Insights

Why is the Eagers Automotive (ASX:APE) share price lifting today?

Investors are sending Eagers’ shares higher today amid its latest investor presentation…
The post Why is the Eagers Automotive (ASX:APE) share price lifting today? appeared first on The Motley Fool Australia. –

The Eagers Automotive Ltd (ASX: APE) share price is blazing ahead on Wednesday after the company released its latest investor presentation. This presentation has been prepared by Eagers for its appearance at the 2021 Morgans Conference.

Investors are buying up shares in the automotive retailer following the release of this slide deck, which has given additional clarity to the company’s near-term outlook.

At the time of writing, the Eagers Automotive share price is attracting $15.02 per share. This reflects an increase of 3.94% on yesterday’s closing price of $14.45.

Eagers share price climbs amid presentation

Australia’s oldest listed automotive retail group has gained the attention of investors on Wednesday. Heading into afternoon trade, more than 315,000 shares have exchanged hands today. This is approximately 56% of the company’s average monthly trade volume.

It appears its latest investor presentation has been met with enthusiasm. So, what exactly is contained in this release that is being met with a rally in the Eagers’ share price today?

Firstly, the automotive retailer highlighted its rich and successful history of operating in the Australian market. Originally founded in 1913, Eagers has reached an honourable age of 108 — with the past 64 years being publicly listed.

Since 2005, Eagers has grown its underlying profit before tax from $20 million to $209 million in 2020. This is continuing to accelerate as its first half of 2021 saw profits hit $218.6 million.

The company now boasts an extensive partner portfolio consisting of the likes of Toyota, Ford, BMW, and Porsche. In fact, Eagers considers its portfolio unrivalled, with the top 15 vehicle manufacturers by volume represented.

From the presentation, Eagers has outlined its intention to build upon its existing history by implementing a few tech-driven additions. In turn, the company is partnering with fintech companies to help it offer new innovations.

These include its plan to sell vehicles at shopping centres and airports, through what it dubs as “Automall”. Additionally, Eagers will integrate online finance applications, a sales app, online services bookings, and SMS payments.

Positive outlook

Another factor bringing the Eagers share price into focus today is the macro conditions for the industry. Despite chip shortages causing some issues for vehicle manufacturers, Aussie demand for new cars has been strong. According to the Federal Chamber of Automotive Industries, new car sales increased 21% year on year to 83,312 in September. Eagers makes a point of this in its presentation, noting that demand continues to outstrip supply.

Additionally, the company expects further cost reductions driven by its investment in tech. At the same time, the company is targeting its merger and acquisition activity to deliver further revenue growth.

Finally, Eagers mentioned near-term impacts due to COVID-19. However, these issues are isolated in nature. The company’s underlying performance remains resilient. The company is optimistic for its future once COVID-19 restrictions begin to be eased.

Looking in the rear view

Over the past year, the Eagers Automotive share price has outperformed the benchmark index. Specifically, the automotive retailer has gained 40.8% over the 12-month period. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up roughly half as much over the same period.

As a result, Eagers is trading on a price-to-earnings (P/E) ratio of 11 times. This is slightly under the Australian specialty retail industry average of 11.4 times.

The post Why is the Eagers Automotive (ASX:APE) share price lifting today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Eagers Automotive right now?

Before you consider Eagers Automotive, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Eagers Automotive wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound

4 ASX shares going ex-dividend today

These 5 ASX 200 shares are going ex-dividend this week

Which ASX shares are making a move on the ASX 300?

2 ASX shares to take off after excellent reporting seasons

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BMW. The Motley Fool Australia has recommended BMW. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!