Auto Trader Group plc
Auto Trader Group plc Fundamental Analysis
Auto Trader Group plc (ATDRF) shows strong financial fundamentals with a PE ratio of 13.73, profit margin of 47.69%, and ROE of 51.86%. The company generates $0.6B in annual revenue with strong year-over-year growth of 14.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ATDRF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentATDRF demonstrates superior asset utilization.
Valuation Score
ModerateATDRF shows balanced valuation metrics.
Growth Score
ExcellentATDRF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentATDRF maintains a strong and stable balance sheet.
Profitability Score
ExcellentATDRF achieves industry-leading margins.
Key Financial Metrics
Is ATDRF Expensive or Cheap?
P/E Ratio
ATDRF trades at 13.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ATDRF's PEG of 5.95 indicates potential overvaluation.
Price to Book
The market values Auto Trader Group plc at 7.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.46 times EBITDA. This is generally considered low.
How Well Does ATDRF Make Money?
Net Profit Margin
For every $100 in sales, Auto Trader Group plc keeps $47.69 as profit after all expenses.
Operating Margin
Core operations generate 62.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $51.86 in profit for every $100 of shareholder equity.
ROA
Auto Trader Group plc generates $42.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Auto Trader Group plc generates strong operating cash flow of $305.59M, reflecting robust business health.
Free Cash Flow
Auto Trader Group plc generates strong free cash flow of $291.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
ATDRF converts 7.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.52
vs 25 benchmark
ROA
Return on assets percentage
0.42
vs 25 benchmark
ROCE
Return on capital employed
0.61
vs 25 benchmark
How ATDRF Stacks Against Its Sector Peers
| Metric | ATDRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.73 | 22.05 | Better (Cheaper) |
| ROE | 51.86% | 1173.00% | Weak |
| Net Margin | 47.69% | -64583.00% (disorted) | Strong |
| Debt/Equity | 0.10 | 1.36 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 1.58 | Neutral |
| ROA | 42.13% | -200331.00% (disorted) | Strong |
ATDRF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Auto Trader Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
65.87%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
34.06%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
37.13%
Industry Style: Growth, Technology, Streaming
High Growth