📊 CAR Key Takeaways
Investment Thesis
Avis Budget Group is experiencing severe financial distress with negative profitability (net margin -7.6%, operating margin -8.0%) and critically negative stockholders' equity of -3.1B, indicating the company is technically insolvent. While strong operating cash flow of 3.3B provides temporary relief, the combination of high leverage (6.0B long-term debt), deteriorating liquidity (current ratio 0.72x), and negative net income trends signal fundamental operational challenges that make the company a significant credit and equity risk.
CAR Strengths
- Robust operating cash flow of $3.3B despite net losses suggests underlying operational cash generation capacity
- Substantial asset base of $31.3B provides collateral value for creditors
- Positive FCF margin of 28.3% indicates cash conversion efficiency in operations
CAR Risks
- Negative stockholders' equity of -3.1B represents technical insolvency with equity holders having negative net worth
- Operating losses of -929M and net losses of -889M indicate core business is unprofitable
- Severe liquidity stress with current ratio of 0.72x and negative interest coverage of -2.2x raising debt service concerns
- High leverage with $6.0B long-term debt against negative equity creates refinancing risk
- Revenue decline of 1.2% YoY signals market headwinds or operational deterioration
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margin
- Debt refinancing schedule and ability to service $6.0B long-term debt obligations
- Trajectory of stockholders' equity recovery from negative -3.1B position
- Operating cash flow sustainability as revenue contracts
- Current ratio improvement and working capital management
CAR Financial Metrics
💡 AI Analyst Insight
The 28.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CAR Profitability Ratios
CAR vs Default Sector
How AVIS BUDGET GROUP, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CAR Balance Sheet & Liquidity
CAR 5-Year Financial Trend
5-Year Trend Summary: AVIS BUDGET GROUP, INC.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $42.08 reflects profitable operations.
CAR Growth Metrics (YoY)
CAR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.5B | $137.0M | $3.84 |
| Q2 2025 | $3.0B | $4.0M | $0.10 |
| Q1 2025 | $2.4B | -$114.0M | $-3.21 |
| Q3 2024 | $3.5B | $137.0M | $3.84 |
| Q2 2024 | $3.0B | $14.0M | $0.41 |
| Q1 2024 | $2.6B | -$114.0M | $-3.21 |
| Q3 2023 | $3.5B | $626.0M | $16.78 |
| Q2 2023 | $3.1B | $435.0M | $11.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CAR Capital Allocation
CAR SEC Filings
Access official SEC EDGAR filings for AVIS BUDGET GROUP, INC. (CIK: 0000723612)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 20, 2026 | 4 | xslF345X06/ownership.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773954971.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773954869.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773954764.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773954674.xml | View → |
❓ Frequently Asked Questions about CAR
What is the AI rating for CAR?
AVIS BUDGET GROUP, INC. (CAR) has an AI rating of SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAR's key strengths?
Robust operating cash flow of $3.3B despite net losses suggests underlying operational cash generation capacity. Substantial asset base of $31.3B provides collateral value for creditors.
What are the risks of investing in CAR?
Negative stockholders' equity of -3.1B represents technical insolvency with equity holders having negative net worth. Operating losses of -929M and net losses of -889M indicate core business is unprofitable.
What is CAR's revenue and growth?
AVIS BUDGET GROUP, INC. reported revenue of $11.7B.
Does CAR pay dividends?
AVIS BUDGET GROUP, INC. does not currently pay dividends.
Where can I find CAR SEC filings?
Official SEC filings for AVIS BUDGET GROUP, INC. (CIK: 0000723612) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CAR's EPS?
AVIS BUDGET GROUP, INC. has a diluted EPS of $-25.25.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.