CAR

 Car sales . com

03/07/26

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ASX: CAR (CAR Group, formerly Carsales) has delivered solid 5-year revenue growth but has seen volatile net profits and fluctuating Returns on Equity (ROE) due to heavy international acquisitions. The company carries a substantial debt load but remains highly profitable with excellent cash conversion. [1, 2, 3, 4, 5]

Financial Highlights over the last 5 years

Metric [1, 2, 3, 4, 5, 6, 7, 8, 10]	Recent Data (FY2025 / TTM)	5-Year Trend & Context
Revenue	A$1.23 billion	Strong upward trend. Revenue has grown by roughly 20% to 30% over the last 3 years, driven by domestic dominance and US/LatAm expansions.
Net Profit	A$295 million	Volatile. Accounting profits fluctuated significantly (peaking in 2023 with non-operating gains before normalizing), but underlying operating profits continue to climb.
Debt	~A$1.41 billion	The debt/equity ratio sits at roughly 0.51. Debt increased significantly over the 5-year period due to funding international acquisitions.
ROE (Return on Equity)	~10.0%	Highly volatile over the last 5 years (peaked at 31.6% in 2023, dropped to 8.4% in 2024, and averaged ~16% mid-cycle). The recent dilution is normal during intensive international scaling phases.
Operating Margin	~53% - 55%	Consistently exceptional. Their asset-light digital marketplace commands operating margins well above sector medians.

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Tracked Market Performance

Over the last 5 years, the stock has experienced significant growth combined with recent valuation volatility. Trading near A$25.50, the company trades at a Price-to-Earnings (P/E) multiple of approximately 33 and offers a dividend yield of roughly 3.3%. [1, 2]

Is it under threat from AI and Facebook marketplace?

Dividends are great up to now and rising every year.

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