Car sales . com
22/07/26
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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]
Over the last 10 years, the P/E ratio for CAR Group Limited (formerly Carsales, ASX: CAR) has averaged roughly 32x. Historically, its valuation has fluctuated between a low of about 13x (during the 2023 financial period) and a peak of over 53x (in 2024–2025). [1, 2, 3]
A breakdown of CAR's P/E multiple fluctuations reveals these key trends over the past decade:
- Long-Term Average: ~ 31.98 x
- Low Point: ~ 13.1x (Recorded in 2023, reflecting a period of compressed earnings or sharp share price drops).
- High Point: ~ 53.8x (Recorded over 2024 and 2025 as the company expanded globally and investor sentiment grew).
- Current Levels: Currently, the trailing P/E sits near 33x, and its Forward P/E is trading closer to 22x, indicating that analysts expect higher future earnings to normalize the premium multiple
Is it under threat from AI and Facebook marketplace?
Dividends are great up to now and rising every year. Only partly franked.
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