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Auto Trader
(LSE:AUTO)
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Rating:79Outperform
Price Target:
539.00 p
â–²(2.08% Upside)
Action:Reiterated
Date:08/22/26
The score is primarily supported by strong financial performance (high margins and strong cash generation) and constructive technical momentum (price above major moving averages with positive MACD). Valuation appears reasonable rather than cheap, and earnings-call takeaways are mixed: solid FY27 profit/EPS guidance and aggressive capital returns are offset by near-term retailer/stock pressures, churn, and higher cost/operational execution risks.
Positive Factors
High-margin, cash-generative model
Very high margins and strong conversion of earnings into free cash flow indicate a scalable digital model with meaningful operating leverage. This financial profile supports continued investment in products, resilience through normal demand changes, and sustained shareholder returns over the coming quarters.
Negative Factors
Retailer churn and profitability pressure
Retailer redundancies, store restructures and higher cancellations directly pressure the recurring subscription base and weaken the near-term revenue run rate. If dealer profitability remains constrained, customer losses could limit pricing benefits and reduce the marketplace’s commercial momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin, cash-generative model
Very high margins and strong conversion of earnings into free cash flow indicate a scalable digital model with meaningful operating leverage. This financial profile supports continued investment in products, resilience through normal demand changes, and sustained shareholder returns over the coming quarters.
Read all positive factors
Auto Trader (AUTO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.03B
Dividend Yield2.19%
Average Volume (3M)4.10M
Price to Earnings (P/E)15.6
Beta (1Y)0.74
Revenue Growth3.86%
EPS Growth7.86%
CountryUK
Employees1,239
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.34
Shares Outstanding760,586,000
10 Day Avg. Volume3,756,591
30 Day Avg. Volume4,099,523
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
£503.67Price Target Upside-4.61% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.38
Revenue Forecast (FY)£650.16M
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 digital services to the automotive industry, with revenues largely derived from retailer subscriptions and advertising products that promote vehicle listings and dealer presence on its marketplace.
Key...
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 | 211.00M | 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
528.00
Price Trends
501.30
Positive
495.05
Positive
492.07
Positive
Market Momentum
12.95
Negative
64.08
Neutral
80.19
Negative
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 528 is above the 20-day moving average (MA) of 488.31, above the 50-day MA of 501.30, and above the 200-day MA of 492.07, indicating a bullish trend. The MACD of 12.95 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, 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 | £3.84B | 18.62 | 281.32% | 1.99% | 7.26% | 9.70% | |
79 Outperform | £4.03B | 15.59 | 60.53% | 2.19% | 3.86% | 7.86% | |
71 Outperform | €959.71M | 21.95 | 15.51% | 147.49% | 6.85% | 15.82% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
GB:AUTO
Auto Trader
542.40
-256.58
-32.11%
GB:RMV
Rightmove
559.60
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GB:BCG
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-30.98%
Auto Trader Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Share Base With October Buyback
Positive
Oct 5, 2026
Autotrader Group plc has continued its capital management strategy with a share buyback, purchasing 2,040,201 ordinary shares between 1 and 2 October 2026 through Deutsche Bank AG, London Branch for cancellation. The transactions were executed acr...
Regulatory Filings and Compliance
Autotrader Confirms Updated Total Voting Rights
Neutral
Oct 1, 2026
Autotrader Group plc has confirmed that, as of the close of business on 30 September 2026, it had 773,509,507 ordinary shares of £0.01 each in issue, with each share carrying one vote. Of these, 5,501,335 ordinary shares are held in treasury,...
Business Operations and StrategyFinancial Disclosures
Autotrader to unveil half-year results as it deepens digital and data-led auto services
Neutral
Oct 1, 2026
Autotrader Group plc, the UK’s largest automotive marketplace and a FTSE 100-listed digital platform, uses advanced data science and machine learning to power pricing, demand forecasting and personalised consumer experiences across the car b...
Stock BuybackRegulatory Filings and Compliance
Autotrader tightens share base with latest buyback tranche
Positive
Sep 28, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing and cancelling more than 3.6 million ordinary shares between 21 and 25 September 2026 through Merrill Lynch International at volume-weighted average prices ranging from a...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Capital Base With Latest Share Buyback
Positive
Sep 21, 2026
Autotrader Group plc has carried out a series of share repurchases between 14 and 18 September 2026, buying back more than 3 million ordinary shares through Merrill Lynch International for cancellation at prices around 488p to 505p per share. This...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Share Capital Through Ongoing Buyback Programme
Positive
Sep 14, 2026
Autotrader Group plc has continued its share buyback programme, purchasing approximately 2.86 million ordinary shares between 7 and 11 September 2026 through Merrill Lynch International for treasury and cancellation purposes. Following these trans...
Regulatory Filings and Compliance
Autotrader Updates Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2026
Autotrader Group plc has reported that as of 28 August 2026 it had 781,463,195 ordinary shares in issue at £0.01 each, with each share carrying one voting right. Of these, 3,867,184 shares are held in treasury, leaving 777,596,011 voting righ...
Regulatory Filings and Compliance
Autotrader Updates Market on Total Voting Rights and Share Capital
Neutral
Sep 1, 2026
Autotrader Group plc has reported that as of 28 August 2026 it had 781,463,195 ordinary shares in issue, each with a nominal value of £0.01 and carrying one voting right. Of these, 3,867,184 ordinary shares are held in treasury, resulting in ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Tightens Free Float With August Share Buyback
Positive
Aug 24, 2026
Autotrader Group plc has executed a share buyback, repurchasing 940,000 ordinary shares for cancellation between 17 and 21 August 2026 via Merrill Lynch International, at volume-weighted average prices around 529–538 pence. Following these t...
Regulatory Filings and Compliance
Autotrader CEO Restructures Shareholding in Joint Ownership Transfer
Neutral
Aug 24, 2026
Autotrader Group plc has disclosed changes in the shareholding arrangements of its chief executive officer, in line with U.K. Market Abuse Regulation. The company continues to operate under a framework that requires detailed reporting of transacti...
Stock BuybackRegulatory Filings and Compliance
Autotrader Tightens Capital Base with Latest Share Buyback
Positive
Aug 17, 2026
Autotrader Group plc has repurchased a total of 1,895,000 ordinary shares between 10 and 14 August 2026 through Merrill Lynch International for cancellation as part of its ongoing share buyback programme. This capital management action reduces the...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Shrinks Share Count with Latest Buyback Tranche
Positive
Aug 10, 2026
Autotrader Group plc has repurchased and cancelled approximately 1.9 million of its ordinary shares between 3 and 7 August 2026, with purchases executed through Merrill Lynch International at volume-weighted average prices ranging from about 512p ...
Regulatory Filings and Compliance
Auto Trader Confirms Total Voting Rights Following Treasury Share Holdings
Neutral
Aug 3, 2026
Auto Trader Group PLC has confirmed that, as of the close of business on 31 July 2026, it had 786,199,195 ordinary shares in issue with a nominal value of £0.01 per share, each carrying one voting right. Of these, 3,967,855 shares are held in...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Reduces Free-Float with Latest Share Buyback
Positive
Aug 3, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing and cancelling a series of ordinary shares between 27 and 31 July 2026 through Merrill Lynch International. The purchases, executed at volume-weighted average prices rang...
Stock BuybackRegulatory Filings and Compliance
Autotrader Updates Market on Latest Share Buybacks and Voting Rights
Positive
Jul 27, 2026
Autotrader Group plc has continued to actively manage its share capital, confirming that between 20 July and 24 July 2026 it repurchased a total of 405,000 ordinary shares through Merrill Lynch International for cancellation. The buybacks were exe...
Business Operations and StrategyRegulatory Filings and Compliance
Autotrader launches 2026 SAYE scheme and grants share options to CFO
Positive
Jul 21, 2026
Autotrader Group plc has launched its 2026 Save As You Earn (SAYE) scheme, offering eligible employees options over ordinary shares at an exercise price of 390.96 pence. The options, granted on 21 July 2026, will typically be exercisable from 1 Se...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader tightens equity base with latest share buyback
Positive
Jul 20, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing a total of 1,005,100 ordinary shares between 13 and 15 July 2026 via Merrill Lynch International for cancellation. The purchases, executed at volume-weighted average pric...
Regulatory Filings and Compliance
Autotrader Directors Exercise Incentive Options and Disclose Share Sales
Neutral
Jul 20, 2026
Autotrader has disclosed that directors Nathan Coe and James Warner exercised nil-cost share options previously granted under the Performance Share Plan and Deferred Annual Bonus Plan. The transactions involved ordinary shares of 1 pence each in t...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Autotrader Shareholders Back All AGM Resolutions, Approve Dividend and Board Re-elections
Positive
Jul 16, 2026
Autotrader Group plc reported that all resolutions at its 16 July 2026 Annual General Meeting were passed by shareholders via poll, with 80.61% of eligible shares voted. Investors approved the annual report, the directors’ remuneration repor...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Autotrader Advances Share Buyback, Updates Voting Rights
Positive
Jul 13, 2026
Autotrader Group plc has continued its share buyback programme, repurchasing just under 1.95 million ordinary shares between 6 and 10 July 2026 via Merrill Lynch International for cancellation, at volume-weighted average prices around 491–50...
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.