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Auto Trader
(LSE:AUTO)
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Rating:71Outperform
Price Target:
556.00 p
â–²(17.82% 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 & cash generation
Very high margins and strong free cash flow mean the business consistently converts revenue into cash, supporting reinvestment, buybacks and dividends without eroding operations. Durable profitability reflects pricing power and the low marginal cost of a digital marketplace, cushioning cycles and funding product and AI investment to sustain long-term earnings quality.
Negative Factors
Rising leverage
A material step‑up in borrowing reduces balance‑sheet conservatism and financial flexibility. Higher leverage increases refinancing and covenant risk and makes the company more vulnerable if dealer demand softens. It also constrains management's ability to fund growth or absorb shocks while pursuing aggressive buybacks and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & cash generation
Very high margins and strong free cash flow mean the business consistently converts revenue into cash, supporting reinvestment, buybacks and dividends without eroding operations. Durable profitability reflects pricing power and the low marginal cost of a digital marketplace, cushioning cycles and funding product and AI investment to sustain long-term earnings quality.
Read all positive factors
Auto Trader (AUTO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.92B
Dividend Yield1.81%
Average Volume (3M)2.57M
Price to Earnings (P/E)14.7
Beta (1Y)0.64
Revenue Growth3.86%
EPS Growth7.86%
CountryUK
Employees1,296
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.34
Shares Outstanding786,240,800
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
£564.43Price Target Upside19.61% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.39
Revenue Forecast (FY)£648.95M
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
Positive
471.90
Price Trends
481.64
Positive
482.32
Positive
564.96
Negative
Market Momentum
6.58
Positive
57.35
Neutral
34.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AUTO, the sentiment is Positive. The current price of 471.9 is below the 20-day moving average (MA) of 491.04, below the 50-day MA of 481.64, and below the 200-day MA of 564.96, indicating a neutral trend. The MACD of 6.58 indicates Positive momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 34.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £3.22B | 15.51 | 264.68% | 1.65% | 9.04% | 14.80% | |
71 Outperform | £3.92B | 14.68 | 60.53% | 1.81% | 3.86% | 7.86% | |
71 Outperform | £775.22M | 19.95 | 13.93% | 1.69% | 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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499.00
-318.46
-38.96%
GB:RMV
Rightmove
434.30
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GB:BCG
Baltic Classifieds Group Plc
182.10
-184.67
-50.35%
Auto Trader Corporate Events
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...
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...
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.