Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers.
Undervalued with acceptable 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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CAR underperformed the US Transportation industry which returned -19.5% over the past year.
Return vs Market: CAR underperformed the US Market which returned -11.9% over the past year.
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
6 days ago | Simply Wall StShould You Be Concerned About Avis Budget Group, Inc.'s (NASDAQ:CAR) Historical Volatility?
3 weeks ago | Simply Wall StDid Changing Sentiment Drive Avis Budget Group's (NASDAQ:CAR) Share Price Down A Worrying 59%?
1 month ago | Simply Wall StResults: Avis Budget Group, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Is Avis Budget Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAR ($14.65) is trading below our estimate of fair value ($56.21)
Significantly Below Fair Value: CAR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CAR is good value based on its PE Ratio (3.6x) compared to the Transportation industry average (17.7x).
PE vs Market: CAR is good value based on its PE Ratio (3.6x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: CAR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CAR is good value based on its PB Ratio (1.7x) compared to the US Transportation industry average (1.8x).
How is Avis Budget Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAR's earnings are forecast to decline over the next 3 years (-2.3% per year).
Earnings vs Market: CAR's earnings are forecast to decline over the next 3 years (-2.3% per year).
High Growth Earnings: CAR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CAR's revenue (0.4% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: CAR's revenue (0.4% 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 (48.7%).
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 $102.0M impacting its December 31 2019 financial results.
Growing Profit Margin: CAR's current net profit margins (3.3%) are higher than last year (1.8%).
Past Earnings Growth Analysis
Earnings Trend: CAR's earnings have declined by -1.9% per year over the past 5 years.
Accelerating Growth: CAR's earnings growth over the past year (83%) exceeds its 5-year average (-1.9% per year).
Earnings vs Industry: CAR earnings growth over the past year (83%) exceeded the Transportation industry -12.4%.
Return on Equity
High ROE: Whilst CAR's Return on Equity (46.04%) 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 ($2.4B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: CAR's short term assets ($2.4B) do not cover its long term liabilities ($20.1B).
Debt to Equity History and Analysis
Debt Level: CAR's debt to equity ratio (2215.1%) is considered high.
Reducing Debt: CAR's debt to equity ratio has increased from 1722.8% to 2215.1% over the past 5 years.
Debt Coverage: CAR's debt is not well covered by operating cash flow (17.8%).
Interest Coverage: CAR's interest payments on its debt are not well covered by EBIT (1.7x coverage).
Inventory Level: CAR has a low level of unsold assets or inventory.
Debt Coverage by Assets: CAR's debt is not covered by short term assets (assets are 0.2x debt).
What is Avis Budget Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CAR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CAR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CAR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Ferraro (62yo)
Mr. Joseph A. Ferraro, also known as Joe, has been Interim Chief Executive Officer at Budget Rent A Car System, Inc. since 2020. Mr. Ferraro has been Interim Chief Executive Officer and Interim President a ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD2.81M) is about average for companies of similar size in the US market ($USD3.18M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
|Interim President & CEO||0.17yr||US$2.81m||0.14% $1.5m|
|Executive VP & Chief Financial Officer||1yr||no data||no data|
|VP & Chief Accounting Officer||0.58yr||no data||0.00038% $4.1k|
|Treasurer & Senior VP of Corporate Finance||1.17yrs||no data||0.015% $161.9k|
|Chief Information Officer & Executive VP||no data||no data||no data|
|Senior VP||no data||no data||no data|
|Head of Marketing||1.58yrs||no data||no data|
|Chief Human Resource Officer & Executive VP||7yrs||no data||0.063% $686.2k|
|Interim President of Americas||9.33yrs||no data||0.0069% $75.1k|
|Managing Director of Northern Region||4.83yrs||no data||no data|
Experienced Management: CAR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
|Independent Director||13.58yrs||US$237.42k||0.048% $523.2k|
|Independent Director||6.67yrs||US$229.36k||0.027% $293.0k|
|Independent Director||13yrs||US$240.81k||0.012% $133.3k|
|Independent Director||22.25yrs||US$332.76k||0.012% $134.5k|
|Independent Director||13.42yrs||US$243.17k||0.0029% $31.4k|
|Independent Chairman of the Board||0.083yr||no data||0.58% $6.3m|
|Independent Director||1.83yrs||US$150.85k||no data|
|Independent Director||4.17yrs||no data||no data|
|Independent Director||1.83yrs||US$142.42k||no data|
|Independent Director||4yrs||US$218.76k||no data|
Experienced Board: CAR's board of directors are considered experienced (5.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAR 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$1.089b
- Shares outstanding: 74.36m
- Website: https://www.avisbudgetgroup.com
Number of Employees
- Avis Budget Group, Inc.
- 6 Sylvan Way
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CUCA||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Sep 1983|
|CAR||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Sep 1983|
|CAR *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Sep 1983|
|0HK4||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Sep 1983|
|CUCA||BRSE (Berne Stock Exchange)||Yes||Common Shares||CH||CHF||Sep 1983|
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 that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget Truck brand, a local and one-way truck rental businesses with a fleet of approximately 20,000 vehicles, which are rented through a network of approximately 575 dealer-operated and 420 company-operated locations that serve the consumer and light commercial sectors in the continental United States; and the Zipcar brand, a car sharing network. The company also operates various other car rental brands, such as Payless, Apex, Maggiore, Morini Rent, FranceCars, and Turiscar. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, and cargo insurance products; fuel service options, chauffeur drive services, roadside assistance services, electronic toll collection services, curbside delivery, tablet rentals, access to satellite radio, portable navigation units, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Business Intelligence solution, an online portal for corporate travel. Avis Budget Group, Inc. operates in approximately 5,500 locations worldwide. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 03:05|
|End of Day Share Price||2020/03/27 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.