CAR 0.43% $35.05 car group limited

I'm not going to argue about valuation as the market often...

  1. 3,460 Posts.
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    I'm not going to argue about valuation as the market often overvalues or undervalues companies for long periods of time, but I will point out that EPS in 2017 was 46cps and the latest half yearly report for H1FY24 posted half yearly EPS of 43cps so the EPS has almost doubled since what you called their "heydays" in 2017....
    CAR is growing successfully internationally into Korea, USA, Brazil, India etc so it's not the Australian business that it used to be 10 years ago.
    Obviously there is execution risk when expanding internationally, but the rewards can be much greater, their business is very capital light, and so far so good.
    Compared with H1FY2023, 133% growth in USA revenues, 18% in Asia, and massive growth in Latin America ( but from a small base ), on top of 13% growth in Australia, with the outlook statement forecasting strong growth in earnings across all regions.
    I don't pay a lot of attention to analyst forecasts as they are often wrong, but Goldman Sachs is predicting 14+% EPS CAGR to 2026.
    A pullback in share price would provide a great entry point or top up opportunity. I've learnt many times over the years not to sell growth companies in the expectation of pullbacks as trying to time exit and rentry points is almost impossible. I made that mistake many years ago selling REA as it looked ridiculously expensive.
    with forecast FY25 EPS of $1.06 ( which might be an underestimate ), it would put CAR on a prospective PE of 32 at current $34 share price.
    compare that PE to other growth stocks on the market and it doesn't look anywhere near as expensive
    Last edited by woollydog: 12/04/24
 
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$35.05
Change
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Mkt cap ! $13.21B
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$35.02 $35.45 $34.95 $14.28M 406.9K

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1 2338 $35.04
 

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Price($) Vol. No.
$35.06 1508 2
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Last trade - 16.10pm 13/05/2024 (20 minute delay) ?
Last
$35.04
  Change
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$34.96 $35.44 $34.96 36152
Last updated 15.59pm 13/05/2024 ?
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