# Auto Trader Group plc (AUTO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 517p, market value 4.0 billionp.

## Valuation
- **P/E (trailing): 15.2×** (5-yr avg 2220.5×, 3-yr avg 2068.7×). Auto Trader Group plc trades at 15.2× trailing earnings, well below its own five-year average of 2220.5×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 11.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.89**. A PEG of 1.89 is in the range usually read as fairly priced for its growth.
- **Price / sales: 3.3×**. Each dollar of revenue is priced at 3.3×.
- **Price / book: 10.4×**. The shares trade at 10.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 5.2×**. Enterprise value is 5.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 15.0%** (5-yr avg 0.1%). Free cash flow equals 15.0% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.6%**. The inverse of the P/E: 6.6% of the price is earned each year.

## Profitability
- **Gross margin: 75.5%**. Auto Trader Group plc keeps 75.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 62.2%**. 62.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 47.1%**. 47.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 72.2%**. A 72.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 96.5%**. Return on all capital, debt included, is 96.5%: comfortably above what that capital costs.
- **Return on assets: 84.1%**. Each dollar of assets produces 84.1% of profit.

## Growth
- **Revenue growth (1 yr): 3.9%** (3-yr 7.7%/yr, 5-yr 18.9%/yr). Revenue grew 3.9% over the last year, against 18.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 6.3%** (3-yr 10.8%/yr, 5-yr 21.2%/yr). Earnings per share rose 6.3%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 4.3%/yr**. Free cash flow has compounded at 4.3% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.51**. Debt is 0.51 times equity, moderate leverage.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 105.8×**. Operating profit covers interest 105.8× over, a safe margin.
- **Current ratio: 1.73** (quick 1.66). Current assets cover the next year's liabilities 1.73 times.
- **Altman Z-score: 12.17**. A Z-score of 12.17 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.30%** (0p per share, trailing). Auto Trader Group plc yields 2.30%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 32%** (30% of free cash flow). 32% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 34.6%/yr** (1-yr 10.4%). The dividend has compounded at 34.6% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 16.1%**. Dividends plus net buybacks return 16.1% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (18 analysts). 18 analysts cover Auto Trader Group plc; the consensus is hold, with an average price target of 562p (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -37.7%** (YTD -14.6%, 3-mo 6.4%). The shares are down 37.7% over twelve months including dividends.
- **From 52-week high: -37.6%** (23.5% above the low). Trading 38% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 0.57** (volatility 29%). Beta of 0.57 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AUTO.L · Page: https://foliofundamentals.com/stocks/auto.l

Not investment advice.