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CAR - CAR Group

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At (1) price didn't go higher but fell with the market.
At (2) price didn't go higher but fell with the market.

Now (3) the market is drifting down, but CAR is going sideways. A bit of bullish relative strength hey?

 
Almost two years since the last post on CAR. I think that this company may be worth monitoring as an eye on the post COVID recovery. In NSW people are being urged to drive rather than crowd public transport. Some may think twice about squeezing next to others in public transport with out persuasion.
 

@peter2, nice summation & it's apparent the chart confirm your view. It's also refreshing when you post snappy reviews of companies worthy of a second look.



Skate.
 
peter2 said:
Almost two years since the last post on CAR. I think that this company may be worth monitoring as an eye on the post COVID recovery..
Click to expand...

And another two years (and a bit). In fact, type in CAR and even with Search Title Only, it didn't come up until the second page. That's the challenge with an ASX code that is a word. HAS, BUY, there are a few. Worst one, doubly so with the filters on the 'net, was S E X. So wrong.

That aside, car prices are crazy. Second hand vehicles, for some models, are trading for the price of new ones, if those are even available. Covid certainly saw a recovery to the CAR price; the initial drop below $10 with a climb to $26 in late 2021. Apart from the 2020 blip, earnings have grown and there has been a steadily increasing dividend for the last 10 years.

carsales to acquire remaining 51% of Trader Interactive, a leading US digital marketplace business, and launch a AUD$1.207bn equity raising .

A strategic acquisition, Trader Interactive is an integrated platform of branded marketplaces in the US, providing digital marketing solutions and services across commercial truck, RV, powersports, and equipment industries. (collectively, termed non-automotive), so it's not really just a online automotive, motorcycle and marine classifieds business any more.

Funding is through a 1 for 4.16 pro-rata entitlement offer at at AUD$17.75 per share , and upsizing a debt facility.


Earnings per share ............ ................................ .................................. ...... Return on Equity ............. .........
 
Carsales.com is looking for half a billion dollars in a new capital raising to finance its decision to boost its stake in Brazil’s biggest online car sales market.

Shares were halted on Wednesday for a cap raising via a fully underwritten 1 for 14.01 pro-rata accelerated renounceable entitlement offer (with retail rights trading) at $19.95 a share. That was a 11.9% discount to the last sale on Tuesday of $22.64.

According to Wednesday’s release, the company has signed an agreement with Brazil’s Banco Santander to acquire an additional 40% of Webmotors for approximately $A353 million and take its stake to 70%. Webmotors is the number one automotive digital marketplace in Brazil.

 
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I’m in but my allotment will only be 42 shares
 
You'd have to think today's price action is an endorsement of the deal,


Now all that's left is the retail take up .... And likely to be strong. CAR now above where it closed before the deal.

 
Wonder if MIR took up some. As at 31 December 2022, it held 826,000 shares.
 
Belli said:
Wonder if MIR took up some. As at 31 December 2022, it held 826,000 shares.
Click to expand...
At end Feb, it was their #4 holding. Total amount $18.7million and 3.6% of MIR portfolio.

So, it would cost them a bit under 2 mill
 
I'm only going to post my analysis, primarily if I see a Dud Stock, and, secondly only if someone requests my thoughts on a stock.....
CAR is a problem IMO...... There is nothing their current Financials or Technicals that justifies the current $27.59 SP....
So, IMO anything above $23.51 is just Broker/Analyst Hype & Fodder for the Sheep....


DYOR.....
Cheers...
DrB.
 
On November 3rd, 2023, Carsales.com Limited changed its name to CAR Group Limited.
 
Chart wise, looking forward, I see no reason why 2024 shouldn't be a good year for CAR...
Trading, not investing..
 

Attachments

  • CAR 2024-02-25 .jpg
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Market Matters today:

Does MM see opportunities in the digital marketplace stocks?​

The three leading digital marketplace stocks are highly correlated to the tech sector, although they reside in the media and entertainment sectors of the ASX. While they haven’t kept pace with their better-known peers, CAR Group, REA Group, and SEEK have delivered an average return of +15% in 2024. However, SEK has actually fallen within the three companies, which is an excellent example of how identifying a bullish sector/theme is only half the battle!
  • We like the three businesses per se, but the macro backdrop is in part influencing their performance.

CAR Group (CAR) $38.47​

We exited CAR on valuation grounds, a dangerous pastime in 2024. Even after retreating 10%, it’s trading well above its average multiple of the last five years, closer to 30.9x, making the risk/reward unattractive to MM around current levels.


CAR Group (CAR) valuation over the past 5 years – source Bloomberg
LAST UPDATED 13/12/2024 08:49

Digital auto marketplace CAR has rallied over 23% in 2024, and the company is on track to deliver excellent growth given how well the international businesses are evolving. This is a great combination with the Australian business, which delivered 12% YoY top line revenue growth in 2H24, making it a stock we would like to own but at the right price.
  • We can see CAR falling back towards the $33-35 area if/when we see some valuation contraction across the ASX, i.e. a further +10% pullback.
Not Held
 
CAR Group announces exit of its Tyres business and Group outlook reiterated on a proforma basis​

CAR Group Limited (ASX:CAR) advises that following a strategic review, it has decided to exit its Australian Tyres business unit which comprises both the wholesale division tyreconnect and the e-commerce platform tyresales.com.au. This decision follows continued diiculty in achieving sustainable profitability in what is a highly competitive tyre retail and wholesale market.

CAR Group has reached an agreement to sell certain assets of tyreconnect to a third party with the sale expected to be completed at the end of February. The transaction is not material to CAR Group. The tyresales.com.au platform will be closed eective 14 January 2025.

FY25 Group Outlook
Due to the closure of the Tyres business unit, the Group outlook is now provided on a proforma basis excluding the Tyres business. We expect to deliver good growth in Proforma Revenue, Proforma EBITDA and Adjusted NPAT on a constant currency basis. We also expect to see similar Group Proforma EBITDA margins in FY25 versus FY24.

$37.50
 
  • CAR Group Cut to Underweight at Jarden Securities; PT A$34.50
Not Held
 
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