Avis Budget Group, Inc. (CAR) AI Stock Analysis

Avis Budget Group, Inc. provides vehicle rentals, car sharing, and ancillary services to businesses and consumers. The company operates core brands such as Avis, which delivers mobility solutions for commercial and leisure travel, and Budget Truck, which maintains a fleet of approximately 20,000 vehicles across roughly 465 dealer-operated and 385 company-operated locations in the continental United States. It also operates Zipcar, a car-sharing network, alongside international rental brands like Budget, Payless, Apex, and Maggiore. Additional offerings include insurance coverage options, fuel services, roadside assistance, electronic toll collection, curbside delivery, and portable navigation units.

Avis Budget Group achieved a 5-year revenue CAGR of 16.6% from FY2020 to FY2025. Annual revenue expanded from $9.31B in FY2021 to $11.99B in FY2022 and peaked at $12.01B in FY2023, before dipping to $11.79B in FY2024 and $11.65B in FY2025. Gross margin contracted from 39.8% in FY2022 to 24.4% in FY2025, while operating margin slipped from 27.4% to 11.0%. Net income moved from profits of $2.76B in FY2022 to losses of -$1.82B in FY2024 and -$889.0M in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue fell 1.3% year-over-year, though quarterly earnings grew 880.0%.

As of June 30, 2026, Avis Budget Group held $558.0M in cash and short-term investments against $29.12B in total debt, yielding net debt of $28.57B. The current ratio stood at 0.81, and shareholders' equity was -$3.39B. Operating cash flow in FY2025 was $3.30B, but capital expenditures of $15.27B resulted in free cash flow of -$11.98B. The company allocated $7.0M toward share buybacks in FY2025, and its share count has decreased 38.8% over the past 5 years.

Avis Budget Group trades at an enterprise value of $32.30B and a market capitalization of $3.63B. Its forward P/E of 3.4x is well below the 17.2x median of its US-listed Industrials peers. The company's EV-to-EBITDA stands at 8.4x compared to the peer median of 13.9x, and its price-to-sales multiple is 0.3x versus 1.5x for peers. Over the trailing year, the stock returned -32.0%, trailing the 16.8% gain for the S&P 500.

Wall Street analysts carry 0 Strong Buy, 0 Buy, 6 Hold, 1 Sell, and 1 Strong Sell recommendations on CAR. The mean price target is $122.86, representing a 19.5% premium to the last close of $102.83 on October 16, 2026. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $1.30 on revenue of $11.62B. The company beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Avis Budget Group, Inc. (CAR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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