Avis Budget (CAR) AI Stock Analysis

• Market Cap: $5.34B
• Dividend Yield: N/A
• Average Volume (3M): 733.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -2.25%
• EPS Growth: -395.93%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 2.70
• Shares Outstanding: 35,193,504
• 10 Day Avg. Volume: 616,387
• 30 Day Avg. Volume: 733,746
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.50
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: 32.18
• 1Y Price Target: $139.14
• Price Target Upside: -9.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 45 Neutral
• Price Target: $149.00 ▼(-2.77% Downside)

Avis Budget's overall stock score reflects significant financial instability due to high leverage and negative equity, which are major concerns. The technical indicators suggest a bearish trend, and the valuation is unattractive with a negative P/E ratio. While the earnings call provided some positive strategic insights, operational challenges remain a significant risk.

Positive Factors

Strategic Partnerships

The partnership with Waymo positions Avis Budget in the autonomous vehicle space, leveraging its fleet management expertise. This strategic move could enhance long-term growth by aligning with future transportation trends and expanding service offerings.

Cash Flow Improvement

Improved free cash flow indicates stronger cash generation capabilities, providing financial flexibility. This can support ongoing operations and strategic investments, enhancing long-term business sustainability despite current profitability challenges.

New Product Launch

The launch of Avis First, a premium rental service, aims to capture higher-margin segments and improve customer experience. This initiative could drive revenue growth by attracting premium customers and differentiating Avis from competitors.

Negative Factors

High Leverage

High leverage and negative equity highlight significant financial risk, limiting the company's ability to invest in growth and weather economic downturns. This financial instability poses a long-term challenge to Avis Budget's operational resilience.

Operational Challenges

Fleet recalls and tariff uncertainties disrupt operations, affecting revenue and fleet management efficiency. These issues hinder the company's ability to optimize its fleet and capitalize on market opportunities, impacting long-term profitability.

Declining Revenue

Inconsistent revenue growth reflects challenges in maintaining market share and pricing power. This trend could undermine long-term financial performance, making it difficult for Avis Budget to achieve sustainable growth and profitability.

Avis Budget Business Overview & Revenue Model

Company Description

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; the Budget Truck brand, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 20,000 vehicles, which are rented through a network of approximately 465 dealer-operated and 385 company-operated locations that serve the consumer and light commercial sectors in the continental United States; and the Zipcar brand, a car sharing network. The company also operates various other car rental brands, such as Budget, Payless, Apex, Maggiore, MoriniRent, FranceCars, Amicoblue, Turiscar, and ACL Hire. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, and automobile towing protection and cargo insurance products; fuel service options, roadside assistance services, electronic toll collection services, curbside delivery, tablet rentals, access to satellite radio, portable navigation units, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Business Intelligence solution, an online portal for corporate travel. Avis Budget Group, Inc. operates in approximately 10,400 locations worldwide. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.

How the Company Makes Money

Avis Budget generates revenue primarily through its vehicle rental operations. The company charges customers for the rental of vehicles on a daily, weekly, or monthly basis, with pricing varying based on vehicle type, rental duration, and location. Key revenue streams include not only rental fees but also ancillary services such as insurance, fuel options, and GPS rentals. Additionally, Avis Budget benefits from partnerships with travel agencies, airlines, and hotels, allowing it to reach a broader customer base and offer bundled services. The company also generates income through its Zipcar brand, providing car-sharing services that cater to urban customers looking for flexible transportation options. Furthermore, Avis Budget's fleet management solutions for businesses contribute to its overall revenue, as companies frequently require reliable and efficient vehicle management services.

Avis Budget Financial Statement Overview

Summary

Avis Budget faces significant financial challenges with high leverage and negative equity, posing substantial risks. The income statement reflects inconsistent profitability and declining revenue. However, the company has shown improvement in cash flow, which is a positive aspect.

Income Statement

Avis Budget has experienced volatility in its net income, with a significant net loss of -$2.22 billion in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 46.56%, indicating efficient cost management. However, the net profit margin is heavily negative, showing profitability challenges. Revenue growth has been inconsistent, with a decline from the previous periods, and EBIT and EBITDA margins have decreased, suggesting declining operational efficiency.

Balance Sheet

Avis Budget's balance sheet shows high leverage with a negative stockholders' equity of -$2.75 billion, indicating insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative. These factors highlight significant financial risk. Return on Equity is not calculable due to negative equity, further emphasizing financial instability.

Cash Flow

The company has shown improvement in free cash flow, shifting from negative to positive in the TTM period, with a free cash flow of $347 million. Operating cash flow remains robust, significantly exceeding net income, indicating strong cash generation capabilities despite net losses. However, the free cash flow to net income ratio is still challenging due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.61B	11.62B	12.01B	11.99B	9.31B	5.40B
Gross Profit	5.41B	3.00B	4.77B	10.76B	7.80B	3.72B
EBITDA	1.08B	2.67B	5.66B	7.15B	4.74B	2.17B
Net Income	-2.22B	-1.82B	1.63B	2.76B	1.28B	-684.00M
Balance Sheet
Total Assets	10.16B	29.04B	32.57B	25.93B	22.60B	17.54B
Cash, Cash Equivalents and Short-Term Investments	541.00M	534.00M	555.00M	570.00M	534.00M	692.00M
Total Debt	8.71B	26.04B	26.45B	20.92B	17.80B	13.66B
Total Liabilities	12.39B	31.36B	32.91B	26.63B	22.81B	17.69B
Stockholders Equity	-2.75B	-2.33B	-349.00M	-703.00M	-220.00M	-155.00M
Cash Flow
Free Cash Flow	-8.41B	-6.54B	-11.63B	576.00M	-2.59B	3.95B
Operating Cash Flow	3.50B	3.52B	3.83B	4.71B	3.49B	691.00M
Investing Cash Flow	-4.15B	-2.75B	-7.35B	-4.30B	-6.31B	3.18B
Financing Cash Flow	654.00M	-781.00M	3.51B	-360.00M	2.69B	-4.04B

Avis Budget Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 153.24 is above the 20-day moving average (MA) of 153.02, below the 50-day MA of 155.12, and above the 200-day MA of 123.08, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAR.

Avis Budget Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	73 Outperform	$1.29B	7.90	24.56%	1.57%	3.71%	9.14%
R	69 Neutral	$7.46B	13.56	16.29%	2.08%	3.68%	6.61%
WSC	66 Neutral	$3.92B	36.96	9.82%	0.97%	-2.34%	-37.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	57 Neutral	$4.32B	148.86	1.41%	2.13%	11.41%	-92.67%
CAR	45 Neutral	$5.34B	-2.42	―	―	-2.25%	-395.93%
HTZ	38 Underperform	$1.59B	―	-350.48%	―	-7.58%	-225.06%

Avis Budget Corporate Events

Avis Budget Issues $793.2 Million in Asset-Backed Securities

On September 16, 2025, Avis Budget‘s subsidiary, Avis Budget Rental Car Funding (AESOP) LLC, issued $793.2 million in asset-backed securities with maturities of three and five years. These securities, secured by vehicles in the company’s domestic fleet, are structured into various classes of notes, with some retained for potential future sale. The issuance aims to comply with U.S. risk retention rules and involves commercial and investment banking services from various affiliates.

The most recent analyst rating on (CAR) stock is a Hold with a $151.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Amends Cooperation Agreement with SRS

On September 5, 2025, Avis Budget Group, Inc. amended its cooperation agreement with SRS Investment Management, LLC, increasing SRS’s voting cap from 35% to 45%. The amendment also sets the board size at five or six directors as long as SRS owns at least 10% of voting securities, with no more than two directors affiliated with SRS. Additionally, restrictions are placed on share transfers to maintain board composition and voting structures.

The most recent analyst rating on (CAR) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Amends Certificate of Incorporation

On May 14, 2025, Avis Budget Group, Inc. held its Annual Meeting of Shareholders, where stockholders approved amendments to the company’s Certificate of Incorporation. These changes, filed on July 31, 2025, include revising director removal vote requirements, allocating voting privileges for preferred stock amendments, and providing for officer exculpation, potentially impacting governance and shareholder rights.

The most recent analyst rating on (CAR) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Group Reports Q2 2025 Earnings

Avis Budget Group, a leading global provider of mobility solutions, operates through its Avis, Budget, and Zipcar brands, offering car rental and car-sharing services across approximately 180 countries worldwide. Headquartered in Parsippany, N.J., the company is recognized for its extensive network and innovative mobility solutions.

Avis Budget Group’s Strategic Moves Amid Challenges

Avis Budget Group’s recent earnings call painted a picture of strategic ambition tempered by immediate operational challenges. The company is clearly focused on long-term growth through innovation and partnerships, as evidenced by the launch of Avis First and a collaboration with Waymo. However, the path forward is not without obstacles, including fleet recalls and a competitive pricing landscape that present significant short-term hurdles.