LSE:AUTO

Stock Analysis Report

Executive Summary

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland.


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has Auto Trader Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AUTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.6%

AUTO

17.5%

GB Interactive Media and Services

10.0%

GB Market


1 Year Return

-15.0%

AUTO

-20.1%

GB Interactive Media and Services

-23.0%

GB Market

Return vs Industry: AUTO exceeded the UK Interactive Media and Services industry which returned -20.1% over the past year.

Return vs Market: AUTO exceeded the UK Market which returned -23% over the past year.


Shareholder returns

AUTOIndustryMarket
7 Day21.6%17.5%10.0%
30 Day-14.7%-19.4%-17.6%
90 Day-25.4%-26.8%-27.3%
1 Year-13.9%-15.0%-19.4%-20.1%-18.9%-23.0%
3 Year18.6%13.8%-1.4%-4.1%-12.9%-24.2%
5 Year77.2%68.6%22.0%18.0%1.6%-21.8%

Price Volatility Vs. Market

How volatile is Auto Trader Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Auto Trader Group undervalued compared to its fair value and its price relative to the market?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AUTO (£4.43) is trading below our estimate of fair value (£4.75)

Significantly Below Fair Value: AUTO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AUTO is good value based on its PE Ratio (19.8x) compared to the Interactive Media and Services industry average (22.3x).

PE vs Market: AUTO is poor value based on its PE Ratio (19.8x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: AUTO is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AUTO is overvalued based on its PB Ratio (42.9x) compared to the GB Interactive Media and Services industry average (1.4x).


Next Steps

Future Growth

How is Auto Trader Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUTO's forecast earnings growth (5.4% per year) is above the savings rate (0.5%).

Earnings vs Market: AUTO's earnings (5.4% per year) are forecast to grow slower than the UK market (15.5% per year).

High Growth Earnings: AUTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: AUTO's revenue (5.1% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: AUTO's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AUTO's Return on Equity is forecast to be very high in 3 years time (180.7%).


Next Steps

Past Performance

How has Auto Trader Group performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUTO has high quality earnings.

Growing Profit Margin: AUTO's current net profit margins (57.1%) are higher than last year (52.4%).


Past Earnings Growth Analysis

Earnings Trend: AUTO has become profitable over the past 5 years, growing earnings by 29.2% per year.

Accelerating Growth: AUTO's earnings growth over the past year (16.3%) is below its 5-year average (29.2% per year).

Earnings vs Industry: AUTO earnings growth over the past year (16.3%) exceeded the Interactive Media and Services industry -4.9%.


Return on Equity

High ROE: Whilst AUTO's Return on Equity (218.12%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Auto Trader Group's financial position?


Financial Position Analysis

Short Term Liabilities: AUTO's short term assets (£89.0M) exceed its short term liabilities (£44.3M).

Long Term Liabilities: AUTO's short term assets (£89.0M) do not cover its long term liabilities (£335.0M).


Debt to Equity History and Analysis

Debt Level: AUTO's debt to equity ratio (341%) is considered high.

Reducing Debt: AUTO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AUTO's debt is well covered by operating cash flow (59.1%).

Interest Coverage: AUTO's interest payments on its debt are well covered by EBIT (32.3x coverage).


Balance Sheet

Inventory Level: AUTO has a low level of unsold assets or inventory.

Debt Coverage by Assets: AUTO's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Auto Trader Group's current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AUTO's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: AUTO's dividend (1.51%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AUTO has been paying a dividend for less than 10 years.

Growing Dividend: AUTO's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), AUTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AUTO's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Nathan Coe

no data

Tenure

UK£1,108,000

Compensation

Mr. Nathan Coe serves as the Chief Executive Officer of Auto Trader Group PLC since March 1, 2020. He had been the Chief Financial Officer of Auto Trader Group plc since July 2017 until March 1, 2020 and h ...


CEO Compensation Analysis

Compensation vs Market: Nathan's total compensation ($USD1.37M) is below average for companies of similar size in the UK market ($USD3.41M).

Compensation vs Earnings: Nathan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nathan Coe
CEO & Executive Directorno dataUK£1.11m0.32% £13.0m
Jamie Warner
CFO & Directorno datano datano data
Catherine Faiers
COO & Director0.83yrno data0.0018% £74.5k
Chris Kelly
Technology Director6.42yrsno datano data
Claire Baty
Company Secretary3.33yrsno datano data
Mark George
Deputy Chief Financial Officer3yrsno datano data

3.2yrs

Average Tenure

Experienced Management: AUTO's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathan Coe
CEO & Executive Directorno dataUK£1.11m0.32% £13.0m
Jamie Warner
CFO & Directorno datano datano data
Catherine Faiers
COO & Director0.83yrno data0.0018% £74.5k
David Keens
Senior Independent Non-Executive Director4.83yrsUK£75.00k0.0054% £221.8k
Edmund Williams
Independent Chairman of the Board6yrsUK£180.00k0.75% £30.5m
Jill Easterbrook
Independent Non-Executive Director4.67yrsUK£65.00kno data
Sigga Sigurdardottir
Independent Non-Executive Director0.33yrno datano data
Jeni Mundy
Independent Non-Executive Director4yrsUK£56.00kno data

4.0yrs

Average Tenure

Experienced Board: AUTO's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AUTO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Auto Trader Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Auto Trader Group plc
  • Ticker: AUTO
  • Exchange: LSE
  • Founded: 1977
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: UK£4.069b
  • Shares outstanding: 917.91m
  • Website: https://www.autotrader.co.uk

Number of Employees


Location

  • Auto Trader Group plc
  • 1 Tony Wilson Place
  • 4th Floor
  • Manchester
  • Greater Manchester
  • M15 4FN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUTOLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2015
2UADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015
AUTOlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2015
ATDR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2015
ATDR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2015

Biography

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. It offers its products to retailers and home traders, and logistics firms; vehicle advertisement on its Websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its Websites for manufacturers and their advertising agencies. The company was founded in 1977 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:33
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.