Avis Budget Group Stock Analysis, Valuation (NASDAQ:CAR)

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$42 $2.75 (6.15%) CAR stock closing price May 18, 2018 (Closing)
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Avis Budget Group
Updated on : May 18, 2018
previous close
CAR 42 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.9%
Operating Profit
Operating Margin:
5.8%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
13.99B
Debt/Equity Ratio:
 30.75
Compared to the industry
Cash Flow
Operating cash flow:
$503M
Net Income:
-$87M
PROS      CONS
ROE
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
Net Margins
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CAR PS :
0.4
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2%
Return on Equity:
110.9%
Free Cash Flow Margin:
22.7%
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CAR Stock Analysis

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Take a look at Amigobulls Avis Budget Group stock analysis video. Our CAR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Avis Budget Group Inc. Stock Rating 3.5/5

Amigobulls CAR stock analysis relies on business fundamentals such as Avis Budget Group revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We compare Avis Budget Group valuation with its sector peers to gauge relative attractiveness of CAR stock. Avis Budget Group stock rating is our opinion about the business fundamentals of the company.

Should you buy CAR stock?

  • CAR stock is trading at an earnings multiple of 13.5 which is better than the industry average of 21.7.
  • When compared with the Business Services industry average PS ratio of 1.6, the price-to-sales ratio of 0.4 for CAR stock is attractive.
  • The LTM ROE of 110.9% for Avis Budget Group is attractive.
  • Avis Budget Group has a healthy FCF (Free Cash Flow) margin of 22.7%.

Should you sell CAR stock?

  • Long term revenue growth of 3.9% over the past 5 years has been disappointing.
  • Avis Budget Group posted a TTM Net margin of 4.2%.
  • Avis Budget Group is debt laden and has a high debt/equity ratio of  30.75.
  • Avis Budget Group has a poor return on invested capital of 2%.

Comments on this video and Avis Budget Group stock

Investors can use Amigobulls Avis Budget Group stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Avis Budget Group revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about CAR stock.