Auto Trader Group
Market Cap
UK£4.1b
Last Updated
2020/03/30 23:33 UTC
Data Sources
Company Financials +
Executive Summary
Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland.
Rewards
Risk Analysis
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
| AUTO | Industry | Market | |
|---|---|---|---|
| 7 Day | 21.6% | 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 Year | 18.6%13.8% | -1.4%-4.1% | -12.9%-24.2% |
| 5 Year | 77.2%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
1 week ago | Simply Wall St
Senior Independent Non-Executive Director David Keens Just Bought Shares In Auto Trader Group plc (LON:AUTO)2 weeks ago | Simply Wall St
Do Directors Own Auto Trader Group plc (LON:AUTO) Shares?4 weeks ago | Simply Wall St
How Should Investors Feel About Auto Trader Group plc's (LON:AUTO) CEO Pay?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | no data | UK£1.11m | 0.32% £13.0m | |
| CFO & Director | no data | no data | no data | |
| COO & Director | 0.83yr | no data | 0.0018% £74.5k | |
| Technology Director | 6.42yrs | no data | no data | |
| Company Secretary | 3.33yrs | no data | no data | |
| Deputy Chief Financial Officer | 3yrs | no data | no data |
3.2yrs
Average Tenure
Experienced Management: AUTO's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | no data | UK£1.11m | 0.32% £13.0m | |
| CFO & Director | no data | no data | no data | |
| COO & Director | 0.83yr | no data | 0.0018% £74.5k | |
| Senior Independent Non-Executive Director | 4.83yrs | UK£75.00k | 0.0054% £221.8k | |
| Independent Chairman of the Board | 6yrs | UK£180.00k | 0.75% £30.5m | |
| Independent Non-Executive Director | 4.67yrs | UK£65.00k | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data | |
| Independent Non-Executive Director | 4yrs | UK£56.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AUTO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Mar 2015 |
| 2UA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 2015 |
| AUTOl | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Mar 2015 |
| ATDR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Mar 2015 |
| ATDR.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 23:33 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.