LSE:AUTO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.

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


Market Performance


7 Day Return

-1.9%

LSE:AUTO

-2.8%

GB Interactive Media and Services

-1.7%

GB Market


1 Year Return

17.6%

LSE:AUTO

6.0%

GB Interactive Media and Services

-5.7%

GB Market

AUTO outperformed the Interactive Media and Services industry which returned 6% over the past year.

AUTO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

AUTOIndustryMarket
7 Day-1.9%-2.8%-1.7%
30 Day-4.5%-3.1%-4.6%
90 Day-10.3%-9.8%-3.2%
1 Year19.2%17.6%7.0%6.0%-1.3%-5.7%
3 Year39.9%35.0%29.9%26.5%17.8%4.0%
5 Yearn/a6.3%4.3%26.9%0.2%

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 based on future cash flows and its price relative to the stock market?

25.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Auto Trader Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Auto Trader Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Auto Trader Group is good value based on earnings compared to the Europe Interactive Media and Services industry average.

Auto Trader Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Auto Trader Group is poor value based on expected growth next year.


Price Based on Value of Assets

Auto Trader Group is overvalued based on assets compared to the GB Interactive Media and Services industry average.


Next Steps

Future Growth

How is Auto Trader Group expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Auto Trader Group's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Auto Trader Group's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Auto Trader Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Auto Trader Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Auto Trader Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Auto Trader Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

35.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Auto Trader Group has delivered over 20% year on year earnings growth in the past 5 years.

Auto Trader Group's 1-year earnings growth is less than its 5-year average (15.5% vs 35.7%)

Auto Trader Group's earnings growth has not exceeded the Europe Interactive Media and Services industry average in the past year (15.5% vs 16.3%).


Return on Equity

Whilst Auto Trader Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Auto Trader Group used its assets more efficiently than the Europe Interactive Media and Services industry average last year based on Return on Assets.


Return on Capital Employed

Auto Trader Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Auto Trader Group's financial position?


Financial Position Analysis

Auto Trader Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Auto Trader Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Auto Trader Group's level of debt (525.9%) compared to net worth is high (greater than 40%).

Auto Trader Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (69.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 23.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

1.55%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Auto Trader Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Auto Trader Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).

Auto Trader Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

Whilst dividend payments have been stable, Auto Trader Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Auto Trader Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Auto Trader Group's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Trevor Mather (51yo)

6.2yrs

Tenure

UK£1,910,000

Compensation

Mr. Trevor Mather has been the Chief Executive Officer of Auto Trader Group Plc (a/k/a, Trader Media Group Limited) since June 2013 and also served as its Managing Director since June 10, 2013. Mr. Mather  ...


CEO Compensation Analysis

Trevor's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Trevor's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

The tenure for the Auto Trader Group management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

The tenure for the Auto Trader Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£2,077,82028 Jan 19
Trevor Mather
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares460,000
Max PriceUK£4.52

Ownership Breakdown


Management Team

  • Trevor Mather (51yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: £1.91m
  • Nathan Coe

    CFO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: £1.11m
  • Claire Baty

    Company Secretary

    • Tenure: 2.8yrs
  • Chris Kelly

    Technology Director

    • Tenure: 5.8yrs
  • Mark George

    Deputy Chief Financial Officer

    • Tenure: 2.4yrs
  • Catherine Faiers

    COO & Director

    • Tenure: 0.3yrs

Board Members

  • David Keens (65yo)

    Senior Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: £75.00k
  • Trevor Mather (51yo)

    CEO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: £1.91m
  • Ed Williams (56yo)

    Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: £180.00k
  • Nathan Coe

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: £1.11m
  • Jill Easterbrook

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: £65.00k
  • Jeni Mundy

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: £56.00k
  • Catherine Faiers

    COO & Director

    • Tenure: 0.3yrs

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£4.862b
  • Shares outstanding: 925.81m
  • Website: Click here

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
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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 22:01
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.