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Auto Trader
(LSE:AUTO)
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Rating:71Outperform
Price Target:
566.00 p
â–²(15.72% 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 margins & cash generation
Sustained exceptionally high margins and near‑net income free cash conversion indicate structural pricing power and a capital‑light marketplace model. This durable cash generation funds product investment, buybacks and dividends while providing a buffer against cyclical downturns.
Negative Factors
Higher leverage
A material step‑up in borrowing raises financial risk by reducing flexibility and increasing interest and covenant sensitivity. If dealer demand softens, elevated leverage constrains capital allocation and limits ability to sustain buybacks or absorb margin volatility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & cash generation
Sustained exceptionally high margins and near‑net income free cash conversion indicate structural pricing power and a capital‑light marketplace model. This durable cash generation funds product investment, buybacks and dividends while providing a buffer against cyclical downturns.
Read all positive factors
Auto Trader (AUTO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.10B
Dividend Yield2.08%
Average Volume (3M)2.57M
Price to Earnings (P/E)15.4
Beta (1Y)0.66
Revenue Growth3.86%
EPS Growth7.86%
CountryUK
Employees1,239
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.34
Shares Outstanding783,152,700
10 Day Avg. Volume2,468,727
30 Day Avg. Volume2,571,974
Financial Highlights & Ratios
PEG Ratio2.21
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
£595.86Price Target Upside21.83% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.39
Revenue Forecast (FY)£648.19M
Auto Trader Business Overview & Revenue Model
Company Description
Operating as a premier digital automotive marketplace, Auto Trader Group plc serves the United Kingdom and Ireland. The company facilitates vehicle listings for private individuals on its online platforms and extends insurance and loan financing s...
How the Company Makes Money
Auto Trader primarily makes money by selling subscription and advertising products to automotive retailers (dealers) that want to market vehicles and generate leads on its marketplace. Key revenue streams include: (1) Retailer subscriptions and ad...
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 2025 | Mar 2024 | 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
Neutral
489.10
Price Trends
491.39
Positive
488.18
Positive
540.21
Negative
Market Momentum
8.59
Negative
51.73
Neutral
67.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AUTO, the sentiment is Neutral. The current price of 489.1 is below the 20-day moving average (MA) of 510.49, below the 50-day MA of 491.39, and below the 200-day MA of 540.21, indicating a neutral trend. The MACD of 8.59 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £3.43B | 16.02 | 281.32% | 2.43% | 7.26% | 9.70% | |
71 Outperform | £4.10B | 15.41 | 60.53% | 2.23% | 3.86% | 7.86% | |
71 Outperform | £836.68M | 21.72 | 15.59% | 1.84% | 10.01% | 19.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
GB:AUTO
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511.80
-312.36
-37.90%
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Rightmove
469.90
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GB:BCG
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-43.89%
Auto Trader Corporate Events
Regulatory Filings and Compliance
Auto Trader Confirms Total Voting Rights Following Treasury Share Holdings
Neutral
Aug 3, 2026
Auto Trader Group PLC has confirmed that, as of the close of business on 31 July 2026, it had 786,199,195 ordinary shares in issue with a nominal value of £0.01 per share, each carrying one voting right. Of these, 3,967,855 shares are held in...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Free-Float with Latest Share Buyback
Positive
Aug 3, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing and cancelling a series of ordinary shares between 27 and 31 July 2026 through Merrill Lynch International. The purchases, executed at volume-weighted average prices rang...
Stock BuybackRegulatory Filings and Compliance
Autotrader Updates Market on Latest Share Buybacks and Voting Rights
Positive
Jul 27, 2026
Autotrader Group plc has continued to actively manage its share capital, confirming that between 20 July and 24 July 2026 it repurchased a total of 405,000 ordinary shares through Merrill Lynch International for cancellation. The buybacks were exe...
Business Operations and StrategyRegulatory Filings and Compliance
Autotrader launches 2026 SAYE scheme and grants share options to CFO
Positive
Jul 21, 2026
Autotrader Group plc has launched its 2026 Save As You Earn (SAYE) scheme, offering eligible employees options over ordinary shares at an exercise price of 390.96 pence. The options, granted on 21 July 2026, will typically be exercisable from 1 Se...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader tightens equity base with latest share buyback
Positive
Jul 20, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing a total of 1,005,100 ordinary shares between 13 and 15 July 2026 via Merrill Lynch International for cancellation. The purchases, executed at volume-weighted average pric...
Regulatory Filings and Compliance
Autotrader Directors Exercise Incentive Options and Disclose Share Sales
Neutral
Jul 20, 2026
Autotrader has disclosed that directors Nathan Coe and James Warner exercised nil-cost share options previously granted under the Performance Share Plan and Deferred Annual Bonus Plan. The transactions involved ordinary shares of 1 pence each in t...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Autotrader Shareholders Back All AGM Resolutions, Approve Dividend and Board Re-elections
Positive
Jul 16, 2026
Autotrader Group plc reported that all resolutions at its 16 July 2026 Annual General Meeting were passed by shareholders via poll, with 80.61% of eligible shares voted. Investors approved the annual report, the directors’ remuneration repor...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Advances Share Buyback, Updates Voting Rights
Positive
Jul 13, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing just under 1.95 million ordinary shares between 6 and 10 July 2026 via Merrill Lynch International for cancellation, at volume-weighted average prices around 491–50...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count Through Ongoing Buyback Programme
Positive
Jul 6, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing 2,150,000 ordinary shares between 29 June and 3 July 2026 through Merrill Lynch International for cancellation. The purchases were executed at volume-weighted average pri...
Regulatory Filings and Compliance
Autotrader Updates Share Count and Voting Rights for Investors
Neutral
Jul 1, 2026
Autotrader Group plc has disclosed that as of 30 June 2026 it had 791,802,626 ordinary shares in issue, each with a nominal value of £0.01 and one voting right attached. Of these, 4,300,456 ordinary shares are held in treasury, resulting in 7...
Regulatory Filings and Compliance
Autotrader Chairman Increases Stake with Share Purchase
Positive
Jun 29, 2026
Autotrader Group plc has disclosed a transaction involving its chairman, Matt Davies, who purchased 5,102 ordinary shares of the company on 29 June 2026. The trade, conducted on the London Stock Exchange at a price of £4.8999 per share for a ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Advances Capital Return with June Share Buyback
Positive
Jun 29, 2026
Autotrader Group plc has executed a share buyback, purchasing 2,150,000 ordinary shares between 22 and 26 June 2026 via Merrill Lynch International for cancellation. The transactions were conducted at volume-weighted average prices in the mid-480p...
Executive/Board Changes
Autotrader grants long-term share awards to top executives under 2024 incentive plans
Neutral
Jun 24, 2026
Autotrader Group has granted long-term share-based incentives to Chief Executive Nathan Coe and Chief Financial Officer Jamie Warner under its 2024 Long Term Incentive Plan and Deferred Bonus Plan. The nil-cost option awards, which carry dividend ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count with Latest Buyback Tranche
Positive
Jun 22, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing and cancelling several million ordinary shares between 15 June and 19 June 2026 via Merrill Lynch International at volume‑weighted average prices in the high‑...
Stock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count with Latest Buyback Tranche
Neutral
Jun 15, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing several million ordinary shares between 8 June and 12 June 2026 via Merrill Lynch International for cancellation. Following these transactions, the company now has 799,81...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Count with Further Buybacks
Positive
Jun 8, 2026
Autotrader Group plc has repurchased and cancelled a series of its own ordinary shares between 1 June and 5 June 2026, buying back roughly 5.5 million shares through Merrill Lynch International at volume-weighted average prices ranging from about ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Autotrader posts 2026 annual report and sets AGM as it deepens digital car marketplace role
Positive
Jun 8, 2026
Autotrader Group plc, the UK’s largest digital automotive marketplace and a FTSE 100 constituent, operates a data-driven platform that enhances how vehicles are bought and sold, leveraging artificial intelligence and proprietary datasets to ...
Regulatory Filings and Compliance
Auto Trader Updates Share Capital and Voting Rights Totals
Neutral
Jun 1, 2026
Auto Trader Group plc has disclosed its updated share capital structure in line with U.K. financial transparency rules. As of 29 May 2026, the company has 809,812,231 ordinary shares of £0.01 each in issue, with 4,350,911 of these held in tre...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Cuts Voting Share Capital With Latest Share Buyback
Positive
Jun 1, 2026
Autotrader Group plc has repurchased and cancelled a total of 4,610,800 ordinary shares between 26 May and 29 May 2026, executing the transactions via Merrill Lynch International at volume-weighted average prices ranging from about 426p to 445p pe...
Regulatory Filings and Compliance
Auto Trader Chairman Matt Davies Buys Additional Shares in the Company
Positive
May 27, 2026
Auto Trader Group plc disclosed that its chairman, Matt Davies, purchased 5,643 ordinary shares in the company on 27 May 2026, in a transaction valued at approximately £25,000 on the London Stock Exchange. The trade was reported as required u...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Advances Buyback With Over 2 Million Shares Repurchased
Positive
May 26, 2026
Autotrader Group plc has repurchased a total of more than 2.1 million of its ordinary shares between 18 and 22 May 2026, via Merrill Lynch International, with the shares bought for cancellation as part of its ongoing share buyback programme. Follo...
Regulatory Filings and Compliance
Autotrader Directors Boost Holdings with Coordinated Share Purchases
Positive
May 26, 2026
Autotrader Group plc has disclosed that its CEO, CFO and several non-executive directors have purchased ordinary shares in the company on the London Stock Exchange, with individual transactions ranging from roughly 4,377 to 11,000 shares at prices...
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...
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.