Download PDF

1. Company Snapshot

1.a. Company Description

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland.The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies.It offers its products to retailers, home traders, and logistics firms.


Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.

Show Full description

1.b. Last Insights on AUTO

Auto Trader Group's recent performance was impacted by concerns over its underlying earnings growth, which hasn't kept pace with its five-year total shareholder returns. The company's COO, Catherine Faiers, is set to leave for Moonpig, potentially disrupting operations. Despite a record FTSE 100 peak, the market's overall positive sentiment didn't translate to Auto Trader's stock. The company's recent earnings call highlighted robust revenue growth, but navigating consumer services challenges remains a concern.

1.c. Company Highlights

2. Auto Trader's H1 Results: A Strong Performance

Auto Trader reported a 5% increase in group revenue, a 6% increase in operating profit, and an 11% increase in basic EPS to 0.1721, beating analyst estimates of 0.1692. The company's core Auto Trader revenue rose 5%, driven by a 6% increase in retailer revenue. The average revenue per retailer was up 5% to £2,994, mainly due to the product and pricing event. The company's financial performance was robust, with a return on equity (ROE) of 49.37% and a return on invested capital (ROIC) of 48.18%.

Publication Date: Nov -16

📋 Highlights
  • Revenue & Profit Growth:: Group revenue rose 5% to £21.4M, with operating profit up 6%, and basic EPS increased 11% year-on-year.
  • Deal Builder Expansion:: Retailer adoption accelerated 4x YoY, with 160,000 live adverts by October 2025, a 25% increase from September.
  • Co-Driver AI Adoption:: Over 10,000 retailers using Co-Driver tools, driven by the company’s real-time data and brand strength.
  • Shareholder Returns:: £162.2M returned via buybacks and dividends, including a 3.8p interim dividend per share.
  • Autorama Turnaround:: Segment operating loss reduced to £1.4M (vs. prior year), with vehicle/accessory sales up 20% in October 2025.

Revenue Growth Drivers

The company's revenue growth was driven by its strong market position, with record levels of buyers and retailers using Auto Trader. The annual product and pricing event in April went well, with the first features under the Co-Driver AI umbrella seeing strong engagement. Over 10,000 retailers are using the tools, and the company is uniquely placed to make AI-powered solutions available due to its strong brand, deep integrations, and real-time proprietary data.

Deal Builder and Buying Signals

Deal Builder has seen dramatically accelerated adoption, with the company adding 4x as many retailers as in the previous 6 months. The company plans to monetize Deal Builder and Buying Signals as part of a package for retailers, likely starting from April next year. The products will be bundled with no tiering, and the company believes they will become a key part of how Auto Trader works for retailers. As Jamie Warner noted, "the assumption is that the speed of sale will stabilize, and they are not expecting it to accelerate in the second half."

Valuation Metrics

Auto Trader's valuation metrics suggest that the market has high expectations for the company's growth prospects. The stock trades at a P/E Ratio of 21.72, P/B Ratio of 10.78, and EV/EBITDA of 15.04. The Dividend Yield is 1.53%, and the Free Cash Flow Yield is 5.12%. These metrics indicate that the market is pricing in a high level of growth and profitability for the company.

Outlook

The company is confident in its ability to stay ahead of technological changes and maintain its market position. The outlook for the remainder of the financial year 2026 remains the same as previously stated. Investment requirements for the next 12 to 24 months are expected to be consistent with previous years, with no change in guidance on margin perspective. Analysts estimate next year's revenue growth at 4.6%, indicating a continued strong performance.

3. NewsRoom

Card image cap

Auto Trader Group's (LON:AUTO) five-year total shareholder returns outpace the underlying earnings growth

Nov -21

Source:

Card image cap

FTSE 100 hits new high on electricity generator SSE spark and gold gains

Nov -12

Source:

Card image cap

Auto Trader Group PLC (ATDRF) (Half Year 2026) Earnings Call Highlights: Strong Revenue Growth ...

Nov -06

Source:

Card image cap

Is Auto Trader Group plc (LON:AUTO) Potentially Undervalued?

Nov -05

Source:

Card image cap

Catherine Faiers to take over as next chief of Moonpig

Oct -31

Source:

Card image cap

Estimating The Fair Value Of Auto Trader Group plc (LON:AUTO)

Sep -01

Source:

Card image cap

Auto Trader has been selling cars too quickly for its own good

Jul -23

Source:

Card image cap

Is Auto Trader Group plc's (LON:AUTO) Recent Performance Tethered To Its Attractive Financial Prospects?

Jul -20

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Auto Trader

Expected Growth: 6.0%

Auto Trader's 6.0% growth driven by increasing online car sales, rising demand for digital marketing solutions, and growing adoption of premium services among dealerships. Additionally, the company's strong brand presence, expanding product offerings, and strategic partnerships contribute to its growth momentum.

Autorama

Expected Growth: 6.0%

Autorama's 6.0% growth is driven by increasing online car sales, rising demand for used cars, and strategic partnerships with OEMs. Additionally, investments in digital marketing and customer experience enhancements have improved conversion rates and customer retention. Furthermore, Autorama's diversified revenue streams, including finance and insurance products, have contributed to its growth momentum.

7. Detailed Products

Auto Trader Website

A leading online marketplace for buying and selling new and used cars in the UK

Auto Trader Mobile App

A mobile application that allows users to search and compare cars on-the-go

Dealer Software Solutions

A suite of software solutions designed to help car dealerships manage their inventory, pricing, and online presence

Data and Insight Solutions

A range of data and insight products that provide market analysis and trends to the automotive industry

Advertising and Marketing Solutions

A range of advertising and marketing solutions designed to help dealerships and manufacturers reach their target audience

8. Auto Trader Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Auto Trader Group plc operates in a market with moderate threat of substitutes, as customers have limited alternatives to online car marketplaces.

Bargaining Power Of Customers

Auto Trader Group plc has a large customer base, but individual customers have limited bargaining power due to the company's dominant market position.

Bargaining Power Of Suppliers

Auto Trader Group plc has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The online car marketplace industry has high barriers to entry, making it difficult for new entrants to compete with established players like Auto Trader Group plc.

Intensity Of Rivalry

The online car marketplace industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.84%
Debt Cost 6.04%
Equity Weight 89.16%
Equity Cost 7.29%
WACC 7.16%
Leverage 12.16%

11. Quality Control: Auto Trader Group plc passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Telenor

A-Score: 6.9/10

Value: 4.8

Growth: 3.3

Quality: 5.7

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Rightmove

A-Score: 5.6/10

Value: 1.4

Growth: 6.0

Quality: 9.9

Yield: 2.5

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Auto Trader

A-Score: 5.1/10

Value: 1.4

Growth: 6.7

Quality: 9.6

Yield: 1.9

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Hemnet

A-Score: 4.0/10

Value: 0.7

Growth: 9.4

Quality: 9.0

Yield: 0.6

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Adevinta

A-Score: 3.4/10

Value: 3.9

Growth: 6.1

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.08$

Current Price

6.08$

Potential

-0.00%

Expected Cash-Flows