Auto Trader Group plc (AUTO.L) stock analysis

In our weekly check, Auto Trader Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Auto Trader Group plc

Auto Trader Group plc is a Communication Services company (Internet Content & Information) based in the United Kingdom, listed on LSE as AUTO.L.

What our checks show for AUTO.L

Red flags

• The net margin fell by 9.5 points over 5 years, to 47.1%: the company keeps less of each sale as profit.
• The gross margin fell by 23 points, to 75.4%: costs are rising faster than prices.

Warning signs

• Analysts expect only about 4.8% a year of growth in revenue.
• The stock has fallen as much as 53% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 99.9 times over.
• Analysts expect earnings per share to grow about 13.5% a year over the next years.
• Analysts expect the net margin to improve by 12.8 points from today's 47.1%.
• Earnings per share grew 10.8% a year over the last 3 years.
• The company keeps 47.1% of its revenue as net profit.
• Free cash flow is 47.9% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-11-05

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Questions

What grade does Auto Trader Group plc (AUTO.L) have?

In our weekly check, Auto Trader Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AUTO.L stock?

This week's biggest flags for Auto Trader Group plc: Margins falling, Gross margin falling, Weak revenue forecast. In total 5 of 25 checks show a warning or a red flag.

What does Auto Trader Group plc do?

Auto Trader Group plc is a Communication Services company (Internet Content & Information) based in the United Kingdom, listed on LSE as AUTO.L.

When does Auto Trader Group plc report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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