Auto Trader (AUTO) AI Stock Analysis

• Market Cap: £6.82B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.75
• Revenue Growth: 5.29%
• EPS Growth: 12.50%
• Country: UK
• Employees: 1,296
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): 0.16
• Shares Outstanding: 870,502,500
• 10 Day Avg. Volume: 1,683,772
• 30 Day Avg. Volume: 1,398,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £761.67
• Price Target Upside: -2.77% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: 879.00p ▲(12.20% Upside)

Auto Trader's strong financial performance and positive earnings call are the primary drivers of its score. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. Challenges highlighted in the earnings call, such as the digital services tax and declining used car prices, also weigh on the overall score.

Positive Factors

Revenue Growth

Consistent revenue and profit growth indicate strong market demand and effective business strategies, supporting long-term financial health.

Strong Market Position

A robust market position with high engagement levels ensures competitive advantage and sustained market leadership.

Product Innovation

Innovative product launches like Co-Driver AI enhance customer engagement and open new revenue streams, driving future growth.

Negative Factors

Digital Services Tax Impact

Increased costs from the digital services tax can pressure profit margins, affecting long-term profitability and cost management.

Challenges in Vehicle Pricing

Declining used car prices can reduce revenue per transaction, impacting overall revenue growth and profitability.

Autorama Segment Losses

Continued losses in the Autorama segment could strain resources and divert focus from core profitable operations.

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; and display advertising on its websites for manufacturers and their advertising agencies. It offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Auto Trader generates revenue primarily through listing fees charged to car dealerships and private sellers for advertising their vehicles on its platform. The company operates a subscription model for dealerships, offering various packages that provide different levels of visibility and additional services such as vehicle valuation tools and market insights. In addition to listing fees, Auto Trader earns money through data services and partnerships, supplying market analytics and insights to automotive businesses. The company also engages in partnerships with financial service providers, enhancing its revenue through referral fees for financing options offered to buyers. Overall, Auto Trader's diversified revenue streams, combined with its strong market position, contribute significantly to its earnings.

Auto Trader Financial Statement Overview

Summary

Auto Trader demonstrates strong financial performance with consistent revenue growth, robust profit margins, and effective cash flow management. The balance sheet is solid with low leverage and high equity backing, positioning the company well for future growth.

Income Statement

Auto Trader has consistently demonstrated strong revenue growth with a 5.3% increase from 2024 to 2025. The company maintains robust gross and net profit margins, indicating effective cost management and profitability. EBIT and EBITDA margins remain healthy, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio, indicating minimal leverage and financial stability. Return on equity is impressive, reflecting efficient use of shareholder funds. A high equity ratio indicates a solid asset base backed by equity.

Cash Flow

Auto Trader's cash flow is robust, with consistent free cash flow generation and growth. The operating cash flow to net income ratio is strong, showing good cash conversion from profits. The free cash flow to net income ratio demonstrates efficient capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	601.10M	601.10M	570.90M	500.20M	432.70M	262.80M
Gross Profit	454.00M	601.10M	450.30M	347.10M	425.50M	256.50M
EBITDA	394.80M	397.90M	366.90M	308.50M	307.90M	165.10M
Net Income	282.60M	282.60M	256.90M	233.90M	244.70M	127.80M
Balance Sheet
Total Assets	639.60M	639.60M	658.00M	662.70M	542.90M	534.50M
Cash, Cash Equivalents and Short-Term Investments	15.30M	15.30M	18.70M	16.60M	51.30M	45.70M
Total Debt	3.50M	3.50M	34.60M	68.70M	9.50M	35.10M
Total Liabilities	70.20M	70.20M	105.70M	135.40M	70.40M	75.80M
Stockholders Equity	569.40M	569.40M	552.30M	527.30M	472.50M	458.70M
Cash Flow
Free Cash Flow	304.70M	300.60M	283.70M	263.40M	275.40M	120.30M
Operating Cash Flow	308.70M	304.60M	287.50M	266.80M	278.20M	121.70M
Investing Cash Flow	-3.70M	1.60M	1.80M	-129.60M	-2.80M	-11.40M
Financing Cash Flow	-308.40M	-309.60M	-283.80M	-171.90M	-269.80M	-102.20M

Auto Trader Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 783.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 783.4 is below the 20-day moving average (MA) of 801.09, below the 50-day MA of 811.00, and below the 200-day MA of 796.58, indicating a bearish trend. The MACD of -6.05 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AUTO.

Auto Trader Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONY	74 Outperform	£1.07B	13.23	37.18%	6.18%	-0.18%	8.24%
AUTO	73 Outperform	£6.82B	24.74	50.39%	1.34%	5.29%	12.50%
BCG	73 Outperform	£1.56B	42.57	12.93%	1.00%	12.26%	38.72%
RMV	64 Neutral	£5.59B	27.97	275.77%	0.99%	8.63%	5.20%
Sector *	60 Neutral	$47.27B	4.55	-11.27%	4.14%	1.88%	-40.90%

Auto Trader Corporate Events

Auto Trader Enhances Shareholder Value with Share Buyback

Auto Trader Group plc announced the repurchase of 313,400 of its ordinary shares for cancellation at an average price of 783.0921 pence per share. This transaction, conducted through Merrill Lynch International, is part of the company’s ongoing share buyback program, which aims to enhance shareholder value by reducing the number of shares in circulation. Following this buyback, the total number of voting rights in the company stands at 870,502,522. This strategic move is likely to impact the company’s market positioning by potentially increasing the value of remaining shares and demonstrating confidence in its financial health.

The most recent analyst rating on (GB:AUTO) stock is a Sell with a £7.10 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback to Enhance Shareholder Value

Auto Trader Group plc announced the repurchase of 297,000 of its ordinary shares for cancellation at an average price of 792.7302 pence per share, as part of its ongoing buyback program. This transaction reduces the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating the company’s confidence in its financial health, which may positively impact shareholder value.

The most recent analyst rating on (GB:AUTO) stock is a Sell with a £7.10 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback to Optimize Capital Structure

Auto Trader Group plc announced a share buyback transaction, purchasing 266,242 of its ordinary shares for cancellation at an average price of 812.7696 pence per share. This move is part of the company’s strategy to manage its capital structure and return value to shareholders, potentially impacting its stock liquidity and market perception.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £904.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback Program

Auto Trader Group plc announced the repurchase of 287,600 of its ordinary shares for cancellation at an average price of 804.9169 pence per share. This transaction, executed through Merrill Lynch International, is part of the company’s ongoing share buyback program, which impacts the total number of voting rights available to shareholders, now standing at 871,379,164. Such buybacks can influence the company’s stock value and shareholder equity, reflecting a strategic move to manage capital structure and potentially enhance shareholder value.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £904.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback to Enhance Shareholder Value

Auto Trader Group plc has announced the repurchase of 247,234 of its ordinary shares for cancellation at an average price of 802.4314 pence per share. This transaction, conducted through Merrill Lynch International, is part of the company’s ongoing buyback program aimed at reducing the number of shares in circulation, potentially increasing shareholder value and consolidating its market position.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £916.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback to Enhance Shareholder Value

Auto Trader Group plc announced the repurchase of 283,900 of its ordinary shares for cancellation at an average price of 792.8547 pence per share. This transaction is part of the company’s ongoing buyback program, which aims to enhance shareholder value by reducing the number of shares in circulation. Following this transaction, the total number of voting rights in the company stands at 871,913,998. This move is likely to impact the company’s market positioning by potentially increasing earnings per share and demonstrating confidence in the company’s financial health.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £916.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Executes Share Buyback to Enhance Shareholder Value

Auto Trader Group plc has announced the purchase of 281,800 of its ordinary shares for cancellation at an average price of 775.1319 pence per share. This transaction, facilitated by Merrill Lynch International, is part of the company’s ongoing share buyback program, which aims to reduce the number of shares in circulation and potentially increase shareholder value. Following this transaction, the company has 877,431,858 ordinary shares in issue, with 5,233,960 held in treasury, affecting the total number of voting rights available to shareholders.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £916.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Auto Trader Announces Share Buyback to Enhance Shareholder Value

Auto Trader Group plc has announced a buyback of 281,100 of its ordinary shares, executed through Merrill Lynch International, at an average price of 773.4007 pence per share. This transaction reduces the total number of shares in circulation and is part of a strategic move to enhance shareholder value, potentially impacting the company’s market positioning by consolidating its share base.

The most recent analyst rating on (GB:AUTO) stock is a Buy with a £916.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.