Is CAR Groups 10% Jump a Sign Investors Are Turning Bullish Again?
Source: Kapitales Research
Highlights:
Shares jumped 10.17% to $26.97 at the time of writing.
FY2026 guidance maintained with double-digit growth targets.
Interim dividend lifted 10% to 42.5 cents per share.
CAR Group Ltd (ASX: CAR) surged in Monday’s trading after unveiling its FY2026 half-year results, with the stock rising 10.17% to $26.97 at the time of writing. The rally helped the company recover part of the losses seen earlier in the year, although the shares remain roughly 12% lower year to date.
Guidance unchanged after steady first half
The online automotive marketplace operator reported a solid set of results and kept its full-year outlook intact. Management is still aiming for proforma revenue to increase by 12% to 14% and proforma EBITDA to rise between 10% and 13% in constant currency for FY2026. The company reported double-digit gains across its main performance indicators in the first half, backed by steady margins and robust cash generation. Earnings were driven by multiple regions, with Australia providing a consistent base while international businesses continued expanding. Keeping its outlook unchanged suggests management sees trading conditions tracking as expected for the second half, with no significant changes in demand or cost pressures noted.
Global operations drive earnings momentum
CAR Group’s geographic diversity continues to underpin its growth profile. Australia remains a core earnings contributor, supported by its strong market position across automotive listings. In North America, the company reported solid growth, with premium products gaining traction at its Trader Interactive platform. Latin America recorded some of the fastest growth, driven by an expanding dealer network and increased finance income. Asia also posted double-digit growth, driven by wider adoption of its products and stronger returns.
Strong cash flow supports higher dividend
The company announced an interim dividend of 42.5 cents per share, representing a 10% increase on the same period last year and 30% franked. CAR Group converted 95% of its EBITDA into operating cash flow, reflecting the resilience of its underlying business.
Market reaction
Despite the year-to-date decline, the latest rally suggests some investors are reassessing the stock following the half-year update and steady guidance.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Is CAR Groups 10% Jump a Sign Investors Are Turning Bullish Again?
Highlights:
CAR Group Ltd (ASX: CAR) surged in Monday’s trading after unveiling its FY2026 half-year results, with the stock rising 10.17% to $26.97 at the time of writing. The rally helped the company recover part of the losses seen earlier in the year, although the shares remain roughly 12% lower year to date.
Guidance unchanged after steady first half
The online automotive marketplace operator reported a solid set of results and kept its full-year outlook intact. Management is still aiming for proforma revenue to increase by 12% to 14% and proforma EBITDA to rise between 10% and 13% in constant currency for FY2026. The company reported double-digit gains across its main performance indicators in the first half, backed by steady margins and robust cash generation. Earnings were driven by multiple regions, with Australia providing a consistent base while international businesses continued expanding. Keeping its outlook unchanged suggests management sees trading conditions tracking as expected for the second half, with no significant changes in demand or cost pressures noted.
Global operations drive earnings momentum
CAR Group’s geographic diversity continues to underpin its growth profile. Australia remains a core earnings contributor, supported by its strong market position across automotive listings. In North America, the company reported solid growth, with premium products gaining traction at its Trader Interactive platform. Latin America recorded some of the fastest growth, driven by an expanding dealer network and increased finance income. Asia also posted double-digit growth, driven by wider adoption of its products and stronger returns.
Strong cash flow supports higher dividend
The company announced an interim dividend of 42.5 cents per share, representing a 10% increase on the same period last year and 30% franked. CAR Group converted 95% of its EBITDA into operating cash flow, reflecting the resilience of its underlying business.
Market reaction
Despite the year-to-date decline, the latest rally suggests some investors are reassessing the stock following the half-year update and steady guidance.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au