Turners Automotive Group Ltd (TRA) AI Stock Analysis

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Turners Automotive Group Ltd

(NZX:TRA)

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Rating:47Neutral

Price Target:NZD 7.50▲(0.00% Upside)

Action:initiatedcoverage

Date:10/05/26

Weak financials driven by negative cash flow and high debt are the largest drags, followed by bearish technicals; solid yield offers partial offset.

Positive Factors

Diversified integrated business modelTurners combines used-vehicle retailing with finance and insurance, allowing it to earn multiple income streams from customer transactions. This integrated model can increase revenue per vehicle, diversify earnings across cycles, and strengthen its competitive position as the dealer market consolidates.

Negative Factors

Weak and volatile cash conversionReported profitability is not currently converting reliably into cash, with a large 2026 operating outflow and deeply negative free cash flow. Persistent volatility can constrain internally funded growth, increase reliance on financing, and reduce flexibility for dividends, acquisitions, or unexpected business needs.

Turners Automotive Group Ltd (TRA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: NZD 639.93M
Dividend Yield: 5.18%
Average Volume (3M): 34.08K
Price to Earnings (P/E): 17.9
Beta (1Y): 0.17
Revenue Growth: 9.03%
EPS Growth: -2.47%
Country: NZ
Employees: 724
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Dealerships

Turners Automotive Group Ltd Business Overview & Revenue Model

Company Description

Turners Automotive Group Limited engages in the automotive retail business in New Zealand and Australia. It operates through Auto Retail, Finance, Insurance, and Credit Management segments. The Auto Retail segment engages in remarketing of motor vehi...

How the Company Makes Money

TRA makes money through a mix of automotive sales and transaction-based services, plus financial services income tied to vehicle purchases. Key revenue streams include: (1) Used vehicle sales: TRA generates revenue from selling used vehicles (sourced...

Turners Automotive Group Ltd Financial Statement Overview

Summary

Revenue recovery is positive but high leverage near 1.9x and sharply negative cash flows offset gains and limit the score.

Income Statement

62Positive

Balance Sheet

41Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	448.96M	449.06M	255.48M	414.47M	389.03M	342.03M
Gross Profit	185.94M	186.03M	87.98M	158.46M	215.04M	188.86M
EBITDA	94.37M	94.91M	93.38M	88.72M	76.96M	64.75M
Net Income	38.17M	38.17M	38.59M	32.97M	32.57M	31.28M
Balance Sheet
Total Assets	1.07B	1.07B	917.77M	865.66M	851.94M	825.69M
Cash, Cash Equivalents and Short-Term Investments	20.24M	96.44M	102.50M	79.50M	78.81M	83.57M
Total Debt	606.39M	606.39M	468.18M	450.24M	439.15M	440.97M
Total Liabilities	752.72M	752.72M	619.28M	587.43M	579.69M	573.30M
Stockholders Equity	317.87M	317.87M	298.49M	278.22M	272.25M	252.40M
Cash Flow
Free Cash Flow	-116.68M	-116.68M	1.06M	11.03M	24.14M	-60.06M
Operating Cash Flow	-74.98M	-74.98M	33.96M	29.67M	68.32M	-43.94M
Investing Cash Flow	-38.52M	-38.52M	-30.79M	-9.94M	-43.33M	-12.06M
Financing Cash Flow	111.71M	111.71M	1.35M	-14.06M	-26.51M	57.51M

Turners Automotive Group Ltd Technical Analysis

Technical Analysis SentimentNeutral

Last Price7.50

Price Trends

50DMA7.32Positive

100DMA7.66Negative

200DMA7.94Negative

Market Momentum

MACD-0.00Negative

RSI61.76Neutral

STOCH85.20Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:TRA, the sentiment is Neutral. The current price of 7.50 is above the 20-day moving average (MA) of 7.22, above the 50-day MA of 7.32, and below the 200-day MA of 7.94, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NZ:TRA.

Turners Automotive Group Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

NZ:TRA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NZ:CMO	62Neutral	NZD 230.50M	12.37	―	6.68%	6.89%	4.68%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NZ:THL	58Neutral	NZD 648.98M	20.45	5.14%	4.04%	-9.00%	―
NZ:TRA	47Neutral	NZD 689.13M	17.86	12.23%	5.18%	9.03%	-2.47%

* Consumer Cyclical Sector Average

Performance Comparison

NZ:TRA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:TRA	Turners Automotive Group Ltd	7.50	0.16	2.18%
NZ:THL	Tourism Holdings Limited	2.93	0.55	23.16%
NZ:CMO	Colonial Motor Co Ltd	7.05	-0.61	-7.98%

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.

Date of analysis: Oct 05, 2026

Turners Automotive Group Ltd AI Stock Analysis