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REA Group Ltd (AU:REA)
ASX:REA

REA Group Ltd (REA) AI Stock Analysis

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AU:REA

REA Group Ltd

(Sydney:REA)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
AU$200.00
▲(4.27% Upside)
REA Group Ltd's overall stock score is primarily influenced by its strong financial performance, characterized by robust revenue growth and profitability margins. However, the technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation suggests the stock is relatively expensive, which may limit upside potential. The absence of earnings call data and corporate events means these factors do not impact the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business model, enhancing long-term financial stability.
Profitability Margins
High profitability margins reflect operational efficiency and market strength, supporting sustained earnings and competitive advantage.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth opportunities.
Negative Factors
Free Cash Flow Decline
A decline in free cash flow growth may impact the company's ability to invest in new opportunities and return capital to shareholders.
Cash Flow Conversion
Lower cash flow conversion could limit financial flexibility, affecting the company's capacity to fund operations and growth initiatives.
Market Valuation Concerns
High valuation may limit upside potential and attract scrutiny, potentially affecting investor sentiment and future capital raising.

REA Group Ltd (REA) vs. iShares MSCI Australia ETF (EWA)

REA Group Ltd Business Overview & Revenue Model

Company DescriptionREA 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 MoneyREA Group generates revenue primarily through its advertising services. Real estate agents and developers pay to list properties on REA's platforms, with various pricing models that include pay-per-click and subscription-based services. The company also earns income from premium listings, which allow sellers to enhance the visibility of their properties. Furthermore, REA has diversified its revenue streams by providing data and analytics services, as well as expanding into adjacent markets like financial services through partnerships with mortgage and insurance companies. Significant partnerships in the real estate and finance sectors also contribute to its earnings by enhancing service offerings and increasing user engagement.

REA Group Ltd Earnings Call Summary

Earnings Call Date:Nov 07, 2024
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue and audience growth and strategic investments in key areas like financial services and REA India. However, challenges such as the failed Rightmove acquisition and issues in the U.S. market were noted.
Q1-2025 Updates
Positive Updates
Record Revenue and EBITDA Growth
REA Group reported a revenue increase of 21% to $413 million and an EBITDA growth of 23% to $243 million for Q1 2025.
Residential and Commercial Listings Surge
Listings were up year-on-year, with Brisbane and Perth matching the growth in Sydney and Melbourne, contributing to strong performance in the residential and commercial sectors.
Increased Audience Engagement
Reaching a record 11.9 million monthly visitors on realestate.com.au, with over 1 million logged-in members in a single day.
Strong Growth in Financial Services
Financial Services achieved a 13% year-on-year increase in submission volumes and strong revenue growth driven by Mortgage Choice Freedom.
REA India Revenue Growth
REA India reported a 42% increase in revenue, driven by Housing Edge platform strength and the core Housing.com business.
Negative Updates
Rightmove Acquisition Withdrawal
REA Group had to withdraw its bid for Rightmove due to lack of engagement, incurring $18 million in one-off legal costs.
PropTiger Revenue Decline
PropTiger revenues were impacted by strong property market conditions leading to less need for developer brokers.
Challenging U.S. Market Conditions
The group's associate, Move, faced a 1% decline in revenue due to continued challenging market conditions in the U.S.
Company Guidance
During the REA Group's Q1 2025 earnings call, the executives reported robust financial performance with revenue rising by 21% to $413 million and EBITDA up by 23% to $243 million, excluding associates. The company experienced double-digit yield growth and a significant increase in listings, with residential buy yield growing by 15%. The platform's audience also expanded, achieving a record 11.9 million monthly visitors. Additionally, seller lead volumes surged by 80% year-on-year, while Pro subscription uptake grew by 28%. In the financial services segment, submission volumes increased by 13%, and REA India saw a revenue boost of 42%. Despite the strong performance, there was a 1% geo mix drag in yield, and the company's attempted acquisition of Rightmove was unsuccessful.

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.
Income Statement
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.90B1.93B1.68B1.39B1.43B1.01B
Gross Profit1.01B1.86B1.08B636.50M598.00M498.40M
EBITDA937.20M1.06B683.00M622.20M649.30M544.90M
Net Income677.90M677.90M302.80M356.10M384.80M322.68M
Balance Sheet
Total Assets2.83B2.83B2.65B2.63B2.57B2.36B
Cash, Cash Equivalents and Short-Term Investments428.80M428.80M205.10M259.80M248.20M168.90M
Total Debt70.70M70.70M281.20M403.20M487.00M495.60M
Total Liabilities881.30M881.30M1.08B1.11B1.21B1.22B
Stockholders Equity1.91B1.91B1.54B1.47B1.30B1.07B
Cash Flow
Free Cash Flow669.10M537.40M464.40M355.10M392.60M254.50M
Operating Cash Flow675.40M675.40M589.40M472.70M487.60M321.40M
Investing Cash Flow71.10M71.10M-205.20M-133.60M-194.70M-381.50M
Financing Cash Flow-521.60M-521.60M-439.40M-329.30M-219.40M11.90M

REA Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price191.81
Price Trends
50DMA
210.19
Negative
100DMA
225.50
Negative
200DMA
231.24
Negative
Market Momentum
MACD
-5.54
Negative
RSI
34.98
Neutral
STOCH
19.81
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 191.81 is below the 20-day moving average (MA) of 196.39, below the 50-day MA of 210.19, and below the 200-day MA of 231.24, indicating a bearish trend. The MACD of -5.54 indicates Negative momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 19.81 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
12.43%47.92%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
$25.61B37.7738.75%1.29%13.09%123.97%
41
Neutral
AU$25.24M-20.0012.70%71.21%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:REA
REA Group Ltd
191.81
-48.49
-20.18%
AU:RMY
RMA Global Ltd.
0.04
0.00
0.00%
AU:DHG
Domain Holdings Australia Ltd.
4.42
1.87
73.33%

REA Group Ltd Corporate Events

REA Group Announces Director’s Interest Change with Performance Rights Allocation
Nov 21, 2025

REA Group Ltd has announced a change in the director’s interest, specifically for Cameron McIntyre, who has acquired a total of 16,313 Performance Rights as part of his remuneration and sign-on arrangements. These rights are divided across the REA Group FY26 and FY27 Sign on Awards and the Long-Term Incentive Plan, with performance periods ending in 2026, 2027, and 2028. This move is part of REA Group’s strategy to align executive incentives with long-term company performance, potentially impacting the company’s operational focus and stakeholder interests.

REA Group Issues New Employee Performance Rights
Nov 21, 2025

REA Group Ltd has announced the issuance of 12,500 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning employee interests with company goals.

REA Group Announces CFO Succession
Nov 18, 2025

REA Group Ltd announced the retirement of its Chief Financial Officer, Janelle Hopkins, effective February 2026, marking the end of her impactful seven-year tenure. Andrew Cramer, with extensive experience from News Corp and a background in investment banking, will succeed her, bringing strategic financial expertise to support REA’s continued growth and success.

News Corporation Releases Q3 2025 Financial Report
Nov 9, 2025

News Corporation, a prominent player in the media industry, has released its quarterly report for the period ending September 30, 2025. The report highlights the company’s financial performance, including consolidated statements of operations, comprehensive income, balance sheets, and cash flows. The document also includes management’s discussion on financial conditions and results, disclosures about market risks, and other relevant financial information. This release provides stakeholders with insights into the company’s operational health and market positioning.

REA Group Reports Strong Q1 Growth Amid Market Challenges
Nov 6, 2025

REA Group Ltd reported strong financial performance for the first quarter of the fiscal year 2026, with a 4% increase in revenue to $429 million and a 5% rise in EBITDA to $254 million. This growth was driven by increased adoption of premium products and a healthy property market, despite a decline in listing volumes compared to the previous year. In Australia, revenue grew by 6% due to higher yields and increased depth penetration, while in India, revenue declined by 20% due to strategic divestments and regulatory changes. The company’s flagship platform, realestate.com.au, achieved record audience numbers, further solidifying its market leadership.

REA Group Ltd Appoints New Director
Nov 3, 2025

REA Group Ltd has announced the appointment of Cameron McIntyre as a director, effective from November 3, 2025. The announcement indicates that McIntyre currently holds no securities or interests in contracts related to the company, suggesting a fresh perspective and potential strategic contributions to the board without existing conflicts of interest.

REA Group Announces Director Owen Wilson’s Departure
Nov 3, 2025

REA Group Ltd has announced the cessation of Owen Wilson as a director effective October 31, 2025. This final director’s interest notice details Wilson’s holdings in performance rights and restricted ordinary shares under various incentive plans. The announcement marks a significant change in the company’s leadership, potentially impacting its strategic direction and stakeholder relationships.

REA Group Ltd to Announce Q1 FY26 Results
Oct 24, 2025

REA Group Ltd announced that it will release its Q1 FY26 results on 7 November 2025, with a briefing hosted by incoming CEO Cameron McIntyre and CFO Janelle Hopkins. This announcement signifies a key moment for stakeholders to assess the company’s financial health and strategic direction under new leadership.

REA Group Ltd 2025 AGM Resolutions Passed with Strong Support
Oct 9, 2025

REA Group Ltd announced the results of its 2025 Annual General Meeting, where all resolutions were passed by poll. Key decisions included the re-election of several directors and the approval of performance rights for CEO Cameron McIntyre. This outcome reflects strong shareholder support and is likely to reinforce the company’s strategic direction and leadership stability, benefiting its stakeholders.

REA Group Ltd’s 2025 AGM Highlights Strategic Market Positioning
Oct 8, 2025

REA Group Ltd held its 2025 Annual General Meeting, where the Chairman and CEO provided a market update. The meeting included procedural details for voting and asking questions, emphasizing shareholder engagement and transparency. The announcement underscores REA Group’s commitment to maintaining open communication with its stakeholders and highlights its strategic initiatives and market positioning in the digital property advertising industry.

REA Group Director Alters Shareholding
Sep 19, 2025

REA Group Ltd announced a change in the director’s interest, specifically involving Owen Wilson, who disposed of a total of 13,000 ordinary shares over three transactions. This change in shareholding could impact the company’s stock market perception and investor confidence, as it reflects a significant alteration in the director’s investment in the company.

REA Group Ltd Updates Director’s Interest Notice
Sep 10, 2025

REA Group Ltd has announced a change in the director’s interest notice concerning Owen Wilson, reflecting updates in his direct and indirect interests in the company’s securities. This update, effective from August 29, 2025, involves indirect interests held by the Blue Chip Investment Trust, where Mr. Wilson is a beneficiary, potentially impacting the company’s governance and stakeholder perceptions.

REA Group Ltd Issues Performance Rights to Boost Employee Engagement
Sep 10, 2025

REA Group Ltd has announced the issuance of 4,245 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to motivate and retain employees, potentially impacting its operational efficiency and market competitiveness.

REA Group Ltd Updates Director’s Interest Notice
Sep 10, 2025

REA Group Ltd announced a change in the registered holder name for director Richard Freudenstein’s indirect interest in the company, with no change in the total number of shares held. This update is procedural and does not impact the director’s overall interest in the company, maintaining the status quo for stakeholders.

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: Dec 03, 2025