REA Group Ltd (REA) AI Stock Analysis

• Market Cap: AU$34.07B
• Dividend Yield: 0.98%
• Average Volume (3M): 176.38K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 1.14
• Revenue Growth: 13.09%
• EPS Growth: 123.97%
• Country: AU
• Employees: 3,406
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 1.90
• Shares Outstanding: 132,117,220
• 10 Day Avg. Volume: 176,368
• 30 Day Avg. Volume: 176,382
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: AU$264.57
• Price Target Upside: 4.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: AU$291.00 ▲(14.73% Upside)

REA Group Ltd's strong financial performance and bullish technical indicators are the primary drivers of its stock score. The company demonstrates robust revenue growth and high profitability, supported by a stable balance sheet. However, the high P/E ratio suggests the stock is overvalued, which could limit future gains. The technical analysis indicates strong momentum, although caution is advised due to potential overbought conditions.

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 makes money primarily through advertising revenues generated from real estate agents and property developers who list properties on its platforms. The company offers a range of listing products that enhance property visibility and attract more potential buyers or renters. Additionally, REA Group generates income through premium subscriptions, data services, and value-added services such as mortgage broking and financial services. Strategic partnerships and acquisitions further bolster its revenue streams by expanding its digital property ecosystem and service offerings.

REA Group Ltd Financial Statement Overview

Summary

REA Group Ltd exhibits strong financial health with robust revenue growth, high profitability margins, and a stable balance sheet. The company effectively manages its leverage, maintaining a low debt-to-equity ratio, and achieves high returns on equity. While cash flow generation is strong, the recent decline in free cash flow growth is a potential area of concern. Overall, the company is well-positioned financially, with a strong market presence and efficient operations.

Income Statement

REA Group Ltd has demonstrated strong revenue growth with a 6.39% increase in the latest year, supported by a high gross profit margin of 96.54% and a solid net profit margin of 35.15%. The EBIT and EBITDA margins are robust at 41.29% and 55.06%, respectively, indicating efficient operations and profitability. The consistent revenue growth trajectory and high profitability margins highlight the company's strong market position and operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.04, reflecting conservative leverage. The return on equity (ROE) is impressive at 35.44%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 67.49%, indicating a strong equity base relative to total assets, which enhances financial stability. Overall, the balance sheet reflects a stable financial position with prudent financial management.

Cash Flow

Operating cash flow is strong, with a ratio of 0.996 to net income, indicating good cash generation relative to profits. However, the free cash flow growth rate has declined by 15.74%, which could be a concern if it persists. The free cash flow to net income ratio is 0.79, suggesting that a significant portion of earnings is converted into free cash flow. While cash flow generation is solid, the recent decline in free cash flow growth warrants monitoring.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.93B	1.68B	1.39B	1.43B	1.01B
Gross Profit	1.01B	1.86B	1.08B	636.50M	598.00M	498.40M
EBITDA	937.20M	1.06B	683.00M	640.60M	649.30M	544.90M
Net Income	677.90M	677.90M	302.80M	356.10M	384.80M	322.68M
Balance Sheet
Total Assets	2.83B	2.83B	2.65B	2.63B	2.57B	2.36B
Cash, Cash Equivalents and Short-Term Investments	428.80M	428.80M	205.10M	259.80M	248.20M	168.90M
Total Debt	70.70M	70.70M	281.20M	403.20M	487.00M	495.60M
Total Liabilities	881.30M	881.30M	1.08B	1.11B	1.21B	1.22B
Stockholders Equity	1.91B	1.91B	1.54B	1.47B	1.30B	1.07B
Cash Flow
Free Cash Flow	669.10M	537.40M	464.40M	355.10M	392.60M	254.50M
Operating Cash Flow	675.40M	675.40M	589.40M	472.70M	487.60M	321.40M
Investing Cash Flow	71.10M	71.10M	-205.20M	-133.60M	-194.70M	-381.50M
Financing Cash Flow	-521.60M	-521.60M	-439.40M	-329.30M	-219.40M	11.90M

REA Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 253.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 253.63 is above the 20-day moving average (MA) of 250.94, above the 50-day MA of 241.66, and above the 200-day MA of 241.83, indicating a bullish trend. The MACD of 5.42 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 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
REA	73 Outperform	AU$34.07B	50.24	38.75%	0.98%	13.09%	123.97%
DHG	68 Neutral	AU$2.80B	51.88	4.88%	2.44%	12.43%	47.92%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
RMY	46 Neutral	AU$26.57M	―	-910.77%	―	3.67%	72.22%

REA Group Ltd Corporate Events

REA Group Announces 2025 AGM Date and Director Nomination Deadline

REA Group Ltd has announced that its 2025 annual general meeting will be held on October 9, 2025. The company has set August 7, 2025, as the deadline for director nominations. Details regarding shareholder participation will be communicated in September. This announcement outlines important dates for stakeholders and ensures transparency in the company’s governance process.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$220.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Ltd to Announce Full-Year Financial Results on August 6, 2025

REA Group Ltd has announced that it will release its full-year financial results for the year ending June 30, 2025, on August 6, 2025. The announcement will be accompanied by a results briefing hosted by the company’s CEO and CFO, which will be accessible via webcast. This release is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$230.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Director Adjusts Shareholding Portfolio

REA Group Ltd has announced a change in the director’s interest notice, indicating that Owen Wilson, a director, has disposed of 2,522 ordinary shares valued at $613,985.97. This transaction involves shares held indirectly through the Blue Chip Investment Trust, reflecting a strategic adjustment in the director’s personal investment portfolio, which may influence stakeholder perceptions of the company’s stock performance.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$220.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Ltd Responds to ACCC Investigation Notice

REA Group Ltd has confirmed receiving a notice from the Australian Competition and Consumer Commission (ACCC) requesting information about certain subscription offerings. The company is cooperating fully with the ACCC and remains committed to providing value and flexibility to its customers. REA Group’s operations are supported by a significant online presence, with millions of users visiting its platforms monthly. The outcome of the investigation could impact the company’s market positioning and stakeholder interests, although REA has stated it will continue to fulfill its disclosure obligations.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$220.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

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.