# CAR Group (CAR.AU)

Canonical: https://gigainvestors.com/s/CAR.AU

Analysis as of: 2026-10-16T07:37:01.758Z. Financial observations: FY2006–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## 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: AUD 22.98 per share; close as of 2026-10-15.

Estimated value: low AUD 11.31 per share, central AUD 12.76 per share, high AUD 14.69 per share. Buy at or below the central value AUD 12.76 per share. Valuation as of 2026-10-16T07:37:01.758Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 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: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.45×

- FY2018: 0.48×

- FY2019: 0.43×

- FY2020: 0.41×

- FY2021: 0.46×

- FY2022: 0.44×

- FY2023: 0.38×

- FY2024: 0.38×

- FY2025: 0.38×

- FY2026: 0.38×

### moat: fail

- Recent gross margin fell 6.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 46.4%

- ROIC, second-lowest year: 27.8%

- Typical minus recent gross margin: 6.4 pp

- Typical gross margin (annual median): 79.5%

- Recent gross margin (lower of latest and 3-year median): 73.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.2%

- ROIC including acquisitions, ten-year median: 15.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 45.7%

- FY2018: 79.7%

- FY2019: 59.2%

- FY2020: 47.1%

- FY2021: 48.4%

- FY2022: 13.9%

- FY2023: 27.8%

- FY2024: 36.5%

- FY2025: 41.9%

- FY2026: 47.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 1.9B

- Net income, five-year total: AUD 1.6B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.7 pp

- Working capital / revenue, final three-year average: 11.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.92×

- FY2023: 1.01×

- FY2024: 1.18×

- FY2025: 1.16×

- FY2026: 1.50×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 59.2% vs 41.9%

- Per-share earnings: 0.45 to 0.73 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.6%

- Ordinary dilution, 5-year annual growth: 5.2%

- Market cap gain: AUD 7.1B

- Cumulative retained earnings: AUD 252M

- Diluted shares, 10-year annual growth: 4.6%

- Diluted shares, 5-year annual growth: 5.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.1%

- Per-share value change: AUD 0.28

- Per-share value, starting three-year median: AUD 0.45

- Per-share value, ending three-year median: AUD 0.73

- Average buyback yield: 0.2%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 7.4B

- Cumulative net income, 10 years: AUD 2.3B

- ROIC, first three-year median: 59.2%

- ROIC, last three-year median: 41.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.45

- FY2018: AUD 0.75

- FY2019: AUD 0.51

- FY2020: AUD 0.44

- FY2021: AUD 0.45

- FY2022: AUD 0.46

- FY2023: AUD 1.71

- FY2024: AUD 0.66

- FY2025: AUD 0.73

- FY2026: AUD 0.83

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.63×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.52×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.8%

- FY2018: 7.2%

- FY2019: -2.6%

- FY2020: -6.2%

- FY2021: -6.0%

- FY2022: -2.3%

- FY2023: 7.4%

- FY2024: -3.6%

- FY2025: -5.0%

- FY2026: -4.0%

## Holders

## Price story

Down 45% since Nov 2024 · sales +5.9%

Story as of 2026-10-16T10:00:08.501Z; price observation 2026-10-15.

Price needs cash profits to grow 8.7% a year for ten years

### Sales · FY2025–2026

sales +5.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 372M 

- FY2018: AUD 377M 

- FY2019: AUD 417M 

- FY2020: AUD 394M 

- FY2021: AUD 427M 

- FY2022: AUD 509M 

- FY2023: AUD 781M 

- FY2024: AUD 1.1B 

- FY2025: AUD 1.2B 

- FY2026: AUD 1.3B 

### Gross margin · FY2026

gross margin 73.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 82.4% 

- FY2018: 85.2% 

- FY2019: 84.4% 

- FY2020: 74.9% 

- FY2021: 76.7% 

- FY2022: 74.2% 

- FY2023: 70.5% 

- FY2024: 84.2% 

- FY2025: 95.2% 

- FY2026: 73.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet content & information; annual sales are AUD 1.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2026: revenue 1253427000; grossProfit 916302000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CAR.AU: CAR Group Limited engages in the online vehicle marketplace business in Australia, New Zealand, Brazil, South Korea, Malaysia, Thailand, Chile, China, Canada, North America, North America., and internationally. It offers advertising services that allows private and dealer customers to advertise automotive and non-automotive goods and services for sale across the carsales network; products, including subscriptions, lead fees, listing fees, and priority placement services; and display advertising services, such as placing advertisements for corporate customers comprising automotive manufacturers and finance companies. The company also provides software as a service, research and reporting, valuation, appraisals, and website development and hosting services, as well as photography services. In addition, it offers vehicle inspection services; operates digital automotive and non-automotive marketplaces; and offers automotive data and advertising services. In addition, it is involved in the inspection services; early-stage investments and AI development; online vehicle classified activities. The company was formerly known as carsales.com Ltd and changed its name to CAR Group Limited in November 2023. CAR Group Limited was incorporated in 1996 and is headquartered in Richmond, Australia.

### Why customers stay

Margins ranged from 73.1% to 95.2% during 2024–26; it earns 46.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2024: grossProfit / revenue = 84.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2025: grossProfit / revenue = 95.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2026: grossProfit / revenue = 73.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); 10-year return on capital observations [[2017,0.45728623100363835],[2018,0.7968032164404792],[2019,0.5921868434993335],[2020,0.47138540330852347],[2021,0.4837177184813838],[2022,0.13886790601964058],[2023,0.27751286899435035],[2024,0.36489413705335627],[2025,0.4189474094891498],[2026,0.4726683116786859]]; median 0.4643358171560809. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2017: growth capex 0; upkeep 2395000; owner earnings 117050000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2018: growth capex 0; upkeep 3548000; owner earnings 196923000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2019: growth capex 0; upkeep 3813000; owner earnings 159524000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2020: growth capex 0; upkeep 33588000; owner earnings 105236800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2021: growth capex 0; upkeep 33307000; owner earnings 124944600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2022: growth capex 1582000; upkeep 46691000; owner earnings 147929800. Growth capex / owner earnings = 0.010694261737662053.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2023: growth capex 0; upkeep 87006000; owner earnings 651534600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2024: growth capex 0; upkeep 101795000; owner earnings 294918800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2025: growth capex 0; upkeep 118907000; owner earnings 319328800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); FY2026: growth capex 0; upkeep 11828000; owner earnings 471785200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); Dividend observations: [[2017,88064000],[2018,92289000],[2019,95108000],[2020,105587000],[2021,113470000],[2022,126226000],[2023,186719000],[2024,246544000],[2025,284478000],[2026,298297000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 5.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CAR.AU SharesStats.PercentInsiders = 5.273 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.7% yearly over ten years; actual growth was 10.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:01.758Z); Ten-year compound average after fade. Initial solved rate 0.111304924672325. Price 22.98; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.4681916687528246 → FY2026 1.2463048201122608. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 10.16 per share

- 2016-11: AUD 10.04 per share

- 2016-12: AUD 10.82 per share

- 2017-01: AUD 9.95 per share

- 2017-02: AUD 10.61 per share

- 2017-03: AUD 10.64 per share

- 2017-04: AUD 11.19 per share

- 2017-05: AUD 10.45 per share

- 2017-06: AUD 10.98 per share

- 2017-07: AUD 11.78 per share

- 2017-08: AUD 12.96 per share

- 2017-09: AUD 12.23 per share

- 2017-10: AUD 13.07 per share

- 2017-11: AUD 13.87 per share

- 2017-12: AUD 13.81 per share

- 2018-01: AUD 14.30 per share

- 2018-02: AUD 13.50 per share

- 2018-03: AUD 12.88 per share

- 2018-04: AUD 13.67 per share

- 2018-05: AUD 13.95 per share

- 2018-06: AUD 14.41 per share

- 2018-07: AUD 13.29 per share

- 2018-08: AUD 14.78 per share

- 2018-09: AUD 13.79 per share

- 2018-10: AUD 11.63 per share

- 2018-11: AUD 11.32 per share

- 2018-12: AUD 10.49 per share

- 2019-01: AUD 12.02 per share

- 2019-02: AUD 12.10 per share

- 2019-03: AUD 12.06 per share

- 2019-04: AUD 12.83 per share

- 2019-05: AUD 12.95 per share

- 2019-06: AUD 12.90 per share

- 2019-07: AUD 14.08 per share

- 2019-08: AUD 15.04 per share

- 2019-09: AUD 14.58 per share

- 2019-10: AUD 14.82 per share

- 2019-11: AUD 15.64 per share

- 2019-12: AUD 15.84 per share

- 2020-01: AUD 16.44 per share

- 2020-02: AUD 15.44 per share

- 2020-03: AUD 11.20 per share

- 2020-04: AUD 13.53 per share

- 2020-05: AUD 15.40 per share

- 2020-06: AUD 16.91 per share

- 2020-07: AUD 17.54 per share

- 2020-08: AUD 19.82 per share

- 2020-09: AUD 19.71 per share

- 2020-10: AUD 19.80 per share

- 2020-11: AUD 19.38 per share

- 2020-12: AUD 19.08 per share

- 2021-01: AUD 18.70 per share

- 2021-02: AUD 17.81 per share

- 2021-03: AUD 16.98 per share

- 2021-04: AUD 18.96 per share

- 2021-05: AUD 18.69 per share

- 2021-06: AUD 19.15 per share

- 2021-07: AUD 21.20 per share

- 2021-08: AUD 24.32 per share

- 2021-09: AUD 24.55 per share

- 2021-10: AUD 23.89 per share

- 2021-11: AUD 24.43 per share

- 2021-12: AUD 24.31 per share

- 2022-01: AUD 21.36 per share

- 2022-02: AUD 19.86 per share

- 2022-03: AUD 20.27 per share

- 2022-04: AUD 20.72 per share

- 2022-05: AUD 19.86 per share

- 2022-06: AUD 18.24 per share

- 2022-07: AUD 20.49 per share

- 2022-08: AUD 22.42 per share

- 2022-09: AUD 18.66 per share

- 2022-10: AUD 20.16 per share

- 2022-11: AUD 22.66 per share

- 2022-12: AUD 20.60 per share

- 2023-01: AUD 22.51 per share

- 2023-02: AUD 22.51 per share

- 2023-03: AUD 22.13 per share

- 2023-04: AUD 23.76 per share

- 2023-05: AUD 23.23 per share

- 2023-06: AUD 23.82 per share

- 2023-07: AUD 24.86 per share

- 2023-08: AUD 28.74 per share

- 2023-09: AUD 27.94 per share

- 2023-10: AUD 27.63 per share

- 2023-11: AUD 27.78 per share

- 2023-12: AUD 31.14 per share

- 2024-01: AUD 33.01 per share

- 2024-02: AUD 36.76 per share

- 2024-03: AUD 36.08 per share

- 2024-04: AUD 33.83 per share

- 2024-05: AUD 34.89 per share

- 2024-06: AUD 35.25 per share

- 2024-07: AUD 34.85 per share

- 2024-08: AUD 37.86 per share

- 2024-09: AUD 37.46 per share

- 2024-10: AUD 37.78 per share

- 2024-11: AUD 41.50 per share

- 2024-12: AUD 36.03 per share

- 2025-01: AUD 40.57 per share

- 2025-02: AUD 37.10 per share

- 2025-03: AUD 31.49 per share

- 2025-04: AUD 33.31 per share

- 2025-05: AUD 35.56 per share

- 2025-06: AUD 37.42 per share

- 2025-07: AUD 38.18 per share

- 2025-08: AUD 40.44 per share

- 2025-09: AUD 36.78 per share

- 2025-10: AUD 35.70 per share

- 2025-11: AUD 34.77 per share

- 2025-12: AUD 30.76 per share

- 2026-01: AUD 27.60 per share

- 2026-02: AUD 26.52 per share

- 2026-03: AUD 22.80 per share

- 2026-04: AUD 25.37 per share

- 2026-05: AUD 24.84 per share

- 2026-06: AUD 25.76 per share

- 2026-07: AUD 25.99 per share

- 2026-08: AUD 27.65 per share

- 2026-09: AUD 22.37 per share

- 2026-10: AUD 22.69 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 7.09 per share, central AUD 10.07 per share, high AUD 11.81 per share

- FY2018: low AUD 6.37 per share, central AUD 7.93 per share, high AUD 9.21 per share

- FY2019: low AUD 6.23 per share, central AUD 7.04 per share, high AUD 8.12 per share

- FY2020: low AUD 6.13 per share, central AUD 6.88 per share, high AUD 7.88 per share

- FY2021: low AUD 5.95 per share, central AUD 6.64 per share, high AUD 7.56 per share

- FY2022: low AUD 4.93 per share, central AUD 5.57 per share, high AUD 6.41 per share

- FY2023: low AUD 7.11 per share, central AUD 8.02 per share, high AUD 9.24 per share

- FY2024: low AUD 9.99 per share, central AUD 11.26 per share, high AUD 12.96 per share

- FY2025: low AUD 10.62 per share, central AUD 11.99 per share, high AUD 13.81 per share

- FY2026: low AUD 11.31 per share, central AUD 12.76 per share, high AUD 14.69 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

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