Auto Trader Group AUTO.L
Auto Trader Group is a digital marketplace for vehicle buying and selling in the UK, generating revenue primarily from subscriptions and advertising from dealers and advertisers. Auto Trader Group shows solid financial health (ND/EBITDA 0.48) and exceptional quality (ROE 60.20%, operating margin 62.17%), with an attractive valuation (P/E 13.41). However, growth is moderate (revenue +2.70%) and momentum is very negative (-32.48% over 12 months), suggesting caution.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Auto Trader Group is a digital marketplace for vehicle buying and selling in the UK, generating revenue primarily from subscriptions and advertising from dealers and advertisers. Auto Trader Group shows solid financial health (ND/EBITDA 0.48) and exceptional quality (ROE 60.20%, operating margin 62.17%), with an attractive valuation (P/E 13.41). However, growth is moderate (revenue +2.70%) and momentum is very negative (-32.48% over 12 months), suggesting caution.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.5 |
| Quality / Moat | 9.2 |
| Valuation | 7.4 |
| Growth | 4.9 |
| Dividend | 4.5 |
| Momentum | 2.1 |
| Risk & Context | 7.9 |
OVERALL SCORE: 7.0/10
Context and risks
The macro context of rising interest rates in the US does not materially affect Auto Trader, whose business is domestic in the UK and has a very low net debt/EBITDA of 0.48. The UK regulatory risk is moderate and already reflected in the base risk.
News considered in the analysis
- Auto Trader Group (LSE:AUTO) Stock Gets Fair Value Trim As Analysts Split On Valuation — Recorte de valor razonable por parte de analistas, refleja una revisión a la baja de supuestos, aunque con división de opiniones.
- AUTOTRADER GRP (ATDRY) Moves to Buy: Rationale Behind the Upgrade — Upgrade de Zacks a 'Buy' basado en fundamentales sólidos y valoración atractiva, señal positiva moderada.
- How The Investment Story For Auto Trader Group (LSE:AUTO) Is Being Rewritten By New Assumptions — Artículo que sugiere que el mercado está revisando sus supuestos de crecimiento, posible presión sobre la valoración.
- AUTOTRADER GRP (ATDRY) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now — Artículo de Zacks que sugiere que la acción podría estar cerca de un suelo, con argumentos de valoración y fundamentales.
- MARKETS LIVE: Wall Street ends lower as yields hit 2007 high — Titular de mercado general, sin impacto específico en Auto Trader.
Verdict: Hold, with a potential entry at lower levels if momentum improves.
Main risk: The main risk is the slowdown in revenue growth in a potentially saturated UK used car market, which may not justify the current valuation despite strong quality metrics.
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