REA Group Ltd (REA) AI Stock Analysis

• Market Cap: AU$21.91B
• Dividend Yield: 1.33%
• Average Volume (3M): 249.67K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 1.07
• Revenue Growth: 13.09%
• EPS Growth: 123.97%
• Country: AU
• Employees: 3,406
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 2.58
• Shares Outstanding: 132,117,220
• 10 Day Avg. Volume: 245,328
• 30 Day Avg. Volume: 249,671
• PEG Ratio: 0.38
• Price to Book (P/B): 16.61
• Price to Sales (P/S): 16.47
• P/FCF Ratio: 59.09
• 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$217.51
• Price Target Upside: 31.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.8
• Revenue Forecast (FY): AU$1.80B

• Rating: 64 Neutral
• Price Target: AU$180.00 ▲(8.56% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 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

REA's extremely high gross and operating margins reflect a scalable digital marketplace with low variable costs and strong pricing power. These durable margins support reinvestment in product, marketing and data, fund shareholder returns, and provide resilience through normal market cycles over the next several months.

Conservative Balance Sheet

Very low leverage and a strong equity base provide financial flexibility to invest, acquire or return capital without stressing liquidity. High ROE indicates efficient capital use, which underpins sustainable shareholder returns and reduces solvency risk during real estate cycle fluctuations.

Strong Cash Conversion

Near-parity operating cash flow to reported earnings and a high FCF conversion rate show the business reliably generates cash from operations. This durable cash generation supports ongoing investment in platform features, marketing and product development, and helps fund dividends or buybacks.

Negative Factors

Falling Free Cash Flow Growth

A material decline in free cash flow growth can constrain the company’s ability to fund organic investment, M&A and shareholder returns without relying on earnings improvement. If the FCF slowdown persists, it could pressure strategic initiatives and financial flexibility over the coming months.

Modest Revenue & EPS Trends

Top-line growth is moderate while EPS has contracted, suggesting margin pressure or rising costs in certain areas. Slower revenue expansion plus negative EPS growth reduces leeway for reinvestment and heightens reliance on margin maintenance to sustain returns over a 2–6 month horizon.

Exposure to Property & Ad Cycles

REA’s core monetisation depends on property transaction activity and advertising budgets. These are cyclical and sensitive to macro and housing-market shifts; prolonged softness in transactions or ad spend could materially depress revenues and margin sustainability in the medium term.

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 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 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

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 165.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 165.8 is below the 20-day moving average (MA) of 166.71, below the 50-day MA of 178.12, and below the 200-day MA of 215.72, indicating a bearish trend. The MACD of -5.73 indicates Negative momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REA	64 Neutral	AU$21.91B	38.34	38.75%	1.33%	13.09%	123.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RMY	45 Neutral	AU$42.52M	-9.14	―	―	12.70%	71.21%

REA Group Ltd Corporate Events

REA Group Updates Market on Progress of On-Market Share Buy-Back

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

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

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

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

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

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

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

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

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

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

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.