Avis Budget Group (CAR)
NASDAQ:CAR
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Avis Budget
(NASDAQ:CAR)
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Rating:53Neutral
Price Target:
$190.00
▼(-61.53% Downside)
Action:Reiterated
Date:06/13/26
The score is held back primarily by weak financial quality—ongoing losses and a highly leveraged capital structure with negative equity—partially offset by strong operating cash generation. The latest earnings call was constructive (raised EBITDA guidance, improving pricing/depreciation and liquidity actions), while technicals and valuation are mixed and do not provide a strong independent support.
Positive Factors
Operating cash generation
Consistently strong operating cash flow (~$3.1B TTM) underpins the capital-intensive rental model, supporting fleet purchases, ABS financings and short-term liquidity. Durable cash generation provides a foundation for deleveraging and reinvestment even while net income remains volatile.
Negative Factors
Negative shareholders' equity
Persistently negative shareholders' equity signals cumulative losses and erodes financial flexibility. Negative equity complicates refinancing, increases counterparty and covenant sensitivity, and limits the company's ability to absorb shocks or pursue growth without dilutive or costly capital raises.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash generation
Consistently strong operating cash flow (~$3.1B TTM) underpins the capital-intensive rental model, supporting fleet purchases, ABS financings and short-term liquidity. Durable cash generation provides a foundation for deleveraging and reinvestment even while net income remains volatile.
Read all positive factors
Avis Budget (CAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.61B
Dividend YieldN/A
Average Volume (3M)1.13M
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth0.72%
EPS Growth69.91%
CountryUS
Employees17,000
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-18.93
Shares Outstanding35,324,986
10 Day Avg. Volume839,651
30 Day Avg. Volume1,130,714
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-1.44
Price to Sales (P/S)0.39
P/FCF Ratio-0.38
Enterprise Value/Market Cap5.05
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit11.09
Enterprise Value/Ebitda6.92
Forecast
1Y Price Target
$132.00Price Target Upside-73.27% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)4.72
Revenue Forecast (FY)$11.93B
Avis Budget Business Overview & Revenue Model
Company Description
Avis Budget Group, Inc. is a prominent global provider of diverse mobility solutions, delivering vehicle rental services for both cars and trucks, alongside car-sharing options, to a broad clientele encompassing businesses and individual consumers...
How the Company Makes Money
Avis Budget makes money primarily by renting vehicles to customers and charging related fees for time- and usage-based access to cars. Its core revenue stream is vehicle rental revenue, typically priced by day (or hour for car sharing) and influen...
Avis Budget Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveys meaningful operational progress and financial improvement—beat on adjusted EBITDA, raised full-year guidance, pricing recovery in the Americas, improved utilization, fleet youth and liquidity/ refinancing wins—while acknowledging material near-term challenges including elevated leverage, governance/stock volatility tied to a large shareholder sale and uneven international demand. Management presented a clear plan (fleet discipline, debt repayment, ongoing EBITDA growth) and expects continued improvement, supporting an overall constructive tone.Positive Updates
Adjusted EBITDA Beat and Raised Guidance
Adjusted EBITDA exceeded plan by approximately $50 million in Q1; company raised full-year adjusted EBITDA guidance to a range of $850 million to $1.0 billion.
Negative Updates
Share-Price Volatility and Large Share Sale
Significant stock volatility tied to a large shareholder (Pentwater Capital) that sold 4.3 million shares for gross proceeds of $1.75 billion on April 22–23; company reports this contributed to a material stock price decline.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Raised Guidance
Adjusted EBITDA exceeded plan by approximately $50 million in Q1; company raised full-year adjusted EBITDA guidance to a range of $850 million to $1.0 billion.
Read all positive updates
Company Guidance
Management raised full‑year adjusted EBITDA guidance to $850M–$1.0B after Q1 outperformance of roughly $50M; net corporate leverage was 7.6x as of March 31 with a plan to get below 6x by year‑end and a longer‑term target of 2–4x. Liquidity exceeded $900M with ~$2.9B of ABS capacity; the company renewed a ~€2.4B European securitization (extended two years), issued $668M of AESOP term debt across 3‑ and 5‑year tenors, expects to renew a $2.4B AESOP VFN facility, has $480M of seasonal capacity through Oct‑2026, and has no corporate debt maturities until 2027. Operationally, Americas revenue grew 2.9% with rental days essentially flat and RPD up 2.8% (exiting March ~+4%), ancillary +1.9%, leisure share +1.1 pts, TSA volumes +1.6% and a deliberate Americas fleet reduction of ~0.6%; utilization hit the highest Q1 level in 15+ years, the fleet is ~20% younger, and monthly Americas depreciation averaged about $380 in Q1 (from >$500 in January into the mid‑$300s by March) with a meaningful decline expected in Q2. International rental days were down 3.8% while RPD rose ~3% on a constant‑currency basis, and management said Americas rental days are trending mid‑single‑digit growth with RPD holding into the summer (Waymo Dallas launch on track for Q3).Avis Budget Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
18
Very Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.75B | 11.65B | 11.79B | 12.01B | 11.99B | 9.31B |
| Gross Profit | 3.01B | 2.85B | 3.00B | 3.93B | 4.77B | 3.39B |
| EBITDA | 4.82B | 4.44B | 2.67B | 6.43B | 7.15B | 4.74B |
| Net Income | -667.00M | -889.00M | -1.82B | 1.63B | 2.76B | 1.28B |
Balance Sheet | ||||||
| Total Assets | 30.60B | 32.19B | 29.95B | 33.42B | 25.93B | 22.60B |
| Cash, Cash Equivalents and Short-Term Investments | 528.00M | 519.00M | 537.00M | 559.00M | 572.00M | 537.00M |
| Total Debt | 27.67B | 31.17B | 26.04B | 26.45B | 20.92B | 17.80B |
| Total Liabilities | 33.88B | 35.24B | 32.27B | 33.76B | 26.63B | 22.81B |
| Stockholders Equity | -3.42B | -3.13B | -2.33B | -349.00M | -703.00M | -220.00M |
Cash Flow | ||||||
| Free Cash Flow | -1.53B | -11.98B | -6.54B | -11.63B | 576.00M | -2.59B |
| Operating Cash Flow | 3.11B | 3.30B | 3.52B | 3.83B | 4.71B | 3.49B |
| Investing Cash Flow | -3.85B | -4.98B | -2.75B | -7.35B | -4.30B | -6.31B |
| Financing Cash Flow | 767.00M | 1.68B | -781.00M | 3.51B | -360.00M | 2.69B |
Avis Budget Technical Analysis
Positive
493.86
Price Trends
230.93
Negative
171.53
Positive
156.95
Positive
Market Momentum
-3.17
Negative
51.92
Neutral
89.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAR, the sentiment is Positive. The current price of 493.86 is above the 20-day moving average (MA) of 170.03, above the 50-day MA of 230.93, and above the 200-day MA of 156.95, indicating a neutral trend. The MACD of -3.17 indicates Negative momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 89.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAR.
Avis Budget Risk Analysis
Avis Budget disclosed 64 risk factors in its most recent earnings report. Avis Budget reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avis Budget Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.54B | 10.38 | 20.48% | 1.72% | 0.45% | -25.85% | |
71 Outperform | $10.85B | 22.47 | 16.36% | 1.75% | -0.07% | 4.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $5.09B | -74.96 | -7.11% | 1.44% | -4.12% | -487.73% | |
56 Neutral | $4.83B | -963.17 | -0.26% | 1.79% | 28.39% | -105.83% | |
53 Neutral | $6.61B | -9.90 | 22.83% | ― | 0.72% | 69.91% | |
45 Neutral | $1.62B | -2.53 | 123.33% | ― | -0.99% | 79.92% |
* Industrials Sector Average
CAR
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Avis Budget Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Avis Budget Issues New Asset-Backed Securities for Fleet Funding
Positive
Jun 12, 2026
On June 9, 2026, Avis Budget’s Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $650 million of asset-backed securities in Series 2026-3 and Series 2026-4, with tranches of Class A through Class D notes carrying maturities of thr...
Business Operations and StrategyPrivate Placements and Financing
Avis Budget Issues Additional Senior Notes to Refinance Debt
Neutral
Jun 1, 2026
On May 29, 2026, Avis Budget Car Rental and Avis Budget Finance issued an additional $300 million of 8.000% senior notes due 2031, bringing the total size of that series to $800 million and further extending the company’s long-term debt stac...
Executive/Board Changes
Avis Budget Names New Chief Accounting Officer
Positive
May 29, 2026
On May 26, 2026, Avis Budget Group, Inc. appointed long-time finance executive Tina Goldenberg as Vice President and Chief Accounting Officer, effective June 15, 2026, succeeding retiring Senior Vice President and Chief Accounting Officer Cathleen...
Executive/Board ChangesShareholder Meetings
Avis Budget Shareholders Uphold Board, Reject Governance Changes
Positive
May 21, 2026
At its May 20, 2026 annual meeting, Avis Budget Group shareholders elected six director nominees to one-year terms ending in 2027, reaffirming the existing board leadership. Investors also ratified Deloitte Touche LLP as the independent auditor f...
Business Operations and StrategyPrivate Placements and Financing
Avis Budget Expands and Extends U.S. Fleet Financing
Positive
May 5, 2026
On April 30, 2026, Avis Budget’s Avis Budget Rental Car Funding (AESOP) LLC completed an amendment and extension of its asset-backed variable-funding facilities that help finance its U.S. car rental fleet. The changes increased the aggregate...
Business Operations and StrategyPrivate Placements and Financing
Avis Budget Launches At-the-Market Equity Offering Program
Neutral
Mar 27, 2026
On March 27, 2026, Avis Budget Group, Inc. entered into an Equity Distribution Agreement with a syndicate of major investment banks that will act as sales agents or principals for up to 5,000,000 newly issued common shares. The shares may be sold ...
Business Operations and StrategyPrivate Placements and Financing
Avis Budget Raises $668 Million Through Asset-Backed Notes
Positive
Mar 13, 2026
On March 11, 2026, Avis Budget’s subsidiary Avis Budget Rental Car Funding (AESOP) LLC issued $668.2 million in asset-backed securities across two series of Class A through D notes with maturities of three and five years, secured by vehicles...
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.