Stock of the day
CAR Group's recent earnings report reveals substantial profit and revenue growth, highlighting the company's effective debt management.
(AI video summary)
This video was created on 9 February 2026 for IG audiences by ausbiz.
CAR Group has faced a 30% decline over the past year, but its latest half-year results indicate growth in revenue and earnings across key markets. The company reported a 16% increase in net profit to $143 million and an 8% rise in revenue to nearly $626 million. Investors will receive an interim dividend of 42.5 cents per share, up 10% from the prior year.
CAR Group maintains a full-year outlook for 12% to 14% pro forma revenue growth, with Citi rating it a 'buy' and RBC Capital also affirming positive expectations.
CAR Group is positioned among the top three 'old techs' in the Australian market, along with Seek and REA Group. While the economic cycle challenges the sector, CAR Group has fared better than its peers, demonstrating resilience. However, competitive pressures remain, with emerging technology and market dynamics impacting valuations.
Market watchers are monitoring the macroeconomic environment and growth prospects closely, considering CAR Group a high-quality enterprise but adopting a cautious approach given current multiples.
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