# Turners Automotive Group (TRA.AU)

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

Analysis as of: 2026-10-16T07:47:30.697Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: NZD.

## 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 6.99 per share; close as of 2026-10-15.

Estimated value: low AUD 4.14 per share, central AUD 5.58 per share, high AUD 6.41 per share. Buy at or below the central value AUD 5.58 per share. Valuation as of 2026-10-16T07:47:30.697Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% 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: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 1.46×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.14×

- FY2019: 0.13×

- FY2020: 0.13×

- FY2021: 0.16×

- FY2022: 0.16×

- FY2023: 0.17×

- FY2024: 0.01×

- FY2025: -0.30×

- FY2026: 0.20×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 13.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.9%

- ROIC, second-lowest year: 0.5%

- Typical minus recent gross margin: 13.8 pp

- Typical gross margin (annual median): 55.2%

- Recent gross margin (lower of latest and 3-year median): 41.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.6%

- ROIC including acquisitions, ten-year median: 2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 9.9%

- FY2018: 8.2%

- FY2019: 6.3%

- FY2020: 7.6%

- FY2021: 8.2%

- FY2022: 7.6%

- FY2023: 8.7%

- FY2024: 0.5%

- FY2025: -9.5%

- FY2026: 8.4%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.58×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD 100M

- Net income, five-year total: NZD 174M

- Return on incremental invested capital: 29.2%

- Working capital / revenue, annual change: 3.5 pp

- Working capital / revenue, change between three-year averages: 26.0 pp

- Working capital / revenue, final three-year average: 71.1%

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

- FY2022: 0.82×

- FY2023: 0.18×

- FY2024: 0.64×

- FY2025: 0.33×

- FY2026: 0.90×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2026 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.2% vs 0.5%

- Per-share earnings: 0.18 to 0.49 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.2%

- Ordinary dilution, 5-year annual growth: -2.7%

- Market cap gain: NZD 348M

- Cumulative retained earnings: NZD 81M

- Diluted shares, 10-year annual growth: -1.2%

- Diluted shares, 5-year annual growth: -2.7%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 13.1%

- Per-share value change: NZD 0.31

- Per-share value, starting three-year median: NZD 0.18

- Per-share value, ending three-year median: NZD 0.49

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 1.0%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: NZD 146M

- Cumulative net income, 10 years: NZD 285M

- ROIC, first three-year median: 8.2%

- ROIC, last three-year median: 0.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: NZD 0.18

- FY2018: NZD 0.26

- FY2019: NZD 0.27

- FY2020: NZD 0.24

- FY2021: NZD 0.31

- FY2022: NZD 0.36

- FY2023: NZD 0.37

- FY2024: NZD 0.37

- FY2025: NZD 0.49

- FY2026: NZD 0.51

### accounting: fail

- Sloan accruals exceed 10%

- earnings not backed by cash

- Sloan accruals: 10.5%

- Receivables to sales index (DSRI): 0.02×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -1.96×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.75×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 5.6%

- FY2018: 16.1%

- FY2019: 5.8%

- FY2020: 3.0%

- FY2021: 2.2%

- FY2022: 9.1%

- FY2023: -4.2%

- FY2024: 0.4%

- FY2025: 0.5%

- FY2026: 10.5%

## Holders

## Price story

Price needs cash profits to grow 9.8% a year for ten years · sales +77%

Story as of 2026-10-16T10:00:13.724Z; price observation 2026-10-15.

Price needs cash profits to grow 9.8% a year for ten years

### Sales · FY2025–2026

sales +77%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: NZD 251M 

- FY2018: NZD 325M 

- FY2019: NZD 328M 

- FY2020: NZD 332M 

- FY2021: NZD 297M 

- FY2022: NZD 342M 

- FY2023: NZD 389M 

- FY2024: NZD 344M 

- FY2025: NZD 255M 

- FY2026: NZD 452M 

### Gross margin · FY2026

gross margin 41.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 43.2% 

- FY2018: 57.8% 

- FY2019: 59.5% 

- FY2020: 59.4% 

- FY2021: 60.9% 

- FY2022: 55.2% 

- FY2023: 55.3% 

- FY2024: 48.6% 

- FY2025: 34.4% 

- FY2026: 41.4% 

## Owner memo

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

### How it makes money

Operates in auto & truck dealerships; annual sales are NZD 452.2 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2026: revenue 452226881; grossProfit 187289808; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TRA.AU: Turners Automotive Group Limited engages in the automotive retail and finance business in New Zealand and Australia. It operates through Auto Retail, Finance, Insurance, Credit Management, and Corporate and other segments. The Auto Retail segment engages in retail and remarketing of motor vehicles, trucks, heavy machinery, and commercial goods; and purchasing goods or sale and property holdings. The Finance segment provides finance to consumers and SMEs and consumer and commercial lending for automotive customers. The Insurance segment markets and administers motor vehicle loan protection and life insurance solutions through car dealers, finance companies, brokers, and life insurance advisers. The Credit Management segment provides collection, credit management, and debt recovery services to the corporate and SME sectors. It is also involved in the auction, property, and trustee businesses, as well as in the turners servicing and repair business. The company was formerly known as Turners Limited and changed its name to Turners Automotive Group Limited in May 2017. Turners Automotive Group Limited was incorporated in 1984 and is based in Auckland, New Zealand.

### Why customers stay

Margins ranged from 34.4% to 48.6% during 2024–26; it earns 7.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2024: grossProfit / revenue = 48.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2025: grossProfit / revenue = 34.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2026: grossProfit / revenue = 41.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); 10-year return on capital observations [[2017,0.09921650730055626],[2018,0.08237169679661704],[2019,0.0633253736360944],[2020,0.07635855800984215],[2021,0.08184750806226802],[2022,0.07580356592756944],[2023,0.08668824656479862],[2024,0.005460201381183739],[2025,-0.09547566787175445],[2026,0.08369349036898655]]; median 0.07910303303605509. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 89.5% of cash earnings on expansion; earns 29.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2017: growth capex 5121742.749647697; upkeep 3279257.2503523026; owner earnings 17157742.7496477. Growth capex / owner earnings = 0.2985091235123491.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2018: growth capex 5523684.236009829; upkeep 17174315.76399017; owner earnings 11812684.236009829. Growth capex / owner earnings = 0.4676061871840619.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2019: growth capex 306502.22251126915; upkeep 12510497.77748873; owner earnings 15993502.22251127. Growth capex / owner earnings = 0.019164171689666526.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2020: growth capex 460690.08248158917; upkeep 18784309.91751841; owner earnings 7585490.082481589. Growth capex / owner earnings = 0.0607330676689613.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2021: growth capex 0; upkeep 8641000; owner earnings 23891600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2022: growth capex 5419000; upkeep 10702000; owner earnings 25639200. Growth capex / owner earnings = 0.21135604855065682.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2023: growth capex 11573476.844399411; upkeep 32603523.15560059; owner earnings 6016476.844399411. Growth capex / owner earnings = 1.9236302480201304.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2024: growth capex 0; upkeep 18641000; owner earnings 21120394. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2025: growth capex 0; upkeep 32897000; owner earnings 12811042. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); FY2026: growth capex 30825822; upkeep 11177797; owner earnings 34436931. Growth capex / owner earnings = 0.8951384779323105.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); Incremental return on capital 0.29241129902377994, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); Dividend observations: [[2017,8595000],[2018,11417000],[2019,15214000],[2020,14742000],[2021,17200000],[2022,13770000],[2023,19896000],[2024,21956000],[2025,13703000],[2026,22137014]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 32.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TRA.AU SharesStats.PercentInsiders = 32.607 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.8% yearly over ten years; actual growth was 9.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:30.697Z); Ten-year compound average after fade. Initial solved rate 0.12725512531153493. Price 6.99; FX 0.8124078517533463; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.18189555170825827 → FY2026 0.45473781579628464. Closing-price date 2026-10-15.

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

- 2018-02: AUD 3.00 per share

- 2018-03: AUD 3.00 per share

- 2018-04: AUD 3.00 per share

- 2018-05: AUD 3.00 per share

- 2018-06: AUD 3.00 per share

- 2018-07: AUD 3.00 per share

- 2018-08: AUD 3.00 per share

- 2018-09: AUD 3.00 per share

- 2018-10: AUD 3.00 per share

- 2018-11: AUD 3.00 per share

- 2018-12: AUD 2.90 per share

- 2019-01: AUD 2.89 per share

- 2019-02: AUD 2.89 per share

- 2019-03: AUD 2.89 per share

- 2019-04: AUD 2.10 per share

- 2019-05: AUD 2.10 per share

- 2019-06: AUD 2.10 per share

- 2019-07: AUD 2.16 per share

- 2019-08: AUD 2.16 per share

- 2019-09: AUD 2.16 per share

- 2019-10: AUD 2.16 per share

- 2019-11: AUD 2.25 per share

- 2019-12: AUD 2.25 per share

- 2020-01: AUD 2.25 per share

- 2020-02: AUD 2.30 per share

- 2020-03: AUD 2.10 per share

- 2020-04: AUD 1.54 per share

- 2020-05: AUD 1.60 per share

- 2020-06: AUD 2.00 per share

- 2020-07: AUD 2.00 per share

- 2020-08: AUD 2.00 per share

- 2020-09: AUD 2.00 per share

- 2020-10: AUD 2.20 per share

- 2020-11: AUD 2.70 per share

- 2020-12: AUD 2.75 per share

- 2021-01: AUD 2.90 per share

- 2021-02: AUD 2.85 per share

- 2021-03: AUD 2.85 per share

- 2021-04: AUD 2.85 per share

- 2021-05: AUD 2.85 per share

- 2021-06: AUD 2.85 per share

- 2021-07: AUD 2.85 per share

- 2021-08: AUD 2.85 per share

- 2021-09: AUD 2.85 per share

- 2021-10: AUD 2.85 per share

- 2021-11: AUD 3.11 per share

- 2021-12: AUD 3.25 per share

- 2022-01: AUD 3.25 per share

- 2022-02: AUD 3.25 per share

- 2022-03: AUD 3.25 per share

- 2022-04: AUD 3.25 per share

- 2022-05: AUD 3.25 per share

- 2022-06: AUD 3.25 per share

- 2022-07: AUD 3.35 per share

- 2022-08: AUD 3.40 per share

- 2022-09: AUD 3.40 per share

- 2022-10: AUD 3.34 per share

- 2022-11: AUD 3.34 per share

- 2022-12: AUD 3.37 per share

- 2023-01: AUD 3.39 per share

- 2023-02: AUD 3.36 per share

- 2023-03: AUD 3.10 per share

- 2023-04: AUD 3.30 per share

- 2023-05: AUD 3.30 per share

- 2023-06: AUD 3.35 per share

- 2023-07: AUD 3.25 per share

- 2023-08: AUD 3.25 per share

- 2023-09: AUD 3.25 per share

- 2023-10: AUD 3.52 per share

- 2023-11: AUD 4.07 per share

- 2023-12: AUD 4.07 per share

- 2024-01: AUD 4.15 per share

- 2024-02: AUD 4.33 per share

- 2024-03: AUD 4.40 per share

- 2024-04: AUD 4.32 per share

- 2024-05: AUD 4.36 per share

- 2024-06: AUD 4.40 per share

- 2024-07: AUD 4.48 per share

- 2024-08: AUD 4.30 per share

- 2024-09: AUD 4.30 per share

- 2024-10: AUD 4.20 per share

- 2024-11: AUD 4.60 per share

- 2024-12: AUD 4.63 per share

- 2025-01: AUD 4.82 per share

- 2025-02: AUD 4.82 per share

- 2025-03: AUD 4.90 per share

- 2025-04: AUD 4.90 per share

- 2025-05: AUD 5.10 per share

- 2025-06: AUD 5.10 per share

- 2025-07: AUD 5.15 per share

- 2025-08: AUD 5.15 per share

- 2025-09: AUD 5.96 per share

- 2025-10: AUD 6.42 per share

- 2025-11: AUD 6.85 per share

- 2025-12: AUD 7.08 per share

- 2026-01: AUD 7.24 per share

- 2026-02: AUD 7.24 per share

- 2026-03: AUD 7.24 per share

- 2026-04: AUD 7.24 per share

- 2026-05: AUD 7.07 per share

- 2026-06: AUD 7.05 per share

- 2026-07: AUD 6.80 per share

- 2026-08: AUD 6.79 per share

- 2026-09: AUD 7.00 per share

- 2026-10: AUD 7.00 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 4.53 per share, central AUD 5.07 per share, high AUD 5.78 per share

- FY2018: low AUD 3.87 per share, central AUD 5.45 per share, high AUD 6.37 per share

- FY2019: low AUD 3.05 per share, central AUD 3.37 per share, high AUD 3.80 per share

- FY2020: low AUD 2.96 per share, central AUD 3.86 per share, high AUD 4.38 per share

- FY2021: low AUD 2.19 per share, central AUD 2.39 per share, high AUD 2.66 per share

- FY2022: low AUD 2.84 per share, central AUD 3.75 per share, high AUD 4.28 per share

- FY2023: low AUD 2.87 per share, central AUD 3.61 per share, high AUD 4.12 per share

- FY2024: low AUD 2.84 per share, central AUD 3.14 per share, high AUD 3.52 per share

- FY2025: low AUD 2.76 per share, central AUD 3.00 per share, high AUD 3.32 per share

- FY2026: low AUD 4.99 per share, central AUD 6.72 per share, high AUD 7.73 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