📊 CAR Key Takeaways
Is Avis Budget Group, Inc.. (CAR) a Good Investment?
Avis faces severe financial distress with negative stockholders' equity of -$3.4B, indicating liabilities exceed assets and significant bankruptcy risk. The company is unprofitable with a -13.4% operating margin, declining revenues, and a current ratio of 0.74x signaling acute liquidity constraints. While positive operating cash flow of $434M provides temporary relief, it is insufficient to address the structural balance sheet deterioration and $6.0B debt load with -3.1x interest coverage.
Avis Budget's fundamentals are pressured by severe profitability weakness, with deeply negative operating and net margins, negative interest coverage, and negative equity indicating a highly stressed capital structure. While the business still generates strong operating cash flow, the combination of losses, weak liquidity, and balance sheet fragility makes the growth and cash generation quality less convincing.
Why Buy Avis Budget Group, Inc.. Stock? CAR Key Strengths
- Operating cash flow of $434M despite net losses suggests underlying cash generation capability
- Free cash flow margin of 17.2% indicates some operational cash generation relative to revenue
- Net loss improving 10.7% YoY suggests loss magnitude is compressing from prior period
- Strong operating cash flow generation of $3.30B despite net losses
- Revenue base remains large at $11.65B with only a modest 1.2% YoY decline
- Free cash flow margin appears very high at 28.3%, providing some short-term financial flexibility
CAR Stock Risks: Avis Budget Group, Inc.. Investment Risks
- Negative stockholders' equity of -$3.4B represents critical solvency risk and potential bankruptcy
- Current ratio of 0.74x indicates severe liquidity crisis with inability to cover short-term obligations
- Interest coverage ratio of -3.1x means company cannot service debt from operating income; reliant entirely on asset sales or restructuring
- Revenue declining 1.2% YoY paired with unprofitability suggests structural business challenges
- Long-term debt of $6.0B with only $528M cash creates refinancing risk
- Operating income of -$929.00M and net income of -$889.00M indicate materially weak core profitability
- Negative stockholders equity of -$3.13B signals a stressed balance sheet and limits financial resilience
- Current ratio of 0.72x and interest coverage of -2.2x point to liquidity pressure and debt-servicing risk
Key Metrics to Watch
- Stockholders' equity trend - movement toward positive equity is critical
- Operating cash flow sustainability and cash burn rate
- Debt refinancing activity and covenant compliance status
- Revenue stabilization and path to operating profitability
- Sustainable operating margin recovery
- Liquidity and leverage trends including cash balance, current ratio, and long-term debt
Avis Budget Group, Inc.. (CAR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CAR Profit Margin, ROE & Profitability Analysis
CAR vs Automotive Sector: How Avis Budget Group, Inc.. Compares
How Avis Budget Group, Inc.. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avis Budget Group, Inc.. Stock Overvalued? CAR Valuation Analysis 2026
Based on fundamental analysis, Avis Budget Group, Inc.. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avis Budget Group, Inc.. Balance Sheet: CAR Debt, Cash & Liquidity
CAR Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CAR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.4B | -$283.0M | $-8.01 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avis Budget Group, Inc.. Dividends, Buybacks & Capital Allocation
CAR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Avis Budget Group, Inc.. (CIK: 0000723612)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CAR
What is the AI rating for CAR?
Avis Budget Group, Inc.. (CAR) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAR's key strengths?
Claude: Operating cash flow of $434M despite net losses suggests underlying cash generation capability. Free cash flow margin of 17.2% indicates some operational cash generation relative to revenue. ChatGPT: Strong operating cash flow generation of $3.30B despite net losses. Revenue base remains large at $11.65B with only a modest 1.2% YoY decline.
What are the risks of investing in CAR?
Claude: Negative stockholders' equity of -$3.4B represents critical solvency risk and potential bankruptcy. Current ratio of 0.74x indicates severe liquidity crisis with inability to cover short-term obligations. ChatGPT: Operating income of -$929.00M and net income of -$889.00M indicate materially weak core profitability. Negative stockholders equity of -$3.13B signals a stressed balance sheet and limits financial resilience.
What is CAR's revenue and growth?
Avis Budget Group, Inc.. reported revenue of $2.5B.
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 $-8.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CAR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Avis Budget Group, Inc.. has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CAR stock overvalued or undervalued?
Valuation metrics for CAR: ROE of N/A (sector avg: 12%), net margin of -11.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy CAR stock in 2026?
Our dual AI analysis gives Avis Budget Group, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CAR's free cash flow?
Avis Budget Group, Inc..'s operating cash flow is $434.0M, with capital expenditures of N/A. FCF margin is 17.2%.
How does CAR compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -11.2% (avg: 6%), ROE N/A (avg: 12%), current ratio 0.74 (avg: 1.2).