Equity Analysis /

AU : Carsales.com - Offshore set to assist growth into FY23

    Steven Sassine
    Steven Sassine

    Research Associate

    15 August 2022
    Published byCGS-CIMB

    CAR’s FY22 result was in line with recently released guidance. Adj. revenue grew ~16% on pcp to ~A$509m, Adj. EBITDA was up ~7% on pcp to ~A$272m. EBITDA margin was 3.2% lower to ~53.3% (mix impact related to Tyreconnect) and Adj NPAT was up 27% on pcp to ~A$195m. A final dividend of A24.5cps was declared. It was a solid result overall from CAR, with Private the standout in our view (+26% revenue growth to ~A$69m). The groups topline growth was also assisted by strong performances by Media, Encar and Trader Interactive. We make nominal changes to our FY23F-FY25F EBITDA (-1%-+2%) on today’s result and broader FY23 qualitative guidance of margin expansion into FY23. We remain attracted to CAR’s longer term growth opportunities and business resilience and continue to look for an attractive entry point into the name. Hold maintained.