REA Group Limited

REA.AX

Internet Content & Information · Communication Services

Price

A$176.07

-2.67 (-1.49%)

Market Cap

A$23.04B

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

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

How the score breaks down

Quality

Exceptional

Growth

Weak

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

REA Group runs realestate.com.au, Australia's most visited property website. It connects people who want to buy, sell, or rent homes with real estate agents and property developers. The company also operates property sites in India and has a stake in Move, Inc., which runs realtor.com in the United States.

REA Group makes most of its money by charging real estate agents and developers fees to list properties on its platforms. It operates primarily in Australia, where it holds a dominant market position that is difficult for competitors to challenge due to its network effect — more listings attract more buyers, which attracts more agents. The company's key growth driver is expanding its financial services business, including home loans, while a main risk is that a slowdown in Australian housing market activity directly reduces the number of listings and the fees agents are willing to pay.

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

+2.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-8.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

A$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

62.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$1.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth context

REA Group Limited is growing revenue at 2% 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.

Share count broadly stable

−0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 132.1M (2022) → 131.9M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

52.2%

Healthy — 52.2% gross margin

Profit after running costs

Operating Margin

49.8%

Excellent — 49.8% operating margin

Return on the money invested

ROCE

49.5%

Exceptional — 49.5% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+4.2%

Slow sales growth (+4.2% YoY)

Profit growth

EPS YoY

-18.3%

Earnings shrinking (-18.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

140%

Turns 140% of profit into real cash

Spare cash per sale

FCF Margin

38.7%

Converts sales into free cash efficiently (38.7%)

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

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

119.29x

Comfortably covers interest (119.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

42.0x

Pricey — P/E 42.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+15.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (42.0 → 26.7)

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Dividends

Dividend

Dividend Yield

1.52%

Small dividend — 1.52% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+41.9%

Dividend growing fast (41.9% YoY)

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