Operate three primary websites focused on automotive content and services. Provide media services for automakers, including advertising and marketing campaigns. Now — the numbers.
Revenue is spread across several lines; no single product carries the company.
This is an established company with proven profits.
If every debt were paid off today, $2.9B would still be left in the vault — a solid cushion for hard times.
The market pays 3× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 98% of them.
Analysts' average target sits 20% below today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Debt is low and cash is strong; the finances stand solid.
The price looks reasonable next to what the company earns.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
The stock trades 58% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 22% — still a thick cushion, though costs have been eating into it lately.
There is $2.9B in the vault; even if every debt were paid off, $2.9B would remain.
It pays out $1.84 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 3% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The stock trades 20% above the average analyst price target.
On our five-subject report card, ATHM sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: ATHM is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.