Avis Budget (CAR) AI Stock Analysis

• Market Cap: $7.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.43
• Revenue Growth: -2.25%
• EPS Growth: -395.93%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Rental & Leasing Services
• EPS (TTM): 2.70
• Shares Outstanding: 35,192,238
• 10 Day Avg. Volume: 922,141
• 30 Day Avg. Volume: 1,321,772
• PEG Ratio: 0.16
• Price to Book (P/B): -2.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.17
• Enterprise Value/Market Cap: 4.56
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 6.97
• 1Y Price Target: $127.86
• Price Target Upside: -37.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $209.00 ▲(2.51%Upside)

Avis Budget's overall stock score reflects significant financial challenges, including high debt and negative earnings, despite strong technical momentum and strategic asset-backed securities issuance. While technical indicators are currently favorable, valuation concerns and financial risks weigh heavily on the stock.

Positive Factors

Fleet Management and Technology

Avis brings decades of fleet management expertise, a track record of fast, efficient execution, and a commitment to adopting cutting-edge technology, which will help scale the Waymo Driver even faster.

Market Positioning

CAR is well positioned to gain share from Hertz, enhancing its competitive stance in the rental car industry.

Negative Factors

Demand Forecast

The forecast for rental days and RPD is reduced due to potential softening in demand.

Ride Sharing Competition

Ride sharing firms may face physical barriers to growing their human driving networks in years to come due in part to physical fleet services that car rental firms can offer.

Avis Budget Business Overview & Revenue Model

Company Description

Avis Budget Group, Inc. (CAR) is a leading global provider of vehicle rental services, operating primarily through its Avis and Budget brands. The company serves both the commercial and consumer markets, offering a wide range of vehicle rental options from economy cars to luxury vehicles. Avis Budget Group operates in various sectors including airport rentals, off-airport rentals, and car-sharing services, catering to diverse mobility needs worldwide.

How the Company Makes Money

Avis Budget Group generates revenue primarily through its vehicle rental services. The company's key revenue streams include rental fees charged to customers for the use of vehicles, additional fees for services such as GPS navigation, child safety seats, and fuel options, as well as insurance and protection packages. Avis Budget also earns money from selling used vehicles through its fleet management strategy. Significant partnerships with airlines, credit card companies, and travel agencies enhance its revenue by providing a steady flow of customers and facilitating broader market reach. Additionally, the company benefits from its loyalty programs and corporate accounts, which contribute to a consistent customer base and repeat business.

Avis Budget Financial Statement Overview

Summary

Avis Budget faces significant financial challenges with high leverage and negative earnings. While there is solid operating cash flow, the negative free cash flow and substantial debt raise concerns about long-term financial health.

Income Statement

Avis Budget shows a mixed performance in its income statement. The gross profit margin stands at 40.5% for the TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the company reported a negative net income leading to a net loss margin, which is a significant concern. Revenue has declined slightly from the previous year, showing negative growth, which might indicate challenges in market demand or competitive pressures.

Balance Sheet

The balance sheet presents a challenging picture with a high debt-to-equity ratio due to negative stockholders' equity, reflecting significant leverage and financial risk. The equity ratio is also negative, which raises concerns about financial stability. These factors highlight potential risks in the company's capital structure and liquidity.

Cash Flow

The cash flow statement reveals a concerning trend with negative free cash flow, although there is consistent operating cash flow generation. The operating cash flow to net income ratio is strong, indicating good cash conversion from earnings, but the free cash flow to net income ratio is negative, highlighting capital expenditure challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.79B	12.01B	11.99B	9.31B	5.40B
Gross Profit	3.00B	4.77B	10.76B	7.80B	3.72B
EBITDA	2.67B	5.66B	7.15B	4.74B	2.17B
Net Income	-1.82B	1.63B	2.76B	1.28B	-684.00M
Balance Sheet
Total Assets	29.04B	32.57B	25.93B	22.60B	17.54B
Cash, Cash Equivalents and Short-Term Investments	534.00M	555.00M	570.00M	534.00M	692.00M
Total Debt	26.04B	26.45B	20.92B	17.80B	13.66B
Total Liabilities	31.36B	32.91B	26.63B	22.81B	17.69B
Stockholders Equity	-2.33B	-349.00M	-703.00M	-220.00M	-155.00M
Cash Flow
Free Cash Flow	-6.54B	-11.63B	576.00M	-2.59B	3.95B
Operating Cash Flow	3.52B	3.83B	4.71B	3.49B	691.00M
Investing Cash Flow	-2.75B	-7.35B	-4.30B	-6.31B	3.18B
Financing Cash Flow	-781.00M	3.51B	-360.00M	2.69B	-4.04B

Avis Budget Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 203.88 is above the 20-day moving average (MA) of 191.93, above the 50-day MA of 155.07, and above the 200-day MA of 103.27, indicating a bullish trend. The MACD of 14.74 indicates Positive momentum. The RSI at 72.68 is Negative, neither overbought nor oversold. The STOCH value of 71.08 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
MGRC	82 Outperform	$3.11B	12.29	23.85%	1.50%	8.78%	117.40%
R	74 Outperform	$7.45B	15.60	16.38%	1.77%	3.68%	6.61%
HRI	66 Neutral	$4.98B	33.41	1.41%	2.21%	11.41%	-92.67%
Sector *	58 Neutral	HK$14.89B	4.69	-2.78%	5.83%	3.80%	-54.55%
CAR	55 Neutral	$7.25B	8.26	78.26%	―	-2.25%	-395.93%
HTZ	51 Neutral	$2.15B	―	-244.63%	―	-6.61%	-1516.07%

Avis Budget Corporate Events

Avis Budget Refinances Loans with JPMorgan Chase

On July 16, 2025, Avis Budget Group, Inc. and its subsidiaries refinanced their existing tranche B term loans with new repriced loans under a Tenth Amendment to their credit agreement with JPMorgan Chase Bank. The new loans, amounting to $1,148,846,850, will mature in 2032 and offer a choice of interest rates. This refinancing is part of Avis Budget’s financial strategy to manage its debt obligations effectively.

The most recent analyst rating on (CAR) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Appoints Daniel Cunha as New CFO

On June 9, 2025, Avis Budget Group announced the appointment of Daniel Cunha as Chief Financial Officer, effective July 1, 2025, succeeding Izzy Martins who will leave on June 30, 2025, to pursue other opportunities. Cunha, with a strong background in strategic financial leadership from his previous roles at Orion Services Group, Ocean Spray, and Heinz North America, will lead the company’s finance functions and contribute to its long-term strategic objectives. Martins will assist in the transition until August 31, 2025, after serving the company for over 20 years.

The most recent analyst rating on (CAR) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Issues $736.5M Asset-Backed Securities

On May 28, 2025, Avis Budget‘s subsidiary, Avis Budget Rental Car Funding (AESOP) LLC, issued $736.5 million in asset-backed securities with maturities of three and five years. These securities are secured by vehicles in the company’s domestic fleet and other related assets, indicating a strategic move to leverage its existing assets for financial growth and stability.

The most recent analyst rating on (CAR) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Approves Key Governance Changes at Meeting

On May 14, 2025, Avis Budget Group, Inc. held its 2025 Annual Meeting of Shareholders where several key proposals were voted on. The election of directors and the ratification of Deloitte & Touche LLP as auditors were approved. However, proposals to amend the charter to remove supermajority vote requirements and revise vote requirements for certain by-law amendments were not approved. Notably, the proposal to revise vote requirements for the removal of directors and allocate voting privileges over charter amendments affecting preferred stockholders were approved, indicating a shift in governance structure.

The most recent analyst rating on (CAR) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Avis Budget Issues $600M in Senior Notes

On May 19, 2025, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., subsidiaries of Avis Budget Group, issued $600 million in 8.375% Senior Notes due 2032. The proceeds are intended for general corporate purposes, including debt repayment. The issuance aims to strengthen the company’s financial position and provide flexibility in managing its debt obligations.

The most recent analyst rating on (CAR) stock is a Buy with a $155.00 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 April 30, 2025, Avis Budget Group’s subsidiary, Avis Budget Rental Car Funding (AESOP) LLC, completed an amendment and extension of its asset-backed variable-funding financing facilities, increasing the Series 2010-6 Notes facility to $3.042 billion and the Series 2015-3 Notes facility to $198 million. These amendments are expected to enhance the company’s financial flexibility in managing its car rental fleet in the U.S. Additionally, on May 6, 2025, Avis Budget Group amended its Cooperation Agreement with SRS Investment Management, LLC, altering the voting rights protocol for SRS’s excess shares at the 2025 annual stockholders meeting, which may influence future shareholder voting dynamics.