REA Group Limited (REA.AX) stock analysis

In our weekly check, REA Group Limited is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 4, red flags: 0.

About REA Group Limited

REA Group Limited is a Communication Services company (Internet Content & Information) based in Australia, listed on ASX as REA.AX.

What our checks show for REA.AX

Warning signs

• Analysts expect only about 4.4% a year of growth in revenue.
• The dividend takes 89% of profit: little cushion if profit falls.
• The stock has fallen as much as 60% from a peak. Would you have held through that?
• Thinly traded (about 245 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0.04x equity.
• Operating profit covers interest 83.8 times over.
• The gross margin is 50.5% and has risen by 8.6 points: pricing power is holding.
• Operating cash flow is 1.4x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.8% a year over the next years.
• Analysts expect the net margin to improve by 14.3 points from today's 27.9%.

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Questions

What grade does REA Group Limited (REA.AX) have?

In our weekly check, REA Group Limited is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 4, red flags: 0. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of REA.AX stock?

This week's biggest flags for REA Group Limited: Weak revenue forecast, Dividend stretched, Deep past fall. In total 4 of 25 checks show a warning or a red flag.

What does REA Group Limited do?

REA Group Limited is a Communication Services company (Internet Content & Information) based in Australia, listed on ASX as REA.AX.

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 2026-10-31

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