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Avis Budget (CAR) AI Stock Analysis
Avis Budget
(NASDAQ:CAR)
The score is held down primarily by stressed financials—high leverage with negative equity, significant recent net losses, and deeply negative free cash flow despite solid operating cash flow. Offsetting factors include a somewhat improved near-term technical picture and a more constructive outlook from the latest earnings call (expected EBITDA improvement), but these are not enough to outweigh the balance-sheet and cash-flow risk.
Avis Budget (CAR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.23B
- Dividend Yield
- ―
- Average Volume (3M)
- 393.41K
- Price to Earnings (P/E)
- -5.2
- Beta (1Y)
- 1.60
- Revenue Growth
- -0.60%
- EPS Growth
- 61.34%
- Country
- US
- Employees
- 21,000
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Rental & Leasing Services
Avis Budget Business Overview & Revenue Model
Company Description
Avis Budget Group, Inc. is a prominent global provider of diverse mobility solutions, delivering vehicle rental services for both cars and trucks, alongside car-sharing options, to a broad clientele encompassing businesses and individual consumers. T...
How the Company Makes Money
Avis Budget Group makes money primarily by renting vehicles to customers under its brands (Avis, Budget, and others) across airport and off-airport locations, and by offering car-sharing through Zipcar. Its key revenue streams typically include: (1)...
Avis Budget Earnings Call Summary
The call was mixed. Avis demonstrated meaningful operational progress through higher utilization, improved fleet productivity, pricing momentum, stronger free cash flow, debt-reduction actions, and multiple technology and cost initiatives. However, third-quarter financial results missed expectations because of weaker travel demand, lower rental days, unfavorable revenue mix, elevated recall costs, higher Americas fleet costs, and operating expenses that adjusted too slowly. Management provided a constructive fourth-quarter and full-year outlook, but demand remains weak and several strategic initiatives are still being developed.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fourth quarter, Avis expects adjusted EBITDA of approximately $165 million compared with $5 million in the fourth quarter last year, per-unit costs of $310-$320 per month, RPD growth to more than offset the decline in rental days, low single-digit revenue growth for the consolidated business, and substantial year-over-year growth in adjusted EBITDA; pricing is expected to contribute a $60 million-$65 million increase in EBITDA-related pricing, or about 3 points, utilization about another $30 million from 2-2.5 points improvements, and net depreciation $25 million-$30 million of year-over-year benefit. For full-year 2026, the company expects approximately $850 million of adjusted EBITDA, the low end of the range we provided in July, representing roughly 14% growth over 2025, with per-unit costs of $315-$325 per month unchanged. October trends included an Americas fleet down roughly 7% year-over-year, rental days down approximately 3%, and RPD up 4%, while forward bookings showed similar trends; the company expects tangible financial benefit from revenue-management modernization by the summer of 2027 and described $1 billion of sustainable long-term EBITDA as a bare minimum and immediately achievable.
Avis Budget Financial Statement Overview
Summary
Overall fundamentals are weak. Income statement quality is pressured by sizable TTM net losses despite some operating-margin improvement. Cash flow shows strong operating cash generation but deeply negative free cash flow, and the balance sheet is highly leveraged with negative equity, limiting financial flexibility.
Income Statement
41NeutralBalance Sheet
18Very NegativeCash Flow
29Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.63B | 11.65B | 11.79B | 12.01B | 11.99B | 9.31B |
| Gross Profit | 3.60B | 2.85B | 3.00B | 3.93B | 4.77B | 3.39B |
| EBITDA | 5.11B | 4.44B | 2.67B | 6.43B | 7.15B | 4.74B |
| Net Income | -812.00M | -889.00M | -1.82B | 1.63B | 2.76B | 1.28B |
Balance Sheet | ||||||
| Total Assets | 31.51B | 32.19B | 29.95B | 33.42B | 25.93B | 22.60B |
| Cash, Cash Equivalents and Short-Term Investments | 561.00M | 519.00M | 537.00M | 559.00M | 572.00M | 537.00M |
| Total Debt | 28.26B | 31.17B | 26.04B | 26.45B | 20.92B | 17.80B |
| Total Liabilities | 34.55B | 35.24B | 32.27B | 33.76B | 26.63B | 22.81B |
| Stockholders Equity | -3.21B | -3.13B | -2.33B | -349.00M | -703.00M | -220.00M |
Cash Flow | ||||||
| Free Cash Flow | -11.03B | -11.98B | -6.54B | -11.63B | 576.00M | -2.59B |
| Operating Cash Flow | 2.70B | 3.30B | 3.52B | 3.83B | 4.71B | 3.49B |
| Investing Cash Flow | -2.39B | -5.16B | -2.75B | -7.35B | -4.30B | -6.31B |
| Financing Cash Flow | -286.00M | 1.86B | -781.00M | 3.51B | -360.00M | 2.69B |
Avis Budget Technical Analysis
Price Trends
Market Momentum
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 119.81 is above the 20-day moving average (MA) of 105.84, above the 50-day MA of 115.06, and below the 200-day MA of 153.50, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAR.
Avis Budget Risk Analysis
Avis Budget disclosed 32 risk factors in its most recent earnings report. Avis Budget reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksAvis Budget Peers Comparison
Overall Rating
R75Outperform
HRI58Neutral
UHAL53Neutral- CAR47Neutral
HTZ46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| R | 75Outperform | $10.77B | 21.55 | 17.68% | 1.32% | 3.16% | 10.17% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| HRI | 58Neutral | $5.69B | 43.05 | 6.37% | 1.77% | 19.38% | ― |
| UHAL | 53Neutral | $10.28B | 148.29 | 0.60% | ― | 3.02% | -89.75% |
| CAR | 47Neutral | $3.86B | -5.20 | 24.71% | ― | -0.60% | 61.34% |
| HTZ | 46Neutral | $737.85M | -2.54 | 50.96% | ― | 3.39% | 89.28% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CAR | Avis Budget Group | 119.81 | -23.50 | -16.40% | |
| UHAL | U-Haul Holding Company | 60.80 | 7.68 | 14.46% | |
| HRI | Herc Holdings Inc. | 158.41 | 23.98 | 17.84% | |
| R | Ryder System | 283.12 | 116.66 | 70.08% | |
| HTZ | Hertz Global Holdings Inc | 2.26 | -4.32 | -65.65% | |
| LIME | Neutron Holdings, Inc. | 18.39 | -7.61 | -29.27% |
Avis Budget Corporate Events
Avis Budget Announces Redemption of Senior Notes Due 2027
NeutralAvis Budget Car Rental, LLC and Avis Budget Finance, Inc. are wholly owned subsidiaries of Avis Budget Group, Inc.; the release provides no industry or service description. On November 2, 2026, the subsidiaries delivered notice that all $350 million...
Avis Budget Secures Settlement, Plans Debt Repayment
PositiveOn October 5, 2026, Avis Budget Group, Inc. received a $650 million cash settlement from Pentwater Capital Management LP and affiliated parties, resolving its lawsuit over the recovery of short-swing profits under Section 16(b) of the Securities Exch...
Avis Budget Issues New Asset-Backed Fleet Securities
PositiveOn September 21, 2026, Avis Budget’s subsidiary Avis Budget Rental Car Funding (AESOP) LLC issued $650 million in five-year asset-backed securities secured by vehicles in its domestic fleet and related assets. The issuance comprised multiple tr...
Avis Budget Announces Departure of Chief Digital Officer
NeutralOn September 1, 2026, Avis Budget Group, Inc. announced that Executive Vice President and Chief Digital & Innovation Officer Ravi Simhambhatla will be leaving the company, with his departure set for September 30 to allow for a smooth transition....
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.
Date of analysis: Nov 05, 2026