Auto Trader Group PLC (GB:AUTO)
LSE:AUTO
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Auto Trader
(LSE:AUTO)
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Rating:71Outperform
Price Target:
500.00 p
▲(5.95% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by strong financial quality (very high margins and strong cash generation), supported by reasonable valuation and generally constructive FY27 guidance/capital returns. These positives are tempered by clearly weak technicals (price below all key moving averages with negative MACD) and operational risks flagged on the earnings call (retailer churn/stock pressure and softer near-term revenue momentum).
Positive Factors
High profitability and cash conversion
Auto Trader's very high margins and near-complete cash conversion create durable free cash flow that funds buybacks, dividends and product investment. Strong operating leverage supports resilience through modest revenue cycles and underpins sustainable capital returns and balance-sheet flexibility.
Negative Factors
Higher leverage after debt increase
The step-up in borrowings reduces financial conservatism and increases refinancing and covenant risk if growth weakens. Higher leverage constrains strategic optionality, makes buyback-led EPS support more sensitive to cash flow swings, and raises downside financial risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and cash conversion
Auto Trader's very high margins and near-complete cash conversion create durable free cash flow that funds buybacks, dividends and product investment. Strong operating leverage supports resilience through modest revenue cycles and underpins sustainable capital returns and balance-sheet flexibility.
Read all positive factors
Auto Trader (AUTO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.69B
Dividend Yield1.81%
Average Volume (3M)2.57M
Price to Earnings (P/E)6.8
Beta (1Y)0.61
Revenue Growth3.86%
EPS Growth9.38%
CountryUK
Employees1,296
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.34
Shares Outstanding812,205,570
10 Day Avg. Volume2,468,727
30 Day Avg. Volume2,571,974
Financial Highlights & Ratios
PEG Ratio2.20
Price to Book (P/B)9.92
Price to Sales (P/S)6.47
P/FCF Ratio13.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£558.13Price Target Upside18.27% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.39
Revenue Forecast (FY)£651.31M
Auto Trader Business Overview & Revenue Model
Company Description
Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; ...
How the Company Makes Money
Auto Trader primarily makes money by selling online advertising and subscription products to automotive retailers (dealers) who list their vehicles on its marketplace. Retailers pay recurring fees for packages that provide vehicle listings and acc...
Auto Trader Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial progress (4% revenue growth, 4% operating profit growth, 8% EPS gain, strong audience metrics, accelerated buybacks and substantial AI/product momentum) with notable near-term challenges (retailer profitability pressures, retailer churn, reduced paid stock, declines in consumer services and employee engagement, and higher costs/emissions). Management provided concrete FY27 guidance, expects stock and retailer metrics to recover, and reiterated confidence in AI-driven product road map and capital returns.Positive Updates
Revenue and Profit Growth
Group revenue increased 4% to GBP 585.3m and total group operating profit increased 4% to GBP 392.7m (Auto Trader core operating profit GBP 408m); operating margins remained stable (Auto Trader ~70%, group ~63%).
Negative Updates
Retailer Profitability Pressure and Churn
Retailer profitability was weaker than expected (acute in Nov–Dec), leading to retailer redundancies, store restructures and higher cancellation levels that impacted FY26 results and the run rate into FY27; average retailers declined 0.5% to 13,942 and the year-end position was 460 fewer paying retailers versus the H1 exit.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue and Profit Growth
Group revenue increased 4% to GBP 585.3m and total group operating profit increased 4% to GBP 392.7m (Auto Trader core operating profit GBP 408m); operating margins remained stable (Auto Trader ~70%, group ~63%).
Read all positive updates
Company Guidance
Guidance for FY‑27: the Group expects operating profit of £395–415m (with group margins at least maintained excluding vehicle/accessory sales) and at least high‑single‑digit EPS growth driven by continued buybacks (planning ~£500m of purchases in FY‑27 after acquiring £369.1m of shares in FY‑26 — 58.5m shares, 6.6% of issued capital — and 3.5x more shares in H2 vs H1); the Board will seek authority to repurchase up to 15% of issued share capital and expects net debt to move towards ~1x EBITDA. Revenue/outlook drivers include Auto Trader revenue flat in April but H2 growth expected, a packaging event adding £85–95 to the ARPA price lever, product growth adding £65–75, stock improving to around -£30 to -£40 for the full year, and average retailer forecourts expected down c.1–2% for the year. Autorama is guided to a small profit with commission & ancillary revenue up c.8–12% and vehicle/accessory sales around £40m; capital allocation policy targets returning ~1/3 of net income via dividends and over £1bn to shareholders across FY‑26 and FY‑27 (final dividend declared 7.8p, full‑year dividends +9% YoY).Auto Trader Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
73
Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 624.30M | 601.10M | 570.90M | 500.20M | 262.80M |
| Gross Profit | 470.60M | 601.10M | 450.30M | 347.10M | 256.50M |
| EBITDA | 412.00M | 397.90M | 366.90M | 308.50M | 167.00M |
| Net Income | 293.90M | 282.60M | 256.90M | 233.90M | 127.80M |
Balance Sheet | |||||
| Total Assets | 685.30M | 639.60M | 658.00M | 662.70M | 534.50M |
| Cash, Cash Equivalents and Short-Term Investments | 18.20M | 15.30M | 18.70M | 16.60M | 45.70M |
| Total Debt | 206.00M | 3.50M | 34.60M | 68.70M | 35.10M |
| Total Liabilities | 278.20M | 70.20M | 105.70M | 135.40M | 75.80M |
| Stockholders Equity | 407.10M | 569.40M | 552.30M | 527.30M | 458.70M |
Cash Flow | |||||
| Free Cash Flow | 298.90M | 300.60M | 283.70M | 263.40M | 120.30M |
| Operating Cash Flow | 326.20M | 304.60M | 287.50M | 266.80M | 121.70M |
| Investing Cash Flow | -22.90M | 1.60M | 1.80M | -129.60M | -11.40M |
| Financing Cash Flow | -300.40M | -309.60M | -283.80M | -171.90M | -102.20M |
Auto Trader Technical Analysis
Negative
471.90
Price Trends
487.19
Negative
503.00
Negative
616.77
Negative
Market Momentum
-8.40
Positive
29.21
Positive
9.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AUTO, the sentiment is Negative. The current price of 471.9 is below the 20-day moving average (MA) of 493.42, below the 50-day MA of 487.19, and below the 200-day MA of 616.77, indicating a bearish trend. The MACD of -8.40 indicates Positive momentum. The RSI at 29.21 is Positive, neither overbought nor oversold. The STOCH value of 9.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AUTO.
Auto Trader Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | £3.29B | 18.49 | 264.68% | 1.65% | 9.04% | 14.80% | |
71 Outperform | £3.69B | 6.75 | 60.53% | 1.81% | 3.86% | 9.38% | |
68 Neutral | £823.65M | 15.59 | 13.93% | 1.69% | 9.55% | 29.82% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
GB:AUTO
Auto Trader
439.20
-447.20
-50.45%
GB:RMV
Rightmove
431.80
-314.45
-42.14%
GB:BCG
Baltic Classifieds Group Plc
187.60
-170.29
-47.58%
Auto Trader Corporate Events
Regulatory Filings and Compliance
Auto Trader directors boost stakes with modest share purchases
Positive
May 21, 2026
Auto Trader Group plc has disclosed share purchases by two senior board members, in line with UK Market Abuse Regulation requirements. Chairman Matt Davies acquired 5,532 ordinary shares, while non-executive director Amanda James bought 5,477 shar...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Autotrader lifts profit, steps up buybacks as digital edge widens
Positive
May 21, 2026
Autotrader Group reported a 4% rise in group revenue to £624.3m and a 4% increase in operating profit to £392.7m for the year to 31 March 2026, with margins holding at 63% despite tougher trading conditions. Growth was driven by a 5% inc...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Advances Share Buyback, Cuts Free-Float and Updates Voting Rights
Positive
May 18, 2026
Autotrader Group plc has repurchased a total of 1,985,000 ordinary shares between 11 May and 15 May 2026 through Merrill Lynch International for cancellation as part of its ongoing share buyback programme. Following these transactions, the company...
Stock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Capital with Latest Buyback, Alters Voting Rights Base
Neutral
May 11, 2026
Autotrader Group plc has repurchased 1.64 million of its ordinary shares for cancellation between 5 and 8 May 2026, executing the transactions through Merrill Lynch International at volume‑weighted average prices ranging from about 490p to 5...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Cuts Share Count with Latest Buyback Tranche
Positive
May 5, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing 2.1 million ordinary shares between 27 April and 1 May 2026 via Merrill Lynch International for cancellation. The purchases were executed at volume-weighted average price...
Regulatory Filings and Compliance
Auto Trader Updates Share Capital and Voting Rights Structure
Neutral
May 1, 2026
Auto Trader Group plc reported that as of 30 April 2026 it had 820,602,631 ordinary shares of £0.01 each in issue, with each share carrying one voting right. Of these, 4,363,294 shares are held in treasury, leaving 816,239,337 voting rights i...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count with April Buyback Programme
Positive
Apr 27, 2026
Autotrader Group plc has continued its capital management strategy by repurchasing a total of 1,652,165 ordinary shares between 20 and 24 April 2026 through Merrill Lynch International for cancellation. The buyback activity, executed at volume-wei...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Share Count With Latest Buyback
Positive
Apr 20, 2026
Autotrader Group plc has repurchased and cancelled 1,227,636 ordinary shares between 13 and 17 April 2026, at volume-weighted average prices ranging from about 471p to 509p per share, as part of its ongoing share buyback programme executed via Mer...
Business Operations and StrategyFinancial Disclosures
Autotrader Sets Date for Full-Year Results as It Deepens Role in UK Auto Market
Positive
Apr 14, 2026
Autotrader Group plc, the UK’s leading digital automotive marketplace and a FTSE 100 constituent, operates a data-driven platform that underpins much of the UK car buying process and supports retailers with advanced technology solutions. The...
Stock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count with Latest Buyback Tranche
Positive
Apr 13, 2026
Autotrader Group plc has repurchased 1.56 million of its ordinary shares for cancellation between 7 and 10 April 2026, executing the transactions via Merrill Lynch International at volume-weighted average prices ranging from about 474p to 482p. Fo...
Stock BuybackRegulatory Filings and Compliance
Autotrader Tightens Share Base with Fresh Buyback Tranche
Neutral
Apr 7, 2026
Autotrader Group plc has repurchased 780,000 of its own ordinary shares between 1 and 2 April 2026 through Merrill Lynch International, with the shares acquired for cancellation as part of its ongoing buyback activity. Following these transactions...
Regulatory Filings and Compliance
Auto Trader Updates Share Capital and Voting Rights Total
Neutral
Apr 1, 2026
Auto Trader Group plc has reported that, as of the close of business on 31 March 2026, it had 827,502,432 ordinary shares in issue at a nominal value of £0.01 each, with each share carrying one voting right. Of these, 4,412,082 ordinary share...
Regulatory Filings and Compliance
Auto Trader CEO Restructures Shareholding Without Changing Overall Stake
Neutral
Mar 26, 2026
Auto Trader Group has disclosed an internal shareholding reorganisation involving its chief executive, in line with U.K. market abuse regulations. Chief executive Nathan Coe transferred 3,430,087 ordinary shares into joint ownership with Natasha L...
Stock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Capital with Latest Buyback Tranche
Positive
Mar 19, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing 525,344 ordinary shares on 19 March 2026 through Deutsche Bank’s Deutsche Numis unit at an average price of 481.2437 pence for cancellation. Following this latest t...
Stock BuybackRegulatory Filings and Compliance
Autotrader Buys Back 510,000 Shares, Updates Voting Rights
Neutral
Mar 18, 2026
Autotrader Group plc has continued its share buyback activity, repurchasing 510,000 ordinary shares on 18 March 2026 via Deutsche Bank AG’s London branch for cancellation at an average price of 486.8305 pence, within a trading range of 480.4...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader buys back 515,000 shares, trims free float and voting rights
Positive
Mar 17, 2026
Autotrader Group plc has repurchased 515,000 of its ordinary shares for cancellation on 17 March 2026, at an average price of 485.9932 pence per share, as part of its ongoing buyback programme executed through Deutsche Numis. Following this transa...
Stock BuybackRegulatory Filings and Compliance
Autotrader Continues Buyback With 510,000-Share Repurchase
Positive
Mar 16, 2026
Autotrader Group plc has executed a further tranche of its share buyback programme, repurchasing 510,000 ordinary shares for cancellation on 16 March 2026 at an average price of about 487.47 pence per share via Deutsche Bank’s London branch....
Stock BuybackRegulatory Filings and Compliance
Autotrader Repurchases 769,000 Shares, Adjusts Voting Rights Count
Neutral
Mar 12, 2026
Autotrader Group plc has repurchased 769,278 of its own ordinary shares on 12 March 2026 for cancellation at an average price of about 489 pence, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transa...
Stock BuybackRegulatory Filings and Compliance
Autotrader Buys Back 765,000 Shares, Trims Free Float and Voting Base
Neutral
Mar 11, 2026
Autotrader Group plc has repurchased 765,000 of its own ordinary shares for cancellation at an average price of 486.6189 pence, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transaction, the company...
Stock Buyback
Autotrader Tightens Free Float with Buyback of 785,000 Shares
Neutral
Mar 10, 2026
Autotrader Group plc has repurchased 785,000 of its own ordinary shares for cancellation on 10 March 2026, at an average price of 489.2409 pence, as part of its ongoing share buyback programme executed through Deutsche Bank’s London branch. ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Share Count With £3.7m Buyback
Positive
Mar 9, 2026
Autotrader Group plc has repurchased 760,000 of its own ordinary shares for cancellation on 9 March 2026, at an average price of 483.5960 pence, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transac...
Stock BuybackRegulatory Filings and Compliance
Autotrader Cancels 531,493 Shares After Latest Buyback Transaction
Neutral
Mar 5, 2026
Autotrader Group has repurchased 531,493 of its own ordinary shares on 5 March 2026, at an average price of 473.8512 pence, as part of its ongoing share buyback programme and will cancel these shares. Following this transaction, the company has 83...
Stock Buyback
Autotrader Buys Back 535,000 Shares, Trims Free-Float Voting Stock
Positive
Mar 4, 2026
Autotrader Group plc has repurchased 535,000 of its ordinary shares on 4 March 2026 for cancellation, at an average price of 469.1816 pence, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transaction...
Stock Buyback
Autotrader Tightens Free Float With 520,000‑Share Buyback
Positive
Mar 3, 2026
Autotrader Group plc has repurchased 520,000 of its own ordinary shares for cancellation on 3 March 2026, at an average price of 475.4625 pence, as part of its ongoing share buyback programme executed through Deutsche Bank’s London branch. F...
Stock BuybackRegulatory Filings and Compliance
Autotrader Buys Back 515,000 Shares, Updates Voting Rights After Capital Return Move
Positive
Mar 2, 2026
Autotrader Group plc has repurchased 515,000 of its ordinary shares for cancellation on 2 March 2026 at an average price of 485.2391 pence, as part of its ongoing share buyback programme executed through Deutsche Bank’s Deutsche Numis unit. ...
Regulatory Filings and Compliance
Auto Trader Updates Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
Auto Trader Group has disclosed its latest share capital and voting rights position in line with U.K. market transparency rules. The company reports 834,743,547 ordinary shares in issue at a nominal value of £0.01 each, of which 4,455,088 are...
Stock BuybackRegulatory Filings and Compliance
Auto Trader Cancels 750,000 Shares in Ongoing Buyback Programme
Neutral
Feb 27, 2026
Auto Trader Group plc has repurchased 750,000 of its ordinary shares for cancellation on 27 February 2026 at an average price of 489.0960 pence, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transac...
Stock BuybackRegulatory Filings and Compliance
Autotrader Buys Back 384,671 Shares, Updates Voting Rights Count
Neutral
Feb 27, 2026
Autotrader Group plc has repurchased 384,671 of its ordinary shares for cancellation at an average price of 477.5763 pence per share, as part of its ongoing share buyback programme executed through Deutsche Numis. Following this transaction, the c...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Capital With 625,000-Share Buyback
Positive
Feb 25, 2026
Autotrader Group plc has repurchased 625,000 of its ordinary shares for cancellation on 25 February 2026 at an average price of 474.6258 pence, as part of its ongoing share buyback programme executed through Deutsche Bank’s Deutsche Numis un...
Stock BuybackRegulatory Filings and Compliance
Autotrader Buys Back 640,000 Shares, Trimming Free Float and Voting Rights
Positive
Feb 24, 2026
Autotrader Group plc has executed a share buyback transaction, purchasing 640,000 of its own ordinary shares for cancellation at an average price of 472.4262 pence per share, with prices ranging between 466.50p and 478.00p. Following this move, th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Share Base with 625,000-Share Buyback
Positive
Feb 23, 2026
Autotrader Group plc has executed a share buyback transaction, repurchasing 625,000 of its ordinary shares for cancellation on 23 February 2026 at an average price of 476.4823 pence, with prices ranging between 471.10 pence and 485.00 pence. Follo...
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.