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REA Group Ltd (AU:REA)
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REA Group Ltd (REA) AI Stock Analysis

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AU:REA

REA Group Ltd

(Sydney:REA)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
AU$230.00
▲(16.52% Upside)
REA Group Ltd's strong financial performance is the most significant factor, with robust revenue growth and profitability margins. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates a relatively expensive valuation. These factors combined result in a moderate overall stock score.

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 Price197.39
Price Trends
50DMA
220.10
Negative
100DMA
230.95
Negative
200DMA
235.50
Negative
Market Momentum
MACD
-6.84
Positive
RSI
27.33
Positive
STOCH
14.34
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 197.39 is below the 20-day moving average (MA) of 210.58, below the 50-day MA of 220.10, and below the 200-day MA of 235.50, indicating a bearish trend. The MACD of -6.84 indicates Positive momentum. The RSI at 27.33 is Positive, neither overbought nor oversold. The STOCH value of 14.34 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%
65
Neutral
$26.38B38.9038.75%1.27%13.09%123.97%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
49
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
197.39
-45.74
-18.81%
AU:RMY
RMA Global Ltd.
0.03
>-0.01
-23.26%
AU:DHG
Domain Holdings Australia Ltd.
4.42
1.66
60.14%

REA Group Ltd Corporate Events

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.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$270.00 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 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.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$257.00 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’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.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$257.00 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 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.

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 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.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$252.00 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 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.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$252.00 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 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.

The most recent analyst rating on (AU:REA) stock is a Hold with a A$252.00 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 Announces Virtual 2025 Annual General Meeting
Sep 4, 2025

REA Group Ltd has announced its 2025 Annual General Meeting (AGM) will be held virtually on October 9, 2025. The meeting will provide an overview of the company’s operations and performance for the fiscal year ending June 30, 2025, and discuss important matters for shareholders and stakeholders. Shareholders are encouraged to participate online, submit votes in advance, and send questions prior to the meeting. This virtual format reflects the company’s commitment to accessibility and engagement with its stakeholders.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$291.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Announces Director’s Change in Securities Interests
Aug 25, 2025

REA Group Ltd has announced a change in the interests of its director, Owen Wilson, involving the acquisition and disposal of securities. The changes include the acquisition of 14,998 ordinary shares and 1,390 restricted ordinary shares as part of Mr. Wilson’s remuneration arrangements, while 2,839 ordinary shares were disposed of at a price of $260.5624 per share. These changes reflect the vesting of performance rights under the company’s Long-Term Incentive Plan, highlighting the ongoing alignment of executive compensation with company performance.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$291.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Appoints Cameron McIntyre as New CEO
Aug 17, 2025

REA Group Ltd has announced the appointment of Cameron McIntyre as its new Chief Executive Officer, effective November 3, 2025. McIntyre, who has a strong track record in digital marketplace businesses, will succeed Owen Wilson, who is retiring from full-time executive roles. McIntyre’s appointment follows a global search, and his experience is expected to drive REA’s next phase of growth, building on the company’s strong momentum. The transition is planned to be smooth, with Wilson continuing as CEO until the end of October 2025 and then taking on the role of Chair of REA India Pte. Ltd.

The most recent analyst rating on (AU:REA) stock is a Buy with a A$250.00 price target. To see the full list of analyst forecasts on REA Group Ltd stock, see the AU:REA Stock Forecast page.

REA Group Announces Director’s Change in Securities Interest
Aug 15, 2025

REA Group Ltd has announced a change in the director’s interest notice, specifically regarding Owen Wilson’s securities. The notice details the disposal of a total of 14,998 ordinary shares by Owen Wilson over three days in August 2025, with significant financial consideration involved. This change reflects a shift in the director’s investment strategy and may have implications for stakeholders monitoring the company’s governance and director’s confidence in the company’s future performance.

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 Ltd Announces Director’s Change in Interest
Aug 11, 2025

REA Group Ltd announced a change in the director’s interest, specifically involving Owen Wilson, who disposed of 4,933 performance rights from the company’s Long-Term Incentive Plan. This change reflects internal adjustments in the company’s executive compensation structure, potentially impacting the company’s governance and stakeholder perceptions.

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 Files Annual Report for Fiscal Year 2025
Aug 7, 2025

News Corporation, a major player in the media industry, has filed its annual report for the fiscal year ending June 30, 2025. The report highlights the company’s compliance with regulatory requirements and provides detailed financial data, including market values of its Class A and Class B Common Stock. The filing underscores News Corporation’s robust market presence and adherence to financial reporting standards, reflecting its stable position in the industry.

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 Reports Strong FY25 Financial Performance
Aug 6, 2025

REA Group Ltd, a prominent player in the digital property sector, operates leading real estate platforms in Australia and has a significant presence in India. The company reported robust financial results for the fiscal year 2025, showcasing a 15% increase in revenue to $1.673 billion and an 18% rise in EBITDA to $969 million. Key highlights include a 23% growth in net profit to $564 million and a 31% increase in dividends per share. Strategic acquisitions, such as Realtair and CampaignAgent, have expanded their service offerings, while investments in AI and technology continue to drive consumer engagement and value. Looking ahead, REA Group is well-positioned for growth with a strong balance sheet and a focus on innovation and customer value.

REA Group Ltd Unveils 2025 Corporate Governance Framework
Aug 5, 2025

REA Group Ltd has released its Corporate Governance Statement for 2025, detailing its adherence to the ASX Corporate Governance Principles. The company emphasizes its commitment to lawful, ethical, and responsible practices, ensuring transparency and accountability to stakeholders. This governance framework is designed to enhance the long-term performance and sustainability of the company, aligning with the interests of shareholders, customers, and the broader community.

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 Releases FY25 Financial Results
Aug 5, 2025

REA Group Ltd has released its financial results presentation for the year ending June 30, 2025. The announcement, authorized by the Board, highlights the company’s continued focus on transforming the property experience through its digital platforms and strategic investments. This release is significant for stakeholders as it underscores REA Group’s strong market positioning and ongoing commitment to innovation in the real estate sector.

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 Reports Strong FY25 Financial Results
Aug 5, 2025

REA Group Ltd reported a strong financial performance for the fiscal year 2025, with a 15% increase in revenue to $1,673 million and a 23% rise in net profit to $564 million. The company’s success is attributed to increased buyer activity, driven by interest rate cuts, and a robust market presence through its leading property platform, realestate.com.au, which saw significant audience growth and engagement.

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 Announces Dividend Distribution
Aug 5, 2025

REA Group Ltd has announced a dividend distribution of AUD 1.38 per ordinary fully paid share, set for payment on September 12, 2025. This distribution, relating to the six-month period ending June 30, 2025, reflects the company’s ongoing financial performance and commitment to returning value to its shareholders.

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 Reports Strong Financial Growth in 2025
Aug 5, 2025

REA Group Ltd has announced its financial results for the year ending June 30, 2025, reporting a 15% increase in revenue and a 128% rise in net profit after tax compared to the previous year. The company also declared a final dividend of 138 cents per share, reflecting strong financial performance and growth in its core operations, which is likely to positively impact its stakeholders and reinforce its position in the digital property advertising industry.

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.

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: Oct 31, 2025