Auto Trader Group Plc (AUTO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Auto Trader Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 44.03%

Healthy long term growth as Net Sales has grown by an annual rate of 18.89%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 5,636.11
DEBT-EQUITY RATIO (HY) Highest at 47.36 %
INTEREST(Q) Highest at GBP 3.6 MM

With ROE of 72.19%, it has a attractive valuation with a 9.39 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.83%, its profits have risen by 4% ; the PEG ratio of the company is 1.3

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 19.08% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -39.83% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Auto Trader Group Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Auto Trader Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Auto Trader Group Plc

-39.83%

-1.48

27.47%

FTSE 100

19.08%

1.62

11.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.89%

EBIT Growth (5y)

19.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.94

Tax Ratio

25.02%

Dividend Payout Ratio

33.96%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

56.54%

ROE (avg)

44.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.39

EV to EBIT

10.23

EV to EBITDA

9.65

EV to Capital Employed

7.12

EV to Sales

6.37

PEG Ratio

1.28

Dividend Yield

171.06%

ROCE (Latest)

69.65%

ROE (Latest)

72.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 634.9 MM

ROCE(HY)

Highest at 60.19%

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.15%

RAW MATERIAL COST(Y)

Fallen by -0.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.1 times

DIVIDEND PER SHARE(HY)

Highest at GBP 8.1

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,636.11

DEBT-EQUITY RATIO (HY)

Highest at 47.36 %

INTEREST(Q)

Highest at GBP 3.6 MM

Here's what is working for Auto Trader Group Plc

Operating Cash Flow

Highest at GBP 634.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Debtors Turnover Ratio

Highest at 8.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at GBP 8.1

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 46.15%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 12.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Auto Trader Group Plc

Interest Coverage Ratio

Lowest at 5,636.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 3.6 MM

in the last five periods and Increased by 125% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 47.36 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio