NasdaqGS:CAR

Stock Analysis Report

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Executive Summary

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers. More Details


Snowflake Analysis

High growth potential with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

23.0%

CAR

0.2%

US Transportation

-1.3%

US Market


1 Year Return

21.2%

CAR

14.1%

US Transportation

18.5%

US Market

Return vs Industry: CAR exceeded the US Transportation industry which returned 14.1% over the past year.

Return vs Market: CAR exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

CARIndustryMarket
7 Day23.0%0.2%-1.3%
30 Day17.1%1.3%5.3%
90 Day21.4%11.0%7.5%
1 Year21.2%21.2%15.7%14.1%21.3%18.5%
3 Year-12.2%-12.2%67.1%59.0%42.4%32.9%
5 Year-25.5%-25.5%154.8%132.7%84.2%63.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Avis Budget Group undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: CAR ($36.24) is trading above our estimate of fair value ($19.86)

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


Price To Earnings Ratio

PE vs Industry: CAR is unprofitable, so we can't compare its PE Ratio to the US Transportation industry average.

PE vs Market: CAR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAR has negative assets, so we can't compare its PB Ratio to the US Transportation industry average.


Next Steps

Future Growth

How is Avis Budget Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

86.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CAR's is expected to become profitable in the next 3 years.

Revenue vs Market: CAR's revenue (16.4% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: CAR's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAR's Return on Equity is forecast to be very high in 3 years time (82%).


Next Steps

Past Performance

How has Avis Budget Group performed over the past 5 years?

-13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAR is currently unprofitable.

Growing Profit Margin: CAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAR is unprofitable, and losses have increased over the past 5 years at a rate of 13.8% per year.

Accelerating Growth: Unable to compare CAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAR is unprofitable, making it difficult to compare its past year earnings growth to the Transportation industry (-17.5%).


Return on Equity

High ROE: CAR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Avis Budget Group's financial position?


Financial Position Analysis

Short Term Liabilities: CAR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CAR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CAR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CAR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: CAR's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: CAR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Avis Budget Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Joe Ferraro (63 yo)

0.75

Tenure

US$4,929,006

Compensation

Mr. Joseph A. Ferraro, also known as Joe, serves as President at Avis Budget Group, Inc. since June 12, 2020. He has been President & Chief Executive Officer at Budget Rent A Car System, Inc. since June 20 ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD4.93M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Ferraro
CEO & President0.75yrUS$4.93m0.16%
$ 4.0m
Edward Linnen
Chief Human Resource Officer & Executive VP7.67yrsUS$1.51m0.067%
$ 1.7m
John North
0.17yrUS$5.72m0.016%
$ 411.5k
Patrick Rankin
President of International Region1.33yrsUS$2.71m0.0061%
$ 153.8k
Bernardo Hees
Executive Chairman0.67yrno data0.62%
$ 15.6m
Brian Choi
Chief Financial Officer0.17yrno datano data
Cathleen DeGenova
VP & Chief Accounting Officer1.17yrsno data0.00041%
$ 10.4k
David Calabria
Treasurer & Senior VP of Corporate Finance1.75yrsno data0.016%
$ 400.4k
Gerard Insall
Chief Information Officer & Executive VPno datano datano data
Jean Sera
Senior VP0.58yrno data0.021%
$ 525.7k
Vanessa Wolczak
Head of Marketing2.17yrsno datano data
Izilda Martins
Executive Vice President of Americas9.92yrsno data0.010%
$ 260.1k

1.2yrs

Average Tenure

50yo

Average Age

Experienced Management: CAR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bernardo Hees
Executive Chairman0.67yrno data0.62%
$ 15.6m
Lynn Krominga
Independent Director14yrsUS$260.50k0.0083%
$ 208.8k
Carl Sparks
Independent Director2.5yrsUS$260.50k0%
$ 0
Glenn Lurie
Independent Director2.42yrsUS$251.52k0%
$ 0
Karthik Sarma
Independent Director0.42yrno datano data
Jagdeep Pahwa
Independent Vice-Chairman of the Board0.42yrno datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Board: CAR's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Avis Budget Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avis Budget Group, Inc.
  • Ticker: CAR
  • Exchange: NasdaqGS
  • Founded: 1946
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$2.525b
  • Shares outstanding: 69.67m
  • Website: https://www.avisbudgetgroup.com

Number of Employees


Location

  • Avis Budget Group, Inc.
  • 6 Sylvan Way
  • Parsippany
  • New Jersey
  • 7054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUCADB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1983
CARNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1983
CAR *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 1983
0HK4LSE (London Stock Exchange)YesCommon SharesGBUSDSep 1983
CARBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1 ORD USD0.01ARARSDec 2003

Biography

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers. It operates the Avis brand, a vehicle rental system ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:57
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.