company background image
AUTO

Auto Trader Group LSE:AUTO Stock Report

Last Price

UK£6.59

Market Cap

UK£6.2b

7D

0.8%

1Y

3.4%

Updated

12 Aug, 2022

Data

Company Financials +
AUTO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends2/6

AUTO Stock Overview

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

Auto Trader Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Auto Trader Group
Historical stock prices
Current Share PriceUK£6.59
52 Week HighUK£7.51
52 Week LowUK£4.99
Beta0.40
1 Month Change15.42%
3 Month Change17.69%
1 Year Change3.39%
3 Year Change25.44%
5 Year Change85.32%
Change since IPO157.34%

Recent News & Updates

May 30
Estimating The Fair Value Of Auto Trader Group plc (LON:AUTO)

Estimating The Fair Value Of Auto Trader Group plc (LON:AUTO)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Auto Trader Group plc...

Shareholder Returns

AUTOGB Interactive Media and ServicesGB Market
7D0.8%0.9%0.7%
1Y3.4%-29.1%-7.8%

Return vs Industry: AUTO exceeded the UK Interactive Media and Services industry which returned -28.5% over the past year.

Return vs Market: AUTO exceeded the UK Market which returned -9.1% over the past year.

Price Volatility

Is AUTO's price volatile compared to industry and market?
AUTO volatility
AUTO Average Weekly Movement4.5%
Interactive Media and Services Industry Average Movement7.2%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: AUTO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AUTO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19771,002Nathan Coehttps://www.autotrader.co.uk

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides 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. It offers its products to retailers, home traders, and logistics firms.

Auto Trader Group Fundamentals Summary

How do Auto Trader Group's earnings and revenue compare to its market cap?
AUTO fundamental statistics
Market CapUK£6.20b
Earnings (TTM)UK£244.70m
Revenue (TTM)UK£432.70m

25.3x

P/E Ratio

14.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AUTO income statement (TTM)
RevenueUK£432.70m
Cost of RevenueUK£0
Gross ProfitUK£432.70m
Other ExpensesUK£188.00m
EarningsUK£244.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin100.00%
Net Profit Margin56.55%
Debt/Equity Ratio0%

How did AUTO perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

32%

Payout Ratio

Does AUTO pay a reliable dividends?

See AUTO dividend history and benchmarks
When do you need to buy AUTO by to receive an upcoming dividend?
Auto Trader Group dividend dates
Ex Dividend DateAug 25 2022
Dividend Pay DateSep 23 2022
Days until Ex dividend11 days
Days until Dividend pay date40 days

Does AUTO pay a reliable dividends?

See AUTO dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is AUTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AUTO?

Other financial metrics that can be useful for relative valuation.

AUTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.2x
Enterprise Value/EBITDA20.2x
PEG Ratio5.2x

Price to Earnings Ratio vs Peers

How does AUTO's PE Ratio compare to its peers?

AUTO PE Ratio vs Peers
The above table shows the PE ratio for AUTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.6x
RMV Rightmove
28.9x6.2%UK£5.4b
MONY Moneysupermarket.com Group
20.1x19.3%UK£1.2b
BOOM Audioboom Group
17.7x-49.9%UK£117.3m
PSON Pearson
23.7x17.5%UK£6.5b
AUTO Auto Trader Group
25.3x4.9%UK£6.2b

Price-To-Earnings vs Peers: AUTO is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (22.6x).


Price to Earnings Ratio vs Industry

How does AUTO's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

Price-To-Earnings vs Industry: AUTO is good value based on its Price-To-Earnings Ratio (25.3x) compared to the UK Interactive Media and Services industry average (27.3x)


Price to Earnings Ratio vs Fair Ratio

What is AUTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AUTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio24.5x

Price-To-Earnings vs Fair Ratio: AUTO is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).


Share Price vs Fair Value

What is the Fair Price of AUTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AUTO (£6.59) is trading above our estimate of fair value (£5.88)

Significantly Below Fair Value: AUTO is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Auto Trader Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUTO's forecast earnings growth (4.9% per year) is above the savings rate (0.9%).

Earnings vs Market: AUTO's earnings (4.9% per year) are forecast to grow slower than the UK market (9.4% per year).

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

Revenue vs Market: AUTO's revenue (10.2% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: AUTO's revenue (10.2% 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 (46.8%).


Discover growth companies

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AUTO has high quality earnings.

Growing Profit Margin: AUTO's current net profit margins (56.6%) are higher than last year (48.6%).


Past Earnings Growth Analysis

Earnings Trend: AUTO's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: AUTO's earnings growth over the past year (91.5%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: AUTO earnings growth over the past year (91.5%) exceeded the Interactive Media and Services industry 22.9%.


Return on Equity

High ROE: AUTO's Return on Equity (51.8%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Auto Trader Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AUTO's short term assets (£117.8M) exceed its short term liabilities (£53.7M).

Long Term Liabilities: AUTO's short term assets (£117.8M) exceed its long term liabilities (£16.7M).


Debt to Equity History and Analysis

Debt Level: AUTO is debt free.

Reducing Debt: AUTO currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: AUTO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AUTO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.24%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 13 2022Ex Dividend DateAug 25 2022Dividend Pay DateSep 23 202229 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AUTO's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AUTO's dividend (1.24%) is low compared to the top 25% of dividend payers in the UK market (5.13%).


Stability and Growth of Payments

Stable Dividend: AUTO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AUTO's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32%), AUTO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.7%), AUTO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Nathan Coe

2.42yrs

Tenure

UK£1,727,000

Compensation

Mr. Nathan Coe has been the Chief Executive Officer of Auto Trader Group PLC since March 1, 2020. Mr. Coe served as the Chief Financial Officer of Auto Trader Group plc from July 2017 to March 1, 2020 and...


CEO Compensation Analysis

Compensation vs Market: Nathan's total compensation ($USD2.09M) is below average for companies of similar size in the UK market ($USD3.28M).

Compensation vs Earnings: Nathan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AUTO's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: AUTO's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Auto Trader Group plc's 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
  • Implied Market Cap: UK£6.202b
  • Shares outstanding: 941.36m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.