# Auto Trader Group (AUTO.LSE) Canonical: https://gigainvestors.com/s/AUTO.LSE Analysis as of: 2026-10-16T07:37:21.742Z. Financial observations: FY2012–FY2026. Listing currency: GBX. Reporting currency: GBP. ## Verdict Not a wonderful business Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no. Share price: GBX 533.60 per share; close as of 2026-10-15. Estimated value: low GBX 436.54 per share, central GBX 496.63 per share, high GBX 576.62 per share. Buy at or below the central value GBX 496.63 per share. Valuation as of 2026-10-16T07:37:21.742Z; scenarios are not confidence intervals. Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points). ## Checklist ### understandable: pass - 1 revenue decline in the last 10 years (informational) - Financial history: 10 years - Years with declining revenue: 1 - Years with a net loss: 0 - Operating margin variation: 0.07× Chart: Operating margin; fiscal year observations. - FY2017: 0.65× - FY2018: 0.67× - FY2019: 0.68× - FY2020: 0.69× - FY2021: 0.61× - FY2022: 0.69× - FY2023: 0.55× - FY2024: 0.61× - FY2025: 0.63× - FY2026: 0.62× ### moat: fail - Recent gross margin fell 22.1pp below the typical margin (limit 4pp) - ROIC, median of available years: >100% - ROIC, second-lowest year: >100% - Typical minus recent gross margin: 22.1 pp - Typical gross margin (annual median): 97.5% - Recent gross margin (lower of latest and 3-year median): 75.4% - Years with nonpositive capital: 0 - Capital spending / revenue: 0.7% - ROIC including acquisitions, ten-year median: 48.1% Chart: ROIC excluding acquisitions; fiscal year observations. - FY2017: >100% - FY2018: >100% - FY2019: >100% - FY2020: >100% - FY2021: >100% - FY2022: >100% - FY2023: >100% - FY2024: >100% - FY2025: >100% - FY2026: >100% ### economics: fail - working capital as a share of revenue rose more than 10pp and ends positive - Owner earnings / net income, 5-yr: 1.02× - Cash conversion uses consolidated totals: No - Owner earnings, five-year total: GBP 1.3B - Net income, five-year total: GBP 1.3B - Return on incremental invested capital: 657.3% - Working capital / revenue, annual change: 2.2 pp - Working capital / revenue, change between three-year averages: 17.4 pp - Working capital / revenue, final three-year average: 13.2% Chart: Annual owner cash / profit; fiscal year observations. - FY2022: 1.01× - FY2023: 1.04× - FY2024: 1.05× - FY2025: 1.06× - FY2026: 0.96× ### management: pass - Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years) - potential debt-funded buybacks (informational) - buybacks leaned toward cheaper years (informational) - ROIC first 3 years vs last 3 years: 469.2% vs 184.6% - Per-share earnings: 0.16 to 0.32 (three-year endpoint medians) - Management verdict uses per-share economic progress: Yes - Ordinary dilution, 10-year annual growth: -1.5% - Ordinary dilution, 5-year annual growth: -2.2% - Market cap gain: GBP 213M - Cumulative retained earnings: GBP 260M - Diluted shares, 10-year annual growth: -1.5% - Diluted shares, 5-year annual growth: -2.2% - $1 test, starting fiscal year: FY2017 - $1 test, ending fiscal year: FY2026 - Per-share value growth: 9.1% - Per-share value change: GBP 0.16 - Per-share value, starting three-year median: GBP 0.16 - Per-share value, ending three-year median: GBP 0.32 - Buybacks concentrated in cheaper years (correlation): 0.65 - Average buyback yield: 3.0% - Buyback history: 10 years - Debt-funded buybacks: Yes - Acquisition spending: GBP 623M - Cumulative net income, 10 years: GBP 2.2B - ROIC, first three-year median: >100% - ROIC, last three-year median: >100% Chart: Earnings per share; fiscal year observations. - FY2017: GBP 0.16 - FY2018: GBP 0.18 - FY2019: GBP 0.21 - FY2020: GBP 0.21 - FY2021: GBP 0.13 - FY2022: GBP 0.26 - FY2023: GBP 0.25 - FY2024: GBP 0.29 - FY2025: GBP 0.32 - FY2026: GBP 0.35 ### accounting: pass - Sloan accruals: -4.7% - Receivables to sales index (DSRI): 1.09× - Restructuring years, last five: 0 - Stock compensation / operating cash flow: 2.8% - Earnings backed by cash: Yes - Operating cash / earnings: 1.11× - Accounting red flags: 0 - Goodwill and intangibles / equity: 1.12× Chart: Sloan accruals; fiscal year observations. - FY2017: -6.0% - FY2018: -4.3% - FY2019: -4.1% - FY2020: 1.8% - FY2021: 1.1% - FY2022: -5.0% - FY2023: -5.0% - FY2024: -4.7% - FY2025: -3.4% - FY2026: -4.7% ## Holders ## Price story Down 39% since Sep 2024 · sales +3.9% Story as of 2026-10-16T10:00:09.006Z; price observation 2026-10-15. Price needs cash profits to grow 1.8% a year for ten years ### Sales · FY2025–2026 sales +3.9%; source https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html; observed 2026-06-25. - FY2017: GBP 311M - FY2018: GBP 330M - FY2019: GBP 355M - FY2020: GBP 369M - FY2021: GBP 263M - FY2022: GBP 433M - FY2023: GBP 500M - FY2024: GBP 571M - FY2025: GBP 601M - FY2026: GBP 624M ### Gross margin · FY2026 gross margin 75.4%; source https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html; observed 2026-06-25. - FY2017: 97.4% - FY2018: 97.3% - FY2019: 97.5% - FY2020: 98.2% - FY2021: 97.6% - FY2022: 98.3% - FY2023: 69.4% - FY2024: 78.9% - FY2026: 75.4% ## Owner memo Memo as of 2026-10-16T08:06:05.509Z. ### How it makes money Operates in internet content & information; annual sales are GBP 624.3 million. - Source: https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html (filed 2026-06-25); FY2026: revenue 624300000; grossProfit 470600000; margin = grossProfit / revenue. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AUTO.LSE: Autotrader Group plc operates an automotive platform in the United Kingdom. The company operates through Autotrader and Autorama segments. It provides vehicle advertisement on its websites for private sellers, as well as insurance and loan finance products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company also sells new vehicles and accessories; and facilitates the lease of new vehicles. It offers its products to retailers, home traders, and logistics customers. The company was formerly known as Auto Trader Group plc and changed its name to Autotrader Group plc in January 2026. The company was founded in 1977 and is headquartered in Manchester, the United Kingdom. ### Why customers stay Margins ranged from 75.4% to 100% during 2024–26; it earns over 100% on its capital. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 78.9%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 100%. - Source: https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html (filed 2026-06-25); FY2026: grossProfit / revenue = 75.4%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,10.737684653156824],[2018,4.692109231815866],[2019,2.9938030291312514],[2020,2.162703889046976],[2021,1.2044920558497834],[2022,2.716135375567159],[2023,1.436922961335609],[2024,1.8456950348531123],[2025,2.1802108883929487],[2026,1.704868349555828]]; median 2.171457388719962. ROIC follows the displayed moat series; financial companies use return on tangible equity. ### Can it raise prices Average commission and ancillary revenue per unit delivered was £1,167 (2025: £1,627). - Source: https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html (filed 2026-06-25); Deliveries from Autotrader, which were predominantly cars, increased over three times to 3,804 (2025: 976). Average commission and ancillary revenue per unit delivered was £1,167 (2025: £1,627). 2026 £m 2025 £m Change % Cost of goods sold 29.9 26.2 14% People costs 6.8 7.4 (8%) Marketing 1.4 2.7 (48%) Other costs 2.2 2.8 (21%) Depreciation & amortisation 0.7 1.5 (53%) Autorama costs 41.0 40.6 1% The Autorama business delivered c.1,350 (2025: c.900) vehicles whi tion & amortisation 23.4 20.7 13% Digital services tax 10.6 10.2 4% Total costs 235.7 227.9 3% Profit from joint ventures 4.1 3.6 14% Operating profit 392.7 376.8 4% Operating profit margin excl. ### Where the cash goes Spends 0.4% of cash earnings on expansion; paid dividends in 10 of 10 years. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 0; upkeep 2500000; owner earnings 160200000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 0; upkeep 2300000; owner earnings 178000000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 0; upkeep 1700000; owner earnings 201680000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2020: growth capex 0; upkeep 1500000; owner earnings 208280000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 0; upkeep 1400000; owner earnings 131200000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 0; upkeep 2800000; owner earnings 247200000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2023: growth capex 0; upkeep 3400000; owner earnings 243180000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: growth capex 0; upkeep 3600000; owner earnings 270640000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: growth capex 0; upkeep 4000000; owner earnings 298800000. Growth capex / owner earnings = 0. - Source: https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html (filed 2026-06-25); FY2026: growth capex 1072223.1835437007; upkeep 26227776.8164563; owner earnings 282552223.1835437. Growth capex / owner earnings = 0.003794778789785678. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,26600000],[2018,52200000],[2019,57600000],[2020,64700000],[2021,64700000],[2022,73600000],[2023,77700000],[2024,80400000],[2025,88400000],[2026,94100000]]. Zero only counted when supported by a complete cash-flow statement. - Source: https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html (filed 2026-06-25); FY2026: cash repurchases 371000000 GBP. ### Are managers owners Insiders own 0.6% of the company. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AUTO.LSE SharesStats.PercentInsiders = 0.5579999999999999 percentage points; cache date 2026-10-16. ### What the price says The price assumes cash profits grow 1.8% yearly over ten years; actual growth was 9.9%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Ten-year compound average after fade. Initial solved rate 0.012809607798153544. Price 533.6; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.12974193841156276 → FY2026 0.3331351278631577. Closing-price date 2026-10-15. ## Monthly share-price history (GBX per share) - 2016-10: GBX 374.70 per share - 2016-11: GBX 399.70 per share - 2016-12: GBX 409.00 per share - 2017-01: GBX 400.00 per share - 2017-02: GBX 395.20 per share - 2017-03: GBX 392.30 per share - 2017-04: GBX 401.10 per share - 2017-05: GBX 416.10 per share - 2017-06: GBX 380.00 per share - 2017-07: GBX 382.70 per share - 2017-08: GBX 353.40 per share - 2017-09: GBX 392.50 per share - 2017-10: GBX 342.50 per share - 2017-11: GBX 336.30 per share - 2017-12: GBX 352.80 per share - 2018-01: GBX 360.10 per share - 2018-02: GBX 365.00 per share - 2018-03: GBX 350.60 per share - 2018-04: GBX 353.00 per share - 2018-05: GBX 352.60 per share - 2018-06: GBX 425.90 per share - 2018-07: GBX 425.30 per share - 2018-08: GBX 449.10 per share - 2018-09: GBX 446.60 per share - 2018-10: GBX 409.60 per share - 2018-11: GBX 438.40 per share - 2018-12: GBX 454.80 per share - 2019-01: GBX 457.00 per share - 2019-02: GBX 475.70 per share - 2019-03: GBX 521.60 per share - 2019-04: GBX 565.40 per share - 2019-05: GBX 599.40 per share - 2019-06: GBX 547.80 per share - 2019-07: GBX 541.80 per share - 2019-08: GBX 531.60 per share - 2019-09: GBX 510.00 per share - 2019-10: GBX 562.20 per share - 2019-11: GBX 562.00 per share - 2019-12: GBX 594.60 per share - 2020-01: GBX 562.00 per share - 2020-02: GBX 519.60 per share - 2020-03: GBX 439.10 per share - 2020-04: GBX 458.70 per share - 2020-05: GBX 558.20 per share - 2020-06: GBX 526.40 per share - 2020-07: GBX 536.60 per share - 2020-08: GBX 563.20 per share - 2020-09: GBX 563.00 per share - 2020-10: GBX 579.00 per share - 2020-11: GBX 560.60 per share - 2020-12: GBX 596.00 per share - 2021-01: GBX 564.00 per share - 2021-02: GBX 550.20 per share - 2021-03: GBX 554.40 per share - 2021-04: GBX 570.20 per share - 2021-05: GBX 561.60 per share - 2021-06: GBX 633.40 per share - 2021-07: GBX 652.00 per share - 2021-08: GBX 629.00 per share - 2021-09: GBX 588.80 per share - 2021-10: GBX 605.60 per share - 2021-11: GBX 732.60 per share - 2021-12: GBX 740.00 per share - 2022-01: GBX 667.60 per share - 2022-02: GBX 663.00 per share - 2022-03: GBX 632.80 per share - 2022-04: GBX 634.80 per share - 2022-05: GBX 589.60 per share - 2022-06: GBX 555.00 per share - 2022-07: GBX 629.60 per share - 2022-08: GBX 651.80 per share - 2022-09: GBX 515.00 per share - 2022-10: GBX 521.60 per share - 2022-11: GBX 565.80 per share - 2022-12: GBX 515.60 per share - 2023-01: GBX 627.00 per share - 2023-02: GBX 595.40 per share - 2023-03: GBX 616.20 per share - 2023-04: GBX 635.60 per share - 2023-05: GBX 630.00 per share - 2023-06: GBX 610.40 per share - 2023-07: GBX 646.00 per share - 2023-08: GBX 606.40 per share - 2023-09: GBX 617.60 per share - 2023-10: GBX 621.20 per share - 2023-11: GBX 724.80 per share - 2023-12: GBX 721.40 per share - 2024-01: GBX 728.80 per share - 2024-02: GBX 740.40 per share - 2024-03: GBX 700.20 per share - 2024-04: GBX 698.40 per share - 2024-05: GBX 816.20 per share - 2024-06: GBX 801.20 per share - 2024-07: GBX 815.60 per share - 2024-08: GBX 851.00 per share - 2024-09: GBX 867.80 per share - 2024-10: GBX 839.20 per share - 2024-11: GBX 839.00 per share - 2024-12: GBX 793.00 per share - 2025-01: GBX 790.40 per share - 2025-02: GBX 775.60 per share - 2025-03: GBX 744.20 per share - 2025-04: GBX 839.20 per share - 2025-05: GBX 794.00 per share - 2025-06: GBX 824.40 per share - 2025-07: GBX 837.40 per share - 2025-08: GBX 803.20 per share - 2025-09: GBX 788.20 per share - 2025-10: GBX 780.40 per share - 2025-11: GBX 639.00 per share - 2025-12: GBX 586.40 per share - 2026-01: GBX 538.00 per share - 2026-02: GBX 492.90 per share - 2026-03: GBX 469.50 per share - 2026-04: GBX 496.00 per share - 2026-05: GBX 441.50 per share - 2026-06: GBX 499.10 per share - 2026-07: GBX 523.80 per share - 2026-08: GBX 528.00 per share - 2026-09: GBX 452.80 per share - 2026-10: GBX 533.60 per share ## Annual estimated value (GBX per share) - FY2017: low GBX 32.61 per share, central GBX 37.08 per share, high GBX 43.03 per share - FY2018: low GBX 174.45 per share, central GBX 198.51 per share, high GBX 230.53 per share - FY2019: low GBX 215.43 per share, central GBX 245.14 per share, high GBX 284.68 per share - FY2020: low GBX 228.25 per share, central GBX 259.29 per share, high GBX 300.61 per share - FY2021: low GBX 167.30 per share, central GBX 189.78 per share, high GBX 219.71 per share - FY2022: low GBX 381.19 per share, central GBX 554.00 per share, high GBX 650.38 per share - FY2023: low GBX 336.74 per share, central GBX 383.07 per share, high GBX 444.74 per share - FY2024: low GBX 347.16 per share, central GBX 394.92 per share, high GBX 458.49 per share - FY2025: low GBX 372.83 per share, central GBX 424.18 per share, high GBX 492.54 per share - FY2026: low GBX 391.81 per share, central GBX 445.74 per share, high GBX 517.53 per share Historical values use today's bond yield for every fiscal year Historical values use today's FX rate into trading currency for every fiscal year Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates ## Sources [Original ESEF filing](https://filings.xbrl.org/213800QLK9BZILB1DI86/2026-03-31/ESEF/GB/0/213800QLK9BZILB1DI86-2026-03-31/reports/213800QLK9BZILB1DI86-2026-03-31-T01.html); period 2026-03-31, filed 2026-06-25. Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights. ## Reported holder observations