:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented solid financial results (revenue +5%, EBITDA +6%, NPAT +9%), strong audience and engagement gains, clear momentum in AI adoption and product innovation, and proactive capital returns (dividend +13% and $200m buyback). Offsetting these positives were persistent listing volume weakness (notably in smaller capitals), geo mix uncertainty that could affect yield, increased operating costs from wage inflation and tech/licensing, and continued losses in India. On balance the company showed operational strength, disciplined capital management and confidence in AI-driven product levers, while acknowledging near-term regional listing challenges and cost pressures.Positive Updates
Revenue, EBITDA and Profit Growth
Group revenue increased 5% year-on-year to $916 million; EBITDA excluding associates rose 6% to $569 million; net profit after tax grew 9% to $341 million (H1 FY26).
Negative Updates
National Listing Volume Weakness and Two-Speed Market
National new buy listings declined 6% for the half (January down 8% YoY). Smaller capitals softened: Brisbane down ~12% and Perth down ~20% in the half, creating geo mix headwinds and prompting updated guidance that national residential buy listings are expected to decline 1%–3% for FY26.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue, EBITDA and Profit Growth
Group revenue increased 5% year-on-year to $916 million; EBITDA excluding associates rose 6% to $569 million; net profit after tax grew 9% to $341 million (H1 FY26).
Read all positive updates
Company Guidance
Management guided that FY‑26 national residential buy listings are expected to decline 1–3%, with residential buy yield growth of 12–14%; they expect mid‑single‑digit group operating expense growth (Australia high single‑digit) with Australian jaws modestly open and underlying OpEx growth at high single digits, India EBITDA losses of $40–45m and associates’ losses marginally improved vs FY‑25; capex is expected near the midpoint of the 7–9% of revenue target (H1 was 7%), FY‑26 depreciation & amortisation $138–147m, and the company finished H1 with $478m cash and $373m operating cash flow — capital returned to shareholders includes a $1.24 interim dividend (up 13%) and an on‑market buyback of up to $200m.REA Group Ltd Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 1.93B | 1.68B | 1.39B | 1.43B | 1.01B |
| Gross Profit | 884.20M | 1.86B | 1.08B | 636.50M | 598.00M | 498.40M |
| EBITDA | 1.00B | 1.06B | 683.00M | 622.20M | 649.30M | 544.90M |
| Net Income | 572.90M | 677.90M | 302.80M | 356.10M | 384.80M | 322.68M |
Balance Sheet | ||||||
| Total Assets | 2.97B | 2.83B | 2.65B | 2.63B | 2.57B | 2.36B |
| Cash, Cash Equivalents and Short-Term Investments | 478.40M | 428.80M | 205.10M | 259.80M | 248.20M | 168.90M |
| Total Debt | 176.00M | 70.70M | 281.20M | 403.20M | 487.00M | 495.60M |
| Total Liabilities | 873.80M | 881.30M | 1.08B | 1.11B | 1.21B | 1.22B |
| Stockholders Equity | 2.06B | 1.91B | 1.54B | 1.47B | 1.30B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 717.70M | 537.40M | 464.40M | 355.10M | 392.60M | 254.50M |
| Operating Cash Flow | 723.20M | 675.40M | 589.40M | 472.70M | 487.60M | 321.40M |
| Investing Cash Flow | -207.10M | 71.10M | -205.20M | -133.60M | -194.70M | -381.50M |
| Financing Cash Flow | -373.00M | -521.60M | -439.40M | -329.30M | -219.40M | 11.90M |
REA Group Ltd Technical Analysis
Negative
174.65
Price Trends
161.42
Negative
163.38
Negative
184.58
Negative
Market Momentum
-5.29
Positive
29.84
Positive
17.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REA, the sentiment is Negative. The current price of 174.65 is above the 20-day moving average (MA) of 149.83, above the 50-day MA of 161.42, and below the 200-day MA of 184.58, indicating a bearish trend. The MACD of -5.29 indicates Positive momentum. The RSI at 29.84 is Positive, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$18.92B | 32.42 | 28.87% | 1.33% | 7.96% | -7.10% | |
62 Neutral | AU$10.53B | 35.54 | 10.19% | 2.57% | 7.24% | 14.99% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | AU$21.74M | -7.16 | -23.03% | ― | ― | -249.05% | |
46 Neutral | AU$102.72M | -3.02 | -550.33% | ― | 14.49% | -66.27% | |
45 Neutral | AU$16.45M | -1.41 | -28.72% | ― | -5.31% | 7.89% | |
43 Neutral | AU$80.05M | -15.06 | -76.28% | ― | 20.25% | 5.66% |
* Communication Services Sector Average
AU:REA
REA Group Ltd
140.08
-90.20
-39.17%
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REA Group Ltd Corporate Events
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...
REA Group continues daily on‑market share buy‑back program
May 12, 2026
REA Group Ltd has notified the market of continued activity under its on‑market share buy‑back program, targeting its ordinary fully paid shares trading under the ASX code REA. The disclosure forms part of a series of daily updates, re...
REA Group Continues On-Market Share Buy-Back Program
May 11, 2026
REA Group Ltd has issued 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 total of 472,611 shares had been repurchased prior to the latest rep...
News Corporation Files Form 10-Q for March 31, 2026 Quarter
May 10, 2026
News Corporation has filed its quarterly report on Form 10-Q for the period ended March 31, 2026, confirming it remains a large accelerated filer and is in full compliance with U.S. Securities Exchange Act reporting requirements. The filing detail...
REA Group tightens securities dealing rules as it deepens global proptech footprint
May 8, 2026
REA Group Ltd, the ASX-listed digital property advertising company behind realestate.com.au and realcommercial.com.au, has broadened its ecosystem across mortgages, property data, vendor finance and real estate transaction technology, supported by...
REA Group lifts Q3 revenue and margins on robust property demand
May 8, 2026
REA Group reported a strong third quarter for fiscal 2026, with core revenue rising 11% excluding MA, operating expenses up 5% and EBITDA expanding 16% on the same basis. Australian revenue grew 12% as residential revenue benefited from 14% yield ...
REA Group sets 8 May date to unveil Q3 FY26 results
Apr 19, 2026
REA Group Ltd will release its financial results for the quarter ended 31 March 2026 on 8 May 2026 and will host a results briefing that morning led by Chief Executive Officer Cameron McIntyre and Chief Financial Officer Andrew Cramer. A full reco...
REA Group cancels 255,504 shares following on-market buy-back
Apr 7, 2026
REA Group Ltd has cancelled 255,504 ordinary fully paid shares following completion of an on-market buy-back conducted on 2 April 2026. The reduction in issued capital marginally increases the ownership percentage of remaining shareholders and ref...
REA Group Issues New Performance Rights Under Employee Incentive Plan
Apr 7, 2026
REA Group Ltd has notified the market of the issue of 900 unquoted performance rights under its employee incentive scheme, with an issue date of 16 February 2026. The new rights, which are subject to transfer restrictions and will not be quoted on...
REA Group Reports Lapse of 8,746 Performance Rights
Apr 7, 2026
REA Group Ltd has notified the market of the cessation of several tranches of performance rights, all carrying the ASX code REAAA, following the lapse of conditional rights to securities. The rights, totaling 8,746 securities, lapsed between 11 Fe...
REA Group Provides Daily Update on Ongoing On‑Market Share Buy‑Back
Apr 1, 2026
REA Group Ltd has continued executing its on-market share buy-back, disclosing that it repurchased 33,352 ordinary fully paid shares on the previous trading day, bringing the cumulative total bought back to 439,259 shares. The daily notification u...
REA Group Reports Latest Daily Activity in Ongoing On-Market Share Buy-Back
Mar 30, 2026
REA Group Ltd, the ASX-listed digital real estate advertising company, continues to focus on capital management through its on-market share buy-back program targeting its ordinary fully paid shares. The company’s core operations center on on...
REA Group Issues Daily Update on Ongoing On-Market Share Buy-Back
Mar 29, 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, trading under the code REA. The company reported that a cumulative total of 385,064 shares had...
REA Group Updates Market on Progress of On‑Market Share Buy‑Back
Mar 25, 2026
REA Group Ltd has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back of ordinary fully paid shares. The latest daily report shows the company has repurchased a cumulative 354,941 shares prior to ...
REA Group updates market on daily on‑market share buy-back
Mar 24, 2026
REA Group Ltd has continued its on-market share buy-back program, focusing on its ordinary fully paid shares traded on the ASX under the code REA. The company reported that it had repurchased a total of 330,088 shares prior to the latest trading d...
REA Group issues daily update on ongoing on-market share buy-back
Mar 23, 2026
REA Group Ltd has provided an updated daily notification on its ongoing on-market share buy-back, covering ordinary fully paid shares under its existing capital management program. The company reported that it had repurchased a cumulative total of...
REA Group Reports Ongoing On-Market Share Buy-Back Activity
Mar 22, 2026
REA Group Ltd has disclosed an update to its on-market share buy-back program involving its ordinary fully paid shares traded under the ASX code REA. The company reported that a total of 258,090 shares had been repurchased prior to the latest repo...
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.