Carsales.com Ltd (CAR) owns and operates a portfolio of automotive and related industry websites, including buying and selling cars, motorcycles, trucks, caravans and boats.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
|
9.51 – 22.99 |
939,449 | 5,513.90 | 3.0% | 86.3% | 19.93 | 2.02 | 12/02/2021 |
Carsales.com Ltd (CAR) owns and operates a portfolio of automotive and related industry websites, including buying and selling cars, motorcycles, trucks, caravans and boats. Carsales.com leverages technology and advertising to bring together consumers, dealers, manufacturers and advertisers primarily across the Asia Pacific region with additional interests in Brazil, South Korea, Malaysia, Indonesia and Thailand.
Revenue is generated through two primary channels, 1) online advertising which matches buyers and sellers across dealers and private users and media advertising, and 2) data, research and services including RedBook data, the online source of vehicle specifications, valuation and pricing data. During the COVID-19 pandemic the company has benefited from the tailwinds of increased demand for private transport over public and changing consumer behavior towards online purchases. Additionally, government incentives such as an instant tax write-off program up to $150k has stimulated demand for cars within the commercial sector.
Revenue is primarily derived from online advertising, which totaled 69% of sales in 2020, down slightly from 72% in 2019. Sales from Asia rose from 16% to 19%, with increasing growth and traffic in South Korea, Data & Research comprised 10% of sales and Latin America totaled 2%. Revenue is forecast to rise further in the 2021 financial year by 11.1% to $439.33m and a further 11% in 2021 to $487.87. Earnings per share is forecast to rise 2.3% in 2021 to $0.576 and 14.9% in 2022 to $0.662 which would see the stock trade on forward P/E multiples of 38.9 and 33.8 respectively. Estimates are compiled from Bloomberg analyst data with the company not providing specific guidance on financial expectations for 2021 due to the uncertainty around COVID-19.
The share price rallied to a new all-time high in October of $22.99 due to the company’s strong performance in the face of the COVID-19 pandemic and its unique dominance as the premier online retailer for used cars within Australia.
The average target price of analysts covering the stock is $19.93 with 20% of analysts rating the stock as a buy, compared to 27% as a sell and 53% as a hold.
