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

Auto Trader Group Plc

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Auction Technology Group Plc

World Chess Plc

OnTheMarket Plc

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 15.46%
Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Sales of 6.4%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at GBP 625.2 MM
ROCE(HY) Highest at 51.58%
OPERATING PROFIT(Q) Highest at GBP 209.1 MM

With ROE of 52.11%, it has a attractive valuation with a 7.04 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 -37.52%, its profits have risen by 5.1% ; the PEG ratio of the company is 2

Real-Time Research Report

Verdict Report

How much should you buy?

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

-38.36%

-1.69

25.94%

FTSE 100

15.36%

1.05

13.68%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.46%

EBIT Growth (5y)

14.79%

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)

0.89

Tax Ratio

25.02%

Dividend Payout Ratio

33.47%

Pledged Shares

Institutional Holding

0.01%

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

7.04

EV to EBIT

10.31

EV to EBITDA

9.77

EV to Capital Employed

7.06

EV to Sales

6.44

PEG Ratio

2.01

Dividend Yield

164.77%

ROCE (Latest)

68.46%

ROE (Latest)

52.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 625.2 MM

ROCE(HY)

Highest at 51.58%

OPERATING PROFIT(Q)

Highest at GBP 209.1 MM

PRE-TAX PROFIT(Q)

Highest at GBP 197.2 MM

RAW MATERIAL COST(Y)

Fallen by -4.06% (YoY

NET SALES(Q)

Highest at GBP 317.7 MM

NET PROFIT(Q)

Highest at GBP 150.9 MM

EPS(Q)

Highest at GBP 0.17

-3What is not working for the Company

INTEREST(HY)

At GBP 1.6 MM has Grown at 33.33%

DEBT-EQUITY RATIO (HY)

Highest at 6.9 %

Here's what is working for Auto Trader Group Plc

Operating Cash Flow

Highest at GBP 625.2 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)

Operating Profit

Highest at GBP 209.1 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (GBP MM)

Pre-Tax Profit

Highest at GBP 197.2 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Sales

Highest at GBP 317.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Net Profit

Highest at GBP 150.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost

Fallen by -4.06% (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 11.1 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

At GBP 1.6 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 6.9 %

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