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Auto Trader Group

LSE:AUTO
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AUTO
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Media
Company description

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The last earnings update was 154 days ago. More info.


Add to Portfolio Compare Print
  • Auto Trader Group has significant price volatility in the past 3 months.
AUTO Share Price and Events
7 Day Returns
8.2%
LSE:AUTO
-2.4%
GB Interactive Media and Services
1.7%
GB Market
1 Year Returns
-23%
LSE:AUTO
-21.2%
GB Interactive Media and Services
-21.8%
GB Market
AUTO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Auto Trader Group (AUTO) 8.2% -11.3% -26.4% -23% 6.1% 53.8%
GB Interactive Media and Services -2.4% -16.2% -25.7% -21.2% -5.7% 12.1%
GB Market 1.7% -12% -25.3% -21.8% -22.8% -22.4%
1 Year Return vs Industry and Market
  • AUTO underperformed the Interactive Media and Services industry which returned -21.2% over the past year.
  • AUTO underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -21.8% over the past year.
Price Volatility
AUTO
Industry
5yr Volatility vs Market

Value

 Is Auto Trader Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Auto Trader Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Auto Trader Group.

LSE:AUTO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:AUTO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 19%) (8.36%))
1.078
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.078 * 6.07%)
7.07%

Discounted Cash Flow Calculation for LSE:AUTO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Auto Trader Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:AUTO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.07%)
2020 204.70 Analyst x9 191.17
2021 199.50 Analyst x9 174.01
2022 244.20 Analyst x8 198.93
2023 261.19 Est @ 6.96% 198.71
2024 274.33 Est @ 5.03% 194.92
2025 284.42 Est @ 3.68% 188.74
2026 292.20 Est @ 2.74% 181.10
2027 298.26 Est @ 2.07% 172.64
2028 303.07 Est @ 1.61% 163.83
2029 306.97 Est @ 1.29% 154.98
Present value of next 10 years cash flows £1,819.00
LSE:AUTO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £306.97 × (1 + 0.53%) ÷ (7.07% – 0.53%)
£4,716.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,716.00 ÷ (1 + 7.07%)10
£2,380.97
LSE:AUTO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,819.00 + £2,380.97
£4,199.97
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,199.97 / 964.38
£4.36
LSE:AUTO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.36
Current discount Discount to share price of £4.17
= -1 x (£4.17 - £4.36) / £4.36
4.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Auto Trader Group is available for.
Intrinsic value
4%
Share price is £4.17 vs Future cash flow value of £4.36
Current Discount Checks
For Auto Trader Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Auto Trader Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Auto Trader Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Auto Trader Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Auto Trader Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AUTO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.22
LSE:AUTO Share Price ** LSE (2020-04-08) in GBP £4.17
Europe Interactive Media and Services Industry PE Ratio Median Figure of 19 Publicly-Listed Interactive Media and Services Companies 25.48x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Auto Trader Group.

LSE:AUTO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AUTO Share Price ÷ EPS (both in GBP)

= 4.17 ÷ 0.22

18.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Auto Trader Group is good value based on earnings compared to the Europe Interactive Media and Services industry average.
  • Auto Trader Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Auto Trader Group's expected growth come at a high price?
Raw Data
LSE:AUTO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
4.6%per year
Europe Interactive Media and Services Industry PEG Ratio Median Figure of 12 Publicly-Listed Interactive Media and Services Companies 3.04x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 518 Publicly-Listed Companies 1.02x

*Line of best fit is calculated by linear regression .

LSE:AUTO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.64x ÷ 4.6%

4.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Auto Trader Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Auto Trader Group's assets?
Raw Data
LSE:AUTO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £0.10
LSE:AUTO Share Price * LSE (2020-04-08) in GBP £4.17
United Kingdom of Great Britain and Northern Ireland Interactive Media and Services Industry PB Ratio Median Figure of 8 Publicly-Listed Interactive Media and Services Companies 1.48x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.13x
LSE:AUTO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AUTO Share Price ÷ Book Value per Share (both in GBP)

= 4.17 ÷ 0.10

40.32x

* Primary Listing of Auto Trader Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Auto Trader Group is overvalued based on assets compared to the GB Interactive Media and Services industry average.
X
Value checks
We assess Auto Trader Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Auto Trader Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Auto Trader Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Auto Trader Group expected to grow at an attractive rate?
  • Auto Trader Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Auto Trader Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Auto Trader Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AUTO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AUTO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 4.6%
LSE:AUTO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3.6%
United Kingdom of Great Britain and Northern Ireland Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United Kingdom of Great Britain and Northern Ireland Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:AUTO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AUTO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 381 1
2022-03-31 403 255 223 15
2021-03-31 345 204 183 16
2020-04-09
2020-03-31 372 219 202 15
LSE:AUTO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 365 193 208
2019-06-30 360 204 203
2019-03-31 355 216 198
2018-12-31 349 209 188
2018-09-30 342 202 179
2018-06-30 336 195 175
2018-03-31 330 189 171
2017-12-31 326 188 167
2017-09-30 323 186 163
2017-06-30 317 182 159
2017-03-31 311 178 155
2016-12-31 304 172 149

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Auto Trader Group's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • Auto Trader Group's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:AUTO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Auto Trader Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AUTO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 0.22 0.22 0.22 1.00
2022-03-31 0.24 0.28 0.19 10.00
2021-03-31 0.19 0.25 0.12 11.00
2020-04-09
2020-03-31 0.22 0.22 0.21 11.00
LSE:AUTO Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.22
2019-06-30 0.22
2019-03-31 0.21
2018-12-31 0.20
2018-09-30 0.19
2018-06-30 0.18
2018-03-31 0.18
2017-12-31 0.17
2017-09-30 0.17
2017-06-30 0.16
2017-03-31 0.16
2016-12-31 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Auto Trader Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Auto Trader Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Auto Trader Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Auto Trader Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Auto Trader Group's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Auto Trader Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Auto Trader Group's 1-year earnings growth is less than its 5-year average (16.3% vs 29.2%)
  • Auto Trader Group's earnings growth has exceeded the Europe Interactive Media and Services industry average in the past year (16.3% vs -4.9%).
Earnings and Revenue History
Auto Trader Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Auto Trader Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AUTO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 365.00 208.30 105.50
2019-06-30 360.05 203.00 104.45
2019-03-31 355.10 197.70 103.40
2018-12-31 348.50 188.40 102.20
2018-09-30 341.90 179.10 101.00
2018-06-30 336.00 175.10 100.40
2018-03-31 330.10 171.10 99.80
2017-12-31 326.30 167.10 100.80
2017-09-30 322.50 163.10 101.80
2017-06-30 316.95 158.90 101.25
2017-03-31 311.40 154.70 100.70
2016-12-31 304.35 148.90 98.05
2016-09-25 297.30 143.10 95.40
2016-06-25 289.45 134.90 98.80
2016-03-27 281.60 126.70 102.20
2015-12-27 275.00 93.95 109.80
2015-09-27 266.60 58.80 105.10
2015-06-27 261.25 33.65 105.70
2015-03-29 255.90 8.50 106.30
2014-12-28 251.10 -0.90 100.60
2014-03-30 237.70 -2.80 101.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Auto Trader Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Auto Trader Group used its assets more efficiently than the Europe Interactive Media and Services industry average last year based on Return on Assets.
  • Auto Trader Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Auto Trader Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Auto Trader Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Auto Trader Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Auto Trader Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Auto Trader Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Auto Trader Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Auto Trader Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Auto Trader Group Company Filings, last reported 6 months ago.

LSE:AUTO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 95.50 325.70 31.10
2019-06-30 95.50 325.70 31.10
2019-03-31 59.00 310.30 5.90
2018-12-31 59.00 310.30 5.90
2018-09-30 20.20 320.00 3.60
2018-06-30 20.20 320.00 3.60
2018-03-31 5.60 340.80 4.30
2017-12-31 5.60 340.80 4.30
2017-09-30 -5.50 348.70 5.80
2017-06-30 -5.50 348.70 5.80
2017-03-31 -21.40 357.80 8.00
2016-12-31 -21.40 357.80 8.00
2016-09-25 -23.10 371.50 18.50
2016-06-25 -23.10 371.50 18.50
2016-03-27 -51.50 395.60 10.40
2015-12-27 -51.50 395.60 10.40
2015-09-27 -115.40 461.10 12.10
2015-06-27 -115.40 461.10 12.10
2015-03-29 -176.10 540.70 22.10
2014-12-28 -759.10 1,121.60 38.80
2014-03-30 -750.60 1,107.80 12.60
  • Auto Trader Group's level of debt (341%) compared to net worth is high (greater than 40%).
  • Auto Trader Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (59.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 32.3x coverage).
X
Financial health checks
We assess Auto Trader Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Auto Trader Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Auto Trader Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.61%
Current annual income from Auto Trader Group dividends. Estimated to be 1.84% next year.
If you bought £2,000 of Auto Trader Group shares you are expected to receive £32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Auto Trader Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.51%).
  • Auto Trader Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (6.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:AUTO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.5%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 6.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:AUTO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-03-31
2022-03-31 0.08 16.00
2021-03-31 0.07 17.00
2020-04-09
2020-03-31 0.07 17.00
LSE:AUTO Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-28 0.067 1.274
2019-06-06 0.067 1.170
2018-09-20 0.059 1.253
2017-11-09 0.054 1.433
2017-06-27 0.052 1.425
2017-06-08 0.052 1.306
2016-11-10 0.034 0.850
2016-09-29 0.020 0.522
2015-11-13 0.010 0.259

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Auto Trader Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Auto Trader Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Auto Trader Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Auto Trader Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Auto Trader Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Auto Trader Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Auto Trader Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nathan Coe
COMPENSATION £1,108,000
TENURE AS CEO 0.1 years
CEO Bio

Mr. Nathan Coe serves as the Chief Executive Officer of Auto Trader Group PLC since March 1, 2020. He had been the Chief Financial Officer of Auto Trader Group plc since July 2017 until March 1, 2020 and has been its Executive Director since April 1, 2017. He served as Chief Operating Officer of Auto Trader Group plc since April 2017 until 2019. Mr. Coe joined Auto Trader in 2007 to oversee the transition from a magazine business to being a pure digital company. He was responsible for launching a number of new business areas, and led its early entry and subsequent growth in mobile and online. Mr. Coe served as an Operations Director of Auto Trader Group plc from August 18, 2015 to March 2017. Mr. Coe served as a Product & Technology Director of Auto Trader Group Limited (also known as Trader Media Group Limited) until August 18th 2015. Mr. Coe served as Group Director of Autotrader at Trader Media Group Limited. Mr. Coe served as Group Director of Strategy and Overseas at Trader Media Group Limited. Mr. Coe served as Managing Director of Strategy & Business Transformation at Trader Media Group Limited since 2007. Mr. Coe was responsible for developing the strategy for the business and ensuring that its key initiatives are seen through to successful execution. He serves as Director of Trader Media Group Limited. He led Mergers & Acquisitions for Sensis Pty Ltd one of Australia's leading media company's with advertising products across multiple platforms (print, online and wireless) and multiple industries. Prior to joining Auto Trader, Mr. Coe was at Telstra, Australia’s leading telecommunications company, where he led Mergers and Acquisitions and Corporate Development for its media and internet businesses. Mr. Coe was previously a Consultant at PricewaterhouseCoopers in Valuations and Strategy. He graduated from the University of Sydney with a B.Com. (Hons).

CEO Compensation
  • Nathan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nathan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Auto Trader Group management team in years:

2
Average Tenure
  • The tenure for the Auto Trader Group management team is about average.
Management Team

Nathan Coe

TITLE
CEO & Executive Director
COMPENSATION
£1M
TENURE
0.1 yrs

Jamie Warner

TITLE
CFO & Director
TENURE
0.1 yrs

Catherine Faiers

TITLE
COO & Director
TENURE
0.9 yrs

Chris Kelly

TITLE
Technology Director
TENURE
6.5 yrs

Claire Baty

TITLE
Company Secretary & Director of Governance
TENURE
3.4 yrs

Mark George

TITLE
Deputy Chief Financial Officer
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure of the Auto Trader Group board of directors in years:

3.5
Average Tenure
  • The tenure for the Auto Trader Group board of directors is about average.
Board of Directors

Ed Williams

TITLE
Independent Chairman of the Board
COMPENSATION
£180K
AGE
56
TENURE
6.1 yrs

Nathan Coe

TITLE
CEO & Executive Director
COMPENSATION
£1M
TENURE
3 yrs

Jamie Warner

TITLE
CFO & Director
TENURE
0.1 yrs

Catherine Faiers

TITLE
COO & Director
TENURE
0.9 yrs

David Keens

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£75K
AGE
65
TENURE
4.9 yrs

Jill Easterbrook

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
TENURE
4.8 yrs

Jeni Mundy

TITLE
Independent Non-Executive Director
COMPENSATION
£56K
TENURE
4.1 yrs

Sigga Sigurdardottir

TITLE
Independent Non-Executive Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Auto Trader Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
20. Mar 20 Buy David Keens Individual 19. Mar 20 19. Mar 20 25,000 £3.61 £90,259
X
Management checks
We assess Auto Trader Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Auto Trader Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Could Auto Trader Group plc's (LON:AUTO) Investor Composition Influence The Stock Price?

See our latest analysis for Auto Trader Group LSE:AUTO Ownership Summary, September 4th 2019 What Does The Institutional Ownership Tell Us About Auto Trader Group? … Insider Ownership Of Auto Trader Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … However, high insider ownership can also give immense power to a small group within the company.

Simply Wall St -

Is Auto Trader Group plc's (LON:AUTO) CEO Pay Justified?

View our latest analysis for Auto Trader Group How Does Trevor Mather's Compensation Compare With Similar Sized Companies? … According to our data, Auto Trader Group plc has a market capitalization of UK£4.9b, and pays its CEO total annual compensation worth UK£1.9m. … Boasting a total shareholder return of 38% over three years, Auto Trader Group plc has done well by shareholders.

Simply Wall St -

Here's Why We Think Auto Trader Group (LON:AUTO) Is Well Worth Watching

View our latest analysis for Auto Trader Group Auto Trader Group's Earnings Per Share Are Growing. … For growth investors like me, Auto Trader Group's raw rate of earnings growth is a beacon in the night. … Although Auto Trader Group certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

What Are Analysts Saying About Auto Trader Group plc's (LON:AUTO) Future?

Looking at Auto Trader Group plc's (LON:AUTO) earnings update in March 2019, analyst consensus outlook appear cautiously subdued, with earnings expected to grow by 4.8% in the upcoming year compared with the higher past 5-year average growth rate of 36%. … Below is a brief commentary around Auto Trader Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. … LSE:AUTO Past and Future Earnings, July 31st 2019 This results in an annual growth rate of 6.5% based on the most recent earnings level of UK£198m to the final forecast of UK£243m by 2022.

Simply Wall St -

How Many Auto Trader Group plc (LON:AUTO) Shares Have Insiders Sold, In The Last Year?

See our latest analysis for Auto Trader Group The Last 12 Months Of Insider Transactions At Auto Trader Group Over the last year, we can see that the biggest insider sale was by the CEO &amp; Executive Director, Trevor Mather, for UK£2.1m worth of shares, at about UK£4.52 per share. … What Might The Insider Transactions At Auto Trader Group Tell Us? … It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Auto Trader Group insider transactions don't fill us with confidence.

Simply Wall St -

Is Auto Trader Group plc (LON:AUTO) Worth UK£5.58 Based On Its Intrinsic Value?

In this article we are going to estimate the intrinsic value of Auto Trader Group plc (LON:AUTO) by projecting its future cash flows and then discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (£, Millions) £212.9m £240.8m £261.9m £276.6m £288.4m £298.2m £306.3m £313.3m £319.5m £325.0m Growth Rate Estimate Source Analyst x10 Analyst x10 Analyst x8 Est @ 5.61% Est @ 4.3% Est @ 3.38% Est @ 2.73% Est @ 2.28% Est @ 1.96% Est @ 1.74% Present Value (£, Millions) Discounted @ 8.06% £197.0 £206.2 £207.5 £202.8 £195.7 £187.2 £178.0 £168.5 £159.0 £149.7 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= £1.9b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … LSE:AUTO Intrinsic value, July 10th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

We Think Auto Trader Group (LON:AUTO) Can Stay On Top Of Its Debt

We can see that Auto Trader Group plc (LON:AUTO) does use debt in its business. … LSE:AUTO Historical Debt, July 1st 2019 How Healthy Is Auto Trader Group's Balance Sheet? … Either way, since Auto Trader Group does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

What Should We Expect From Auto Trader Group plc's (LON:AUTO) Earnings In The Next Couple Of Years?

In June 2019, Auto Trader Group plc (LON:AUTO) released its latest earnings announcement, which confirmed that the business experienced a robust tailwind, eventuating to a double-digit earnings growth of 15%. … Investors may find it useful to understand how market analysts view Auto Trader Group's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Auto Trader Group Analysts' outlook for this coming year seems rather subdued, with earnings rising by a single digit 4.8%.

Simply Wall St -

Auto Trader Group (LON:AUTO) Shareholders Have Enjoyed A 38% Share Price Gain

Just take a look at Auto Trader Group plc (LON:AUTO), which is up 38%, over three years, soundly beating the market return of 16% (not including dividends). … Auto Trader Group was able to grow its EPS at 18% per year over three years, sending the share price higher. … As it happens, Auto Trader Group's TSR for the last 3 years was 43%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Should You Like Auto Trader Group plc’s (LON:AUTO) High Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Auto Trader Group: 0.65 = UK£231m ÷ (UK£413m - UK£57m) (Based on the trailing twelve months to September 2018.) So, Auto Trader Group has an ROCE of 65%. … What Are Current Liabilities, And How Do They Affect Auto Trader Group's ROCE? … The Bottom Line On Auto Trader Group's ROCE This is good to see, and with such a high ROCE, Auto Trader Group may be worth a closer look.

Simply Wall St -

Company Info

Description

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. It offers its products to retailers and home traders, and logistics firms; vehicle advertisement on its Websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its Websites for manufacturers and their advertising agencies. The company was founded in 1977 and is headquartered in Manchester, the United Kingdom.

Details
Name: Auto Trader Group plc
AUTO
Exchange: LSE
Founded: 1977
£4,018,568,651
964,379,326
Website: http://www.autotrader.co.uk
Address: Auto Trader Group plc
1 Tony Wilson Place,
4th Floor,
Manchester,
Greater Manchester, M15 4FN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AUTO Ordinary Shares London Stock Exchange GB GBP 19. Mar 2015
OTCPK ATDR.F Ordinary Shares Pink Sheets LLC US USD 19. Mar 2015
DB 2UA Ordinary Shares Deutsche Boerse AG DE EUR 19. Mar 2015
BATS-CHIXE AUTOl Ordinary Shares BATS 'Chi-X Europe' GB GBP 19. Mar 2015
OTCPK ATDR.Y UNSPONSORED ADR Pink Sheets LLC US USD 11. Aug 2015
Number of employees
Current staff
Staff numbers
798
Auto Trader Group employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 00:31
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.