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REA Group Ltd
(Sydney:REA)
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Rating:80Outperform
Price Target:
AU$178.00
▼(-0.38% Downside)
Action:Upgraded
Date:08/10/26
The score is driven primarily by strong financial quality—robust margins, excellent cash generation, and a very low-leverage balance sheet. Technicals are supportive with an established uptrend, though momentum indicators are near stretched levels. The main offset is valuation (high P/E with a modest yield), and guidance points to softer listings and continued uncertainty despite solid product momentum and capital returns.
Positive Factors
Cash Generation
Strong conversion of accounting earnings into operating and free cash flow gives REA meaningful financial flexibility. This supports continued investment in products and technology while also funding dividends, buybacks, and potential strategic initiatives without relying heavily on additional debt.
Negative Factors
Listing Volume Weakness
Flat or declining listing volumes constrain the underlying activity base for REA’s marketplace. Although pricing and add-on adoption may offset some pressure, weaker listings can reduce transaction-related demand from agents and make revenue growth more dependent on successful yield increases.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Strong conversion of accounting earnings into operating and free cash flow gives REA meaningful financial flexibility. This supports continued investment in products and technology while also funding dividends, buybacks, and potential strategic initiatives without relying heavily on additional debt.
Read all positive factors
REA Group Ltd (REA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$21.00B
Dividend Yield1.85%
Average Volume (3M)224.54K
Price to Earnings (P/E)38.4
Beta (1Y)1.02
Revenue Growth4.24%
EPS Growth-18.52%
CountryAU
Employees1,921
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)4.19
Shares Outstanding130,859,820
10 Day Avg. Volume246,921
30 Day Avg. Volume224,539
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)9.67
Price to Sales (P/S)9.28
P/FCF Ratio23.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$186.00Price Target Upside4.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)5.63
Revenue Forecast (FY)AU$1.86B
REA Group Ltd Business Overview & Revenue Model
Company Description
REA Group Limited functions as a global digital media enterprise primarily focused on online property advertising and associated services. The company delivers extensive property solutions via its diverse array of websites and mobile applications,...
How the Company Makes Money
REA primarily makes money by monetizing its online property marketplaces through fees paid by real estate agents, developers, and other property advertisers to market properties and their brands to consumers. Key revenue streams include: (1) Listi...
REA Group Ltd Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted a strong financial year with double‑digit growth across key metrics (EBITDA +12%, NPAT +15%, FCF +17%), record audience and significant product and AI progress. Management demonstrated disciplined cost control, margin expansion and robust capital returns (higher dividends and a $200M buyback). Headwinds remain—flat-to‑slightly‑lower listings guided for FY'27, macro uncertainty from recent rate rises and tax changes, a material $111M India impairment and ongoing geo mix volatility. Early‑stage AI monetization and some elevated operating cost categories introduce near‑term execution and timing risks. Overall, the positive financial performance, strong cash generation and clear product momentum outweigh the listed challenges, but the company acknowledges continuing macro and operational uncertainties into FY'27.Positive Updates
Strong Group Financial Performance
Revenue up 7% year‑on‑year to $1.79 billion; EBITDA (excluding associates) up 12% to $1.09 billion; NPAT up 15% to $650 million; EPS up 15% to $4.93; free cash flow up 17% to $628 million.
Negative Updates
Listings Volume Weakness and Guidance
National buyer listings were flat in FY'26 and are guided to be flat to down low single digits for FY'27; July listings were 2% lower y/y, combined Melbourne and Sydney listings declined 16% in July, and geo mix volatility remains a key swing factor for reported yields.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Group Financial Performance
Revenue up 7% year‑on‑year to $1.79 billion; EBITDA (excluding associates) up 12% to $1.09 billion; NPAT up 15% to $650 million; EPS up 15% to $4.93; free cash flow up 17% to $628 million.
Read all positive updates
Company Guidance
Guidance for FY'27: REA expects new national buyer listings to be flat to down low-single-digits (July was -2% year‑on‑year and in line with the 8‑year average, with combined Sydney+Melbourne down 16% in July while Brisbane/Perth/Adelaide were up 13%), with controllable residential buy yield growth (excluding geo mix) targeted in the low double‑digits driven by an 8% Premiere+ price rise and stronger add‑ons (with Luxe flagged as a larger contributor than AMAX); the group will target operational margin expansion while Australian operating costs (ex iGUIDE/Simplicity M&A) are expected to rise mid‑single‑digits and group operating costs including M&A mid‑ to high‑single‑digits on a continuing‑business basis off a FY'26 base of $609m; CapEx to revenue is anticipated to remain within the 7–9% target range, contributions from associates should improve modestly, geo mix is the main swing factor, India is now treated as discontinued, and the balance sheet/optionality remain strong.REA Group Ltd Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.98B | 1.93B | 1.68B | 1.39B | 1.43B |
| Gross Profit | 997.90M | 1.86B | 1.08B | 636.50M | 598.00M |
| EBITDA | 1.08B | 1.06B | 683.00M | 622.20M | 649.30M |
| Net Income | 551.60M | 677.90M | 302.80M | 356.10M | 384.80M |
Balance Sheet | |||||
| Total Assets | 2.96B | 2.83B | 2.65B | 2.63B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 365.60M | 428.80M | 205.10M | 259.80M | 248.20M |
| Total Debt | 75.60M | 70.70M | 281.20M | 403.20M | 487.00M |
| Total Liabilities | 1.05B | 881.30M | 1.08B | 1.11B | 1.21B |
| Stockholders Equity | 1.90B | 1.91B | 1.54B | 1.47B | 1.30B |
Cash Flow | |||||
| Free Cash Flow | 765.10M | 537.40M | 464.40M | 355.10M | 392.60M |
| Operating Cash Flow | 771.40M | 675.40M | 589.40M | 472.70M | 487.60M |
| Investing Cash Flow | -251.90M | 71.10M | -205.20M | -133.60M | -194.70M |
| Financing Cash Flow | -576.30M | -521.60M | -439.40M | -329.30M | -219.40M |
REA Group Ltd Technical Analysis
Neutral
178.68
Price Trends
160.94
Negative
156.80
Positive
160.93
Negative
Market Momentum
1.57
Negative
51.89
Neutral
63.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REA, the sentiment is Neutral. The current price of 178.68 is above the 20-day moving average (MA) of 158.08, above the 50-day MA of 160.94, and above the 200-day MA of 160.93, indicating a neutral trend. The MACD of 1.57 indicates Negative momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 63.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:REA.
REA Group Ltd Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$21.00B | 38.36 | 27.90% | 1.85% | 4.24% | -18.52% | |
74 Outperform | AU$9.19B | 29.46 | 11.28% | 3.55% | 5.88% | 13.64% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | AU$26.72M | -32.83 | -2.00% | 51.62% | -6.77% | 95.53% | |
54 Neutral | AU$43.06M | -3.31 | -89.78% | ― | ― | -150.42% | |
54 Neutral | AU$95.47M | 390.00 | 14.39% | ― | 9.89% | ― | |
43 Neutral | AU$57.16M | -7.00 | -110.48% | ― | 7.17% | -27.08% |
* Communication Services Sector Average
AU:REA
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REA Group Ltd Corporate Events
REA Group to Showcase Growth Strategy at October Investor Day
Oct 12, 2026
REA Group Ltd will host an Investor Day in Sydney on 23 October 2026, where CEO Cameron McIntyre and the leadership team will outline strategic priorities and update investors on key growth drivers. The in-person event is by invitation only due to...
REA Group director Kelly Bayer Rosmarin steps down and files final interests
Oct 8, 2026
REA Group Ltd has announced that non-executive director Kelly Bayer Rosmarin has ceased to be a director of the company as of 8 October 2026. The notice to the ASX details her final relevant interests in REA Group securities held indirectly throug...
REA Group wins strong investor backing at 2026 AGM
Oct 8, 2026
REA Group shareholders approved all resolutions at the company’s 2026 Annual General Meeting, with each item decided by poll and securing strong majorities in favour. The voting results confirmed support for the group’s governance and ...
REA Group Opens 2026 AGM With Market Update and Online Governance Focus
Oct 7, 2026
REA Group Ltd has convened its 2026 Annual General Meeting, with Chairman Hamish McLennan opening the session and outlining procedures for shareholder participation. The company signalled that formal addresses and a market update from the chairman...
REA Group reports lapse of performance rights, trimming potential equity dilution
Oct 6, 2026
REA Group Ltd has notified the market of the cessation of several tranches of performance rights, following the lapse of conditional rights that could not be satisfied. The company reported that a total of 24,147 performance rights, issued under i...
REA Group Issues 56,259 New Shares Following Conversion of Unquoted Securities
Oct 6, 2026
REA Group Ltd has notified the market of the issue of 56,259 new ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The issuance, completed on 7 August 2026 and disclosed via an Appendix 3G filing, m...
REA Group Issues New Unquoted Performance Rights Under Employee Scheme
Oct 6, 2026
REA Group Ltd has notified the market of the issue of new unquoted performance rights under its employee incentive scheme. The company will issue a total of 104,203 performance rights across two tranches in mid and late September 2026, which will ...
REA Group to buy 35% stake in Ireland’s Distilled, owner of Daft.ie
Sep 28, 2026
REA Group has agreed to acquire a 35% non-controlling stake in Distilled, the leading multi-vertical digital marketplace operator in Ireland and Northern Ireland and owner of top portals including Daft.ie, PropertyPal and DoneDeal.ie. The €2...
REA Group strengthens board with appointment of Sally Bruce as non-executive director
Sep 22, 2026
REA Group Ltd has appointed Ms Sally Bruce as an independent non-executive director, effective 2 November 2026, and she will also join the Audit, Risk Compliance Committee. Bruce brings more than 35 years of financial services and technology lead...
REA Group Issues New Performance Rights Under Employee Incentive Plan
Sep 17, 2026
REA Group Ltd has notified the market of the issuance of 6,461 performance rights under its employee incentive scheme, which are unquoted securities not intended to be listed on the ASX. The rights were issued on 16 September 2026, reflecting the ...
REA Group resolves ACCC concerns with court-enforceable undertaking
Sep 13, 2026
REA Group has entered into a court-enforceable undertaking with the Australian Competition and Consumer Commission, resolving concerns about its dealings with real estate agency customers without any legal proceedings or findings of wrongdoing. Un...
REA Group sets virtual 2026 AGM and flags board change
Sep 2, 2026
REA Group Ltd has called its 2026 Annual General Meeting for 8 October 2026, to be held virtually via an online portal, with accompanying meeting materials including the notice of meeting, voting form and online participation guide made available ...
REA Group updates CEO Cameron McIntyre’s equity holdings under incentive plans
Aug 24, 2026
REA Group Ltd has disclosed a change in the securities held by chief executive Cameron McIntyre, reflecting updates to his equity-based remuneration. The notice details new allocations of restricted ordinary shares issued under the company’s...
REA Group CEO adjusts equity holdings as performance rights lapse and vest
Aug 11, 2026
REA Group has disclosed changes to Chief Executive Cameron McIntyre’s holdings, detailing movements in his performance rights and ordinary shares. The update shows some FY26 sign-on performance rights lapsed after performance conditions were...
REA Group Issues New Shares Following Option Conversions
Aug 11, 2026
REA Group Ltd operates as a digital real estate advertising and listings business, best known for its online property platforms that connect buyers, sellers, renters and agents. The company focuses on the Australian market through its ASX-listed s...
REA Group reports lapse of performance rights
Aug 11, 2026
REA Group Ltd has notified the market of the cessation of 314 performance rights, recorded under ASX security code REAAA. These rights lapsed after the conditional entitlement to securities was not met, or became incapable of being satisfied, with...
News Corporation files 2026 Form 10-K, affirms status as major SEC registrant
Aug 9, 2026
News Corporation has filed its annual Form 10-K for the fiscal year ended June 30, 2026, confirming it remains a large accelerated filer and a well-known seasoned issuer under U.S. securities regulations. The filing details its compliance with rep...
REA Group Sets Out 2026 Corporate Governance Framework
Aug 5, 2026
REA Group Ltd has detailed its corporate governance framework for 2026, outlining how it aligns with the 4th edition of the ASX Corporate Governance Council’s Principles and Recommendations to support lawful, ethical and responsible conduct....
REA Group publishes FY26 investor presentation
Aug 5, 2026
REA Group Ltd has released its full-year FY26 investor and analyst presentation for the year ended 30 June 2026, providing the market with detailed results and operational insights. The presentation is intended for shareholders, analysts and other...
REA Group posts strong FY26 earnings and doubles down on AI and diversification
Aug 5, 2026
REA Group reported strong FY26 core operations, with revenue rising 7% to $1.79 billion and EBITDA up 12%, driven largely by 11% growth in Australian revenue and disciplined cost control. Net profit from core operations increased 15%, free cash fl...
REA Group announces AUD 1.73 interim dividend for half‑year to June 2026
Aug 5, 2026
REA Group Ltd has declared a six‑month dividend of AUD 1.73 per ordinary fully paid share for the period ended 30 June 2026, according to an announcement lodged on 6 August 2026. The dividend will trade ex‑dividend on 27 August, with a...
REA Group lifts core earnings and dividend as FY26 results released
Aug 5, 2026
REA Group has released its Appendix 4E and 2026 Annual Report for the year ended 30 June 2026, detailing audited financial statements, directors’ and sustainability reports for investors and other stakeholders. The materials, authorised by t...
REA Group sets date and timetable for 2026 annual general meeting
Jul 28, 2026
REA Group Ltd has scheduled its 2026 annual general meeting of shareholders for 8 October 2026 at 9:00am AEDT, confirming key governance dates for investors. The company has set 6 August 2026 as the deadline for director nomination submissions, wi...
REA Group sets August date for full-year 2026 results briefing
Jul 22, 2026
REA Group Ltd has scheduled the release of its full-year results for the period ended 30 June 2026, with the announcement and investor briefing to be held on 6 August 2026. The webcast, hosted by CEO Cameron McIntyre and CFO Andrew Cramer, will be...
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.