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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 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
AU$180.00
▲(11.40% Upside)
Action:ReiteratedDate:02/07/26
The score is primarily supported by strong financial performance (high margins, strong ROE, and low leverage), but is held back by bearish technical signals (downtrend across moving averages and negative momentum) and a relatively expensive valuation (high P/E with modest yield).
Positive Factors
High Profitability & Margins
Extremely high gross and operating margins reflect a scalable, low-cost digital marketplace with strong unit economics. Durable margins support reinvestment in product, R&D and marketing, and provide resilience to moderate revenue volatility while enabling sustained profitability.
Conservative Balance Sheet and Strong ROE
Very low leverage and a high equity base give the company financial flexibility to invest, make acquisitions, or return capital without stress. Elevated ROE indicates efficient use of shareholder capital, supporting long-term shareholder value creation and durability through cycles.
Solid Cash Generation
Operating cash conversion near parity with net income and a strong FCF-to-income ratio show the business reliably turns profits into cash. That cash conversion underpins sustainable investment in product, balance sheet strength and the ability to fund strategic initiatives over time.
Negative Factors
Declining Free Cash Flow Growth
A meaningful drop in free cash flow growth can reduce headroom for reinvestment, M&A or shareholder returns if it persists. Even with good conversion ratios, continued FCF contraction would constrain capital allocation and could signal rising operating or capital intensity.
Negative EPS Growth
Negative EPS growth suggests recent pressure on reported earnings, which may reflect softer demand, higher costs, or investment-driven dilution. Persistent EPS decline weakens margin expansion outlook and can limit flexibility to increase dividends or buybacks over the medium term.
Revenue Cyclicality from Property & Advertising
Core revenues depend on housing transaction volumes and ad spend, exposing the business to macro and sector cycles. Structural sensitivity means revenue and monetisation can swing with market activity, reducing predictability of top-line and advertiser-driven income over 2–6 months.

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:May 07, 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
Strong profitability (gross margin 96.54%, net margin 35.15%) and solid revenue growth (+6.39%) support a high score. Balance sheet leverage is very conservative (debt-to-equity 0.04) with strong ROE (35.44%). The main offset is weakening free cash flow growth (-15.74%), which tempers the score.
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.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue1.96B1.93B1.68B1.39B1.43B1.01B
Gross Profit884.20M1.86B1.08B636.50M598.00M498.40M
EBITDA1.00B1.06B683.00M622.20M649.30M544.90M
Net Income572.90M677.90M302.80M356.10M384.80M322.68M
Balance Sheet
Total Assets2.97B2.83B2.65B2.63B2.57B2.36B
Cash, Cash Equivalents and Short-Term Investments478.40M428.80M205.10M259.80M248.20M168.90M
Total Debt176.00M70.70M281.20M403.20M487.00M495.60M
Total Liabilities873.80M881.30M1.08B1.11B1.21B1.22B
Stockholders Equity2.06B1.91B1.54B1.47B1.30B1.07B
Cash Flow
Free Cash Flow717.70M537.40M464.40M355.10M392.60M254.50M
Operating Cash Flow723.20M675.40M589.40M472.70M487.60M321.40M
Investing Cash Flow-207.10M71.10M-205.20M-133.60M-194.70M-381.50M
Financing Cash Flow-373.00M-521.60M-439.40M-329.30M-219.40M11.90M

REA Group Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price161.58
Price Trends
50DMA
175.97
Negative
100DMA
189.97
Negative
200DMA
213.25
Negative
Market Momentum
MACD
-4.78
Negative
RSI
46.29
Neutral
STOCH
67.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REA, the sentiment is Neutral. The current price of 161.58 is below the 20-day moving average (MA) of 163.42, below the 50-day MA of 175.97, and below the 200-day MA of 213.25, indicating a neutral trend. The MACD of -4.78 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
64
Neutral
AU$21.70B18.0038.75%1.33%13.09%123.97%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
45
Neutral
AU$38.53M-2.8212.70%71.21%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:REA
REA Group Ltd
164.25
-78.58
-32.36%
AU:RMY
RMA Global Ltd.
0.06
0.02
56.76%

REA Group Ltd Corporate Events

REA Group Provides Daily Update on On-Market Share Buy-Back
Mar 4, 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 under the code REA. The latest daily update, dated 5 March 2026, reports that a total of 90,673 shares had been repurchased prior to the previous day, with a further 19,998 shares bought back on the previous trading day.

This continuing on-market buy-back indicates REA Group is actively returning capital to shareholders and managing its capital structure through the reduction of shares on issue. The regular daily disclosures maintain transparency for investors and the market as the program progresses, allowing stakeholders to track the scale and pace of the buy-back activity over time.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$176.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Updates Market on Progress of On-Market Share Buy-Back
Mar 3, 2026

REA Group Ltd has reported an update to its on-market share buy-back program, confirming that it repurchased 12,920 ordinary fully paid shares in the most recent trading day. This takes the total number of shares bought back under the current program to 77,753, reflecting the company’s ongoing capital management strategy and potential confidence in its valuation, which may incrementally enhance earnings per share and support shareholder value over time.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$176.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group issues daily update on ongoing on-market share buy-back
Mar 2, 2026

REA Group Ltd has provided an updated daily notification on its ongoing on-market share buy-back program for its ordinary fully paid securities. The company reported that a total of 67,440 shares had been repurchased before the previous trading day, with a further 10,313 shares bought back on the previous day, as part of its capital management strategy.

The updated filing, lodged with the ASX on 3 March 2026, reflects the continuation of a buy-back that was initially notified in early February and is being reported via daily amendments. Regular disclosures of the buy-back progress offer transparency to investors about reductions in the company’s share count and the execution of its capital allocation plans.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$176.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Updates Market on Progress of On-Market Share Buy-Back
Mar 1, 2026

REA Group Ltd has provided an update on its on-market share buy-back program for its ordinary fully paid shares traded on the ASX. The latest notification, dated 2 March 2026, reports that the company repurchased 2,533 shares on the previous trading day, bringing the cumulative total bought back so far under this program to 64,907 shares.

The daily disclosure reflects REA Group’s ongoing capital management strategy, aimed at returning excess capital to shareholders and potentially enhancing earnings per share over time. Regular buy-back updates also improve transparency for investors, allowing stakeholders to track the scale and progress of the program as it unfolds in the market.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$176.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Updates Market on Ongoing On-Market Share Buy-Back
Feb 25, 2026

REA Group Ltd has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The update, dated 26 February 2026, confirms the company is continuing to repurchase its own stock as part of a previously announced capital management initiative.

The latest filing reports that REA Group had bought back a cumulative total of 44,863 shares prior to the most recent trading day, with an additional 20,044 shares repurchased on the previous day. This ongoing daily buy-back activity indicates the company’s continued focus on returning capital to shareholders and potentially supporting its share price through reduced share count.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$162.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group continues on-market share buy-back with latest daily update
Feb 24, 2026

REA Group Ltd has issued an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The company reported that it repurchased 17,386 shares on the previous trading day, bringing the cumulative total bought back so far under the current program to 27,477 shares.

The daily update, dated 25 February 2026, follows the initial buy-back notification lodged on 6 February 2026 and the most recent prior update on 24 February 2026. Regular reporting of these transactions signals REA Group’s continued execution of its capital management strategy, which can support earnings per share and may be viewed positively by investors seeking disciplined balance sheet management.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$172.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Begins Daily On‑Market Buy‑Back of Ordinary Shares
Feb 23, 2026

REA Group Ltd has updated the market on its on‑market share buy‑back program, confirming that it is repurchasing its ordinary fully paid shares on the Australian Securities Exchange. The latest daily notification reports that 27,477 shares were bought back on the previous trading day, marking the first recorded repurchases under this current buy‑back cycle.

The announced buy‑backs reduce the company’s shares on issue and can signal confidence in REA Group’s financial position and long‑term prospects. For existing shareholders, the program may be value‑accretive over time by potentially enhancing earnings per share, while also demonstrating disciplined capital management in a competitive digital real estate market.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$172.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

News Corp Files Quarterly 10-Q, Affirms Compliance and Discloses Key Financial Information
Feb 8, 2026

News Corporation has filed its quarterly Form 10-Q with the U.S. Securities and Exchange Commission for the period ended December 31, 2025, confirming it has met all required filing and electronic data submission obligations over the past 12 months. The filing outlines its financial statements, management discussion and analysis, risk factors, and other statutory disclosures, reaffirming its status as a non‑shell, large accelerated filer with a substantial volume of Class A and Class B shares outstanding.

The report’s structure signals continued regulatory compliance and transparency for investors, providing detailed operational and financial information through unaudited quarterly statements and associated notes. Inclusion of sections on market risk, controls and procedures, and legal proceedings indicates ongoing oversight of financial health and governance, offering stakeholders insight into News Corp’s risk profile and corporate integrity within the broader media and information industry.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$178.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Declares Interim Dividend of $1.24 per Share
Feb 5, 2026

REA Group Ltd has declared an ordinary fully paid share dividend of AUD 1.24 per share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 3 March 2026, with a record date of 4 March 2026 and payment scheduled for 18 March 2026, reinforcing the company’s pattern of returning cash to shareholders and signalling continued confidence in its earnings and cash flow profile.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$222.70 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Posts Higher Revenue and Core Profit but Lower Statutory Earnings as Portfolio Reshapes
Feb 5, 2026

REA Group Ltd reported a 5% rise in revenue to A$915.8 million for the half-year to 31 December 2025, while net profit after tax fell 24% to A$332.8 million, contrasting with a 9% increase in net profit after tax from core operations to A$340.6 million, highlighting the impact of non-recurring items on statutory earnings. The company lifted its 2026 interim dividend to 124 cents per share, fully franked, and continued to reshape its portfolio by incorporating new entities in Canada, acquiring Planitar Inc., disposing of PropTiger Marketing Services, and increasing stakes in several associates including Easiloan and Empirical CRE, alongside a new 20% interest in Immersiv 3D, signalling an ongoing strategy of international expansion and investment in complementary property technology and financial services businesses.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$222.70 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group sets 6 February date for half-year results briefing
Jan 19, 2026

REA Group Ltd has advised the market that it will release its financial results for the half-year ended 31 December 2025 on 6 February 2026, accompanied by a webcast briefing hosted by CEO Cameron McIntyre and CFO Janelle Hopkins. The scheduled update will give investors and analysts fresh insight into the performance of the group’s diversified property advertising, data and mortgage operations across Australia and key international markets, and may help clarify how its broad portfolio of digital real estate and finance assets is tracking amid evolving conditions in global property and housing finance sectors.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$279.25 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Reports Lapse of 13,500 Performance Rights in Capital Adjustment
Jan 13, 2026

REA Group Ltd has notified the market of the cessation of 13,500 performance rights, which lapsed in December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied. The lapsing of these conditional rights, disclosed in an Appendix 3H filing, represents an adjustment to the company’s issued capital and may indicate that certain performance or service conditions tied to management or employee equity incentives were not achieved over the relevant period.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$279.25 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

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: Feb 07, 2026