Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers. More Details
Limited growth with poor track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: CAR's weekly volatility (9%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CAR exceeded the US Transportation industry which returned 15.6% over the past year.
Return vs Market: CAR exceeded the US Market which returned 33.8% over the past year.
Long-Term 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
1 day ago | Simply Wall StHere's Why Avis Budget Group (NASDAQ:CAR) Has A Meaningful Debt Burden
3 weeks ago | Simply Wall StReturn Trends At Avis Budget Group (NASDAQ:CAR) Aren't Appealing
1 month ago | Simply Wall StAn Intrinsic Calculation For Avis Budget Group, Inc. (NASDAQ:CAR) Suggests It's 25% Undervalued
Is Avis Budget Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CAR ($95.32) is trading above our estimate of fair value ($83.58)
Significantly Below Fair Value: CAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CAR is poor value based on its PE Ratio (34.7x) compared to the US Transportation industry average (17.4x).
PE vs Market: CAR is poor value based on its PE Ratio (34.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CAR is poor value based on its PEG Ratio (22.1x)
Price to Book Ratio
PB vs Industry: CAR is overvalued based on its PB Ratio (68.9x) compared to the US Transportation industry average (2.4x).
How is Avis Budget Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAR's forecast earnings growth (1.6% per year) is below the savings rate (2%).
Earnings vs Market: CAR's earnings (1.6% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: CAR's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAR's revenue (10% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: CAR's revenue (10% 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 (102.9%).
How has Avis Budget Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAR has a large one-off loss of $281.0M impacting its June 30 2021 financial results.
Growing Profit Margin: CAR became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CAR's earnings have declined by 40.1% per year over the past 5 years.
Accelerating Growth: CAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Transportation industry (48.3%).
Return on Equity
High ROE: Whilst CAR's Return on Equity (198.91%) is outstanding, this metric is skewed due to their high level of debt.
How is Avis Budget Group's financial position?
Financial Position Analysis
Short Term Liabilities: CAR's short term assets ($2.8B) exceed its short term liabilities ($2.5B).
Long Term Liabilities: CAR's short term assets ($2.8B) do not cover its long term liabilities ($19.5B).
Debt to Equity History and Analysis
Debt Level: CAR's debt to equity ratio (16032.6%) is considered high.
Reducing Debt: CAR's debt to equity ratio has increased from 4318.8% to 16032.6% over the past 5 years.
Debt Coverage: CAR's debt is not well covered by operating cash flow (10.8%).
Interest Coverage: CAR's interest payments on its debt are not well covered by EBIT (1.8x coverage).
What is Avis Budget Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CAR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CAR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Ferraro (64 yo)
Mr. Joseph A. Ferraro, also known as Joe, serves as President at Avis Budget Group, Inc. since June 12, 2020. He has been President & Chief Executive Officer at Budget Rent A Car System, Inc. since June 20...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD4.92M) is about average for companies of similar size in the US market ($USD6.44M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Experienced Management: CAR's management team is considered experienced (2.2 years average tenure).
Experienced Board: CAR's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Avis Budget Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Avis Budget Group, Inc.
- Ticker: CAR
- Exchange: NasdaqGS
- Founded: 1946
- Industry: Trucking
- Sector: Transportation
- Market Cap: US$6.343b
- Shares outstanding: 66.54m
- Website: https://www.avisbudgetgroup.com
Number of Employees
- Avis Budget Group, Inc.
- 6 Sylvan Way
- New Jersey
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:06|
|End of Day Share Price||2021/09/17 00:00|
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.