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CAR Group
(Sydney:CAR)
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Rating:74Outperform
Price Target:
AU$27.00
▼(-7.85% Downside)
Action:Upgraded
Date:08/17/26
The score is primarily supported by strong financial performance—high margins, solid multi-year revenue expansion, and excellent cash conversion—partly offset by increasing leverage and some volatility/one-off signals in reported profitability and free cash flow. Technicals add support due to a clear uptrend, but elevated RSI/Stoch indicate the move may be stretched. Valuation is a meaningful headwind given the high P/E, only partially mitigated by the dividend yield.
Positive Factors
High and stable profitability
Very high gross and operating margins indicate strong monetization of CAR Group’s marketplace and related services. Their general stability across years suggests operating leverage and a durable earnings base, giving the company capacity to fund investment while preserving profitability.
Negative Factors
Rising financial leverage
The increase in debt relative to equity raises financial risk even though the balance sheet remains well capitalized. Higher leverage can reduce flexibility in allocating cash toward growth or returns and makes the company more sensitive to future earnings or cash-flow weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
High and stable profitability
Very high gross and operating margins indicate strong monetization of CAR Group’s marketplace and related services. Their general stability across years suggests operating leverage and a durable earnings base, giving the company capacity to fund investment while preserving profitability.
Read all positive factors
CAR Group (CAR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.11B
Dividend Yield3.58%
Average Volume (3M)1.49M
Price to Earnings (P/E)29.4
Beta (1Y)1.28
Revenue Growth5.88%
EPS Growth13.64%
CountryAU
Employees2,900
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.83
Shares Outstanding379,382,600
10 Day Avg. Volume1,453,160
30 Day Avg. Volume1,493,733
Financial Highlights & Ratios
PEG Ratio2.27
Price to Book (P/B)3.55
Price to Sales (P/S)7.78
P/FCF Ratio19.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$33.30Price Target Upside13.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.17
Revenue Forecast (FY)AU$1.38B
CAR Group Business Overview & Revenue Model
Company Description
Established in 1996 and headquartered in Melbourne, Australia, CAR Group Limited, previously known as carsales.com Ltd until November 2023, is a global leader in online classifieds for vehicles across automotive, motorcycle, and marine categories....
How the Company Makes Money
CAR Group primarily makes money by monetizing its online automotive marketplaces and associated dealer services. A core revenue stream is fees paid by automotive dealers (and, in some cases, private sellers) to advertise vehicles on CAR-operated p...
CAR Group Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25B | 1.18B | 1.10B | 781.24M | 509.08M |
| Gross Profit | 916.30M | 1.13B | 769.81M | 550.89M | 377.51M |
| EBITDA | 667.27M | 631.75M | 585.49M | 400.36M | 286.32M |
| Net Income | 313.69M | 275.49M | 249.97M | 645.62M | 160.82M |
Balance Sheet | |||||
| Total Assets | 4.90B | 4.89B | 4.67B | 4.68B | 1.86B |
| Cash, Cash Equivalents and Short-Term Investments | 325.61M | 289.33M | 308.31M | 198.71M | 117.45M |
| Total Debt | 1.60B | 1.41B | 1.34B | 1.24B | 714.17M |
| Total Liabilities | 2.09B | 1.84B | 1.73B | 1.56B | 847.71M |
| Stockholders Equity | 2.74B | 2.98B | 2.88B | 3.07B | 1.01B |
Cash Flow | |||||
| Free Cash Flow | 498.29M | 401.22M | 314.39M | 167.38M | 145.67M |
| Operating Cash Flow | 510.12M | 520.13M | 416.19M | 254.38M | 193.94M |
| Investing Cash Flow | -312.19M | -214.81M | -137.61M | -1.57B | -831.53M |
| Financing Cash Flow | -145.89M | -331.27M | -190.62M | 1.37B | 472.26M |
CAR Group Technical Analysis
Neutral
29.30
Price Trends
24.39
Negative
25.27
Negative
25.14
Negative
Market Momentum
0.26
Negative
54.79
Neutral
72.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAR, the sentiment is Neutral. The current price of 29.3 is above the 20-day moving average (MA) of 23.27, above the 50-day MA of 24.39, and above the 200-day MA of 25.14, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CAR.
CAR Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$20.70B | 38.08 | 27.90% | 1.88% | 4.24% | -18.52% | |
74 Outperform | AU$9.11B | 29.42 | 11.28% | 3.58% | 5.88% | 13.64% | |
61 Neutral | AU$49.60M | -25.58 | -8.93% | ― | -6.17% | -191.49% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | AU$28.37M | -33.84 | -2.00% | 51.62% | -6.77% | 95.53% | |
54 Neutral | AU$102.82M | 400.00 | 14.39% | ― | 9.89% | ― | |
43 Neutral | AU$56.00M | -6.86 | -110.48% | ― | 7.17% | -27.08% |
* Communication Services Sector Average
AU:CAR
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CAR Group Corporate Events
CAR Group’s webmotors moves to acquire majority stake in Brazil’s Auto Avaliar
Oct 28, 2026
CAR Group’s Brazilian subsidiary webmotors has agreed to acquire a 51% stake in Auto Avaliar for R$543 million, or about A$144 million, in a move that deepens the group’s presence in Latin America’s vehicle trade ecosystem. Auto ...
Major Investor Ceases to Be Substantial Holder in CAR Group
Oct 21, 2026
Superannuation and Investments HoldCo Pty Ltd and related entities have filed a notice stating they have ceased to be substantial holders in CAR Group Limited as of 20 October 2026. The change reflects a reduction in their voting interest below th...
CAR Group director boosts shareholding via dividend reinvestment
Oct 12, 2026
CAR Group Limited has disclosed a change in the shareholdings of director Edwina Gilbert, following the issue of additional ordinary shares under the company’s dividend reinvestment plan. Gilbert’s direct holding has increased from 44,...
CAR Group Seeks ASX Quotation for New Shares Issued via Distribution Plan
Oct 11, 2026
CAR Group Limited has applied to the ASX for quotation of 312,289 new ordinary fully paid shares. The securities are being issued under a dividend or distribution plan, modestly increasing the company’s free-floating share base.The move refl...
CBA Exits Substantial Holder Position in CAR Group
Sep 29, 2026
CAR Group Limited, a player in the online automotive marketplace industry, provides digital platforms and listing services that connect vehicle buyers, sellers and dealers. The company operates within Australia’s regulated capital markets, w...
CAR Group sets hybrid 2026 AGM as it advances global online vehicle marketplace strategy
Sep 27, 2026
CAR Group Limited, a global operator of online vehicle marketplaces and related advertising technology, runs platforms such as carsales in Australia, Encar in South Korea, Trader Interactive in the U.S., chileautos in Chile and holds a majority st...
CAR Group Discloses Final Director Interest as Kee Wong Leaves Board
Sep 22, 2026
CAR Group Limited has announced that non-executive director Kee Wong ceased to be a director of the company on 22 September 2026, as disclosed in a final director’s interest notice lodged with the ASX. The notice records that Wong holds no C...
CAR Group Director Kee Wong Retires After Eight Years on Board
Sep 22, 2026
CAR Group Limited, a global operator of online vehicle marketplaces and related advertising technology, runs platforms across multiple vehicle segments in Australia, South Korea, the U.S., Chile and Brazil. Its businesses, including carsales and s...
CAR Group Updates Dividend Notice to Add DRP Pricing Details
Sep 22, 2026
CAR Group Limited, listed on the ASX under the code CAR with ordinary fully paid shares, is maintaining its established dividend practices in line with its semi-annual reporting cycle. The company continues to use the Australian market’s sta...
CAR Group Sets FY26 DRP Share Issue Price at $23.651
Sep 22, 2026
CAR Group Limited has set the share allocation price for its Dividend Reinvestment Plan at $23.651 per share for the FY26 final dividend, based on the volume weighted average price of its ASX-traded shares between 15 and 21 September 2026. The mov...
CBA Loses Substantial Holder Status in CAR Group
Sep 11, 2026
Commonwealth Bank of Australia and certain related entities have disclosed that they have ceased to be substantial holders in CAR Group Limited as of 10 September 2026. The change reflects a reduction in their relevant interest below the substanti...
Mitsubishi UFJ exits substantial-holder position in CAR Group
Sep 7, 2026
Mitsubishi UFJ Financial Group, Inc. has filed a notice stating it has ceased to be a substantial holder in CAR Group Limited, following a series of transactions in early September 2026 involving the sale and purchase of fully paid ordinary shares...
JPMorgan exits substantial shareholder position in CAR Group
Sep 6, 2026
JPMorgan Chase Co. and its affiliates have disclosed that they have ceased to be a substantial shareholder in CAR Group Ltd, after a series of changes in relevant interests involving securities lending, investment management and proprietary tradi...
First Sentier Group exits substantial holding in CAR Group
Sep 4, 2026
First Sentier Group, through a network of related entities, has filed a notice that it has ceased to be a substantial shareholder in CAR Group Limited. The change reflects a reduction in its relevant voting interests below the substantial holding ...
CAR Group Sets Key Dates for 2026 AGM and Director Nominations
Aug 27, 2026
CAR Group Limited has scheduled its 2026 Annual General Meeting of shareholders for 11:00 a.m. AEDT on Friday, 30 October 2026. The company has set Friday, 11 September 2026 as the closing date for receipt of nominations from individuals seeking e...
CAR Group Seeks ASX Quotation for Additional Ordinary Shares
Aug 27, 2026
CAR Group Limited, listed on the ASX under the ticker CAR, operates in the automotive-related services sector, providing digital platforms and solutions that connect car buyers, sellers, and related service providers. The company focuses on levera...
CAR Group Reports Lapse of 89,234 Performance Rights
Aug 26, 2026
CAR Group Limited has notified the market of the cessation of a tranche of its performance rights. The company reported that 89,234 CARAA performance rights have lapsed after the conditions attached to these rights were not met or became incapable...
Mitsubishi UFJ Exits Substantial Holder Position in CAR Group
Aug 24, 2026
Mitsubishi UFJ Financial Group, Inc. has filed a notice stating it has ceased to be a substantial holder in CAR Group Limited, following a series of trades in the company’s fully paid ordinary shares on 19 August 2026. The transactions, exec...
First Sentier Group Ceases to Be Substantial Holder in CAR Group
Aug 21, 2026
First Sentier Group Limited and a range of its related bodies corporate and associates, ultimately linked to Mitsubishi UFJ Financial Group, have lodged a notice stating they have ceased to be a substantial holder in CAR Group Limited. The change ...
CAR Group lodges updated ASX governance statement and Appendix 4G
Aug 9, 2026
CAR Group has lodged its updated corporate governance statement and accompanying Appendix 4G with the ASX for the financial year ended 30 June 2026, confirming the statement is current as of 9 August 2026 and has been approved by the board. The di...
CAR Group declares interim dividend of AUD 0.435 per share
Aug 9, 2026
CAR Group Limited has declared an ordinary interim dividend of AUD 0.435 per share for the six-month period ended 30 June 2026, payable on 12 October 2026 to shareholders on the register as of 14 September 2026. The shares will trade ex-dividend f...
CAR Group lifts profit and dividend as revenue rises in 2026
Aug 9, 2026
CAR Group Limited reported a 6% increase in revenue from continuing operations to A$1.25 billion for the year ended 30 June 2026, with statutory profit after tax rising 14% to A$332.4 million and net profit attributable to members also up 14% to A...
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.