CAR Group Limited

CAR.AX

Internet Content & Information · Communication Services

Price

A$28.74

+0.28 (+0.98%)

Market Cap

A$10.89B

Exchange

Australian Securities Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Good

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

Dividends

Strong

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Share count rising — dilution

+32.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 285.2M (2022) → 378.7M (2026)

Winston Score History

The full picture

CAR Group Limited runs online marketplaces where people buy and sell cars. Its main platform in Australia is Carsales.com.au, one of the most visited automotive websites in the country. The company also owns car-selling websites in South Korea, Brazil, Chile, Argentina, and the United States, making it a global operator in the online auto classifieds industry.

The company makes money by charging car dealers and private sellers fees to list vehicles on its platforms, along with selling advertising space to automakers and finance providers. It operates across Australia, Asia, and the Americas, and its high gross margin of around 72% reflects the low cost of running a digital marketplace once it is built. The main growth driver is expanding its international platforms, particularly its stake in the U.S.-based Trader Interactive business, but the key risk is that car dealers could face pressure if new car sales slow, which would reduce their spending on listings.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+12.5% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

A$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

6.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$390M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

CAR Group Limited is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

72.3%

Premium pricing power — 72.3% gross margin

Profit after running costs

Operating Margin

39.6%

Excellent — 39.6% operating margin

Return on the money invested

ROCE

11.3%

Below par — 11.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+5.9%

Slow sales growth (+5.9% YoY)

Profit growth

EPS YoY

+13.7%

Earnings growing (+13.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

163%

Turns 163% of profit into real cash

Spare cash per sale

FCF Margin

39.8%

Converts sales into free cash efficiently (39.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.56

Conservative — low debt load (0.56)

Covers its interest

Interest Cover

6.11x

Adequate interest coverage (6.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

34.6x

Pricey — P/E 34.6

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+15.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (34.6 → 19.4)

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Dividends

Dividend

Dividend Yield

3.23%

Moderate income — 3.23% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+34.2%

Dividend growing fast (34.2% YoY)

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