AVIS BUDGET GROUP INC (CAR) Fundamental Analysis & Valuation
NASDAQ:CAR • US0537741052
99.56 USD
-1.62 (-1.61%)
At close: Mar 12, 2026
96.01 USD
-3.55 (-3.57%)
After Hours: 3/12/2026, 8:26:41 PM
This CAR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 3 out of 10 to CAR. CAR was compared to 42 industry peers in the Ground Transportation industry. CAR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAR is valied quite expensively at the moment, while it does show a decent growth rate.
1. CAR Profitability Analysis
1.1 Basic Checks
- CAR had positive earnings in the past year.
- CAR had a positive operating cash flow in the past year.
- In multiple years CAR reported negative net income over the last 5 years.
- Each year in the past 5 years CAR had a positive operating cash flow.
1.2 Ratios
- CAR's Return On Assets of -2.84% is on the low side compared to the rest of the industry. CAR is outperformed by 69.05% of its industry peers.
- With a Return On Invested Capital value of 3.54%, CAR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- CAR had an Average Return On Invested Capital over the past 3 years of 4.69%. This is below the industry average of 7.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.84% | ||
| ROE | N/A | ||
| ROIC | 3.54% |
ROA(3y)-1.37%
ROA(5y)2.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.69%
ROIC(5y)6.67%
1.3 Margins
- CAR has a Operating Margin of 10.92%. This is amongst the best in the industry. CAR outperforms 80.95% of its industry peers.
- CAR's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 60.28%, CAR is doing good in the industry, outperforming 69.05% of the companies in the same industry.
- CAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.92% | ||
| PM (TTM) | N/A | ||
| GM | 60.28% |
OM growth 3Y-26.43%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.57%
GM growth 5Y8.14%
2. CAR Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAR is destroying value.
- Compared to 1 year ago, CAR has about the same amount of shares outstanding.
- CAR has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CAR has a worse debt to assets ratio.
2.2 Solvency
- CAR has an Altman-Z score of 0.59. This is a bad value and indicates that CAR is not financially healthy and even has some risk of bankruptcy.
- CAR has a Altman-Z score of 0.59. This is in the lower half of the industry: CAR underperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.62
WACC5.72%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that CAR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.72, CAR is doing worse than 83.33% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that CAR may have some problems paying its short term obligations.
- CAR has a Quick ratio of 0.72. This is in the lower half of the industry: CAR underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. CAR Growth Analysis
3.1 Past
- CAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -79.84%.
- CAR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -60.03% yearly.
- The Revenue has decreased by -1.16% in the past year.
- CAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.62% yearly.
EPS 1Y (TTM)-79.84%
EPS 3Y-60.03%
EPS 5YN/A
EPS Q2Q%-122.2%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-0.96%
Revenue growth 5Y16.62%
Sales Q2Q%-1.7%
3.2 Future
- The Earnings Per Share is expected to grow by 44.81% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y9.67%
EPS Next 2Y49.97%
EPS Next 3Y44.81%
EPS Next 5YN/A
Revenue Next Year0.56%
Revenue Next 2Y1.13%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. CAR Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.84 indicates a quite expensive valuation of CAR.
- CAR's Price/Earnings ratio is in line with the industry average.
- CAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 24.47, the valuation of CAR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CAR indicates a somewhat cheap valuation: CAR is cheaper than 64.29% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CAR to the average of the S&P500 Index (23.82), we can say CAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 24.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAR is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.81 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAR does not grow enough to justify the current Price/Earnings ratio.
- CAR's earnings are expected to grow with 44.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y49.97%
EPS Next 3Y44.81%
5. CAR Dividend Analysis
5.1 Amount
- CAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAR Fundamentals: All Metrics, Ratios and Statistics
99.56
-1.62 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners138.31%
Inst Owner Change5.72%
Ins Owners2.26%
Ins Owner Change0.73%
Market Cap3.51B
Revenue(TTM)11.65B
Net Income(TTM)-889.00M
Analysts70
Price Target121.04 (21.57%)
Short Float %22.17%
Short Ratio10.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-320.1%
Min EPS beat(2)-665.99%
Max EPS beat(2)25.78%
EPS beat(4)2
Avg EPS beat(4)-172.69%
Min EPS beat(4)-665.99%
Max EPS beat(4)44.1%
EPS beat(8)3
Avg EPS beat(8)183.14%
EPS beat(12)7
Avg EPS beat(12)142.99%
EPS beat(16)11
Avg EPS beat(16)127.46%
Revenue beat(2)1
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)0.77%
Revenue beat(4)2
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)3
Avg Revenue beat(12)-1.4%
Revenue beat(16)7
Avg Revenue beat(16)0.18%
PT rev (1m)-16.93%
PT rev (3m)-12.58%
EPS NQ rev (1m)-133.51%
EPS NQ rev (3m)-133.51%
EPS NY rev (1m)-49.16%
EPS NY rev (3m)-52.2%
Revenue NQ rev (1m)-2.89%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 24.47 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | 1.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.81 |
EPS(TTM)3.71
EY3.73%
EPS(NY)4.07
Fwd EY4.09%
FCF(TTM)-339.7
FCFYN/A
OCF(TTM)93.48
OCFY93.89%
SpS330.46
BVpS-88.74
TBVpS-137.46
PEG (NY)2.78
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.84% | ||
| ROE | N/A | ||
| ROCE | 4.48% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.61% | ||
| ROICexgc | 3.85% | ||
| OM | 10.92% | ||
| PM (TTM) | N/A | ||
| GM | 60.28% | ||
| FCFM | N/A |
ROA(3y)-1.37%
ROA(5y)2.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.69%
ROIC(5y)6.67%
ROICexc(3y)4.79%
ROICexc(5y)6.83%
ROICexgc(3y)5.1%
ROICexgc(5y)7.38%
ROCE(3y)5.94%
ROCE(5y)8.45%
ROICexgc growth 3Y-32.21%
ROICexgc growth 5YN/A
ROICexc growth 3Y-31.85%
ROICexc growth 5YN/A
OM growth 3Y-26.43%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.57%
GM growth 5Y8.14%
F-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 528.88% | ||
| Cap/Sales | 131.09% | ||
| Interest Coverage | 0.98 | ||
| Cash Conversion | 79.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.59 |
F-Score4
WACC5.72%
ROIC/WACC0.62
Cap/Depr(3y)502.98%
Cap/Depr(5y)534.23%
Cap/Sales(3y)115.06%
Cap/Sales(5y)108.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-79.84%
EPS 3Y-60.03%
EPS 5YN/A
EPS Q2Q%-122.2%
EPS Next Y9.67%
EPS Next 2Y49.97%
EPS Next 3Y44.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y-0.96%
Revenue growth 5Y16.62%
Sales Q2Q%-1.7%
Revenue Next Year0.56%
Revenue Next 2Y1.13%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
EBIT growth 1Y-14.05%
EBIT growth 3Y-27.14%
EBIT growth 5YN/A
EBIT Next Year1.82%
EBIT Next 3Y11.6%
EBIT Next 5YN/A
FCF growth 1Y-83.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.31%
OCF growth 3Y-11.2%
OCF growth 5Y36.68%
AVIS BUDGET GROUP INC / CAR FAQ
What is the fundamental rating for CAR stock?
ChartMill assigns a fundamental rating of 3 / 10 to CAR.
What is the valuation status for CAR stock?
ChartMill assigns a valuation rating of 3 / 10 to AVIS BUDGET GROUP INC (CAR). This can be considered as Overvalued.
What is the profitability of CAR stock?
AVIS BUDGET GROUP INC (CAR) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AVIS BUDGET GROUP INC (CAR) stock?
The Price/Earnings (PE) ratio for AVIS BUDGET GROUP INC (CAR) is 26.84 and the Price/Book (PB) ratio is -1.12.
What is the expected EPS growth for AVIS BUDGET GROUP INC (CAR) stock?
The Earnings per Share (EPS) of AVIS BUDGET GROUP INC (CAR) is expected to grow by 9.67% in the next year.