APE (Eagers Automotive Ltd) vs S&P/ASX 300 Comparison

APE

S&P/ASX 300

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APE

S&P/ASX 300

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APE

S&P/ASX 300

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P/ASX 300

APE

ORLY

AZO

CVNA

KMX

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Eagers Automotive Ltd
Glance View

Economic Moat

None

Market Cap

3.2B AUD

Industry

Retail

Eagers Automotive Ltd is a prominent player in the Australian automotive retail industry, which has engineered its business model around the comprehensive ecosystem of vehicle sales and services. Emerging from its roots in the early 20th century, Eagers has strategically expanded its operations to encompass a broad spectrum of services, including the sale of new and used vehicles, vehicle maintenance and repair services, as well as parts supply. The company's vast dealership network, which includes a well-balanced portfolio of leading automotive brands, forms the backbone of its operations. Eagers leverages its extensive market reach and brand associations to cater to diverse consumer preferences, fueling its revenue stream by facilitating seamless vehicle acquisition experiences for customers across Australia. Beyond just selling cars, Eagers Automotive generates substantial income from after-sales services and financing options, which are critical components of its business strategy. The service and repair aspect of their operations provides a steady source of recurring income, fostering customer loyalty and retention. Additionally, the company's foray into financial services, such as offering vehicle financing solutions and insurance products, further amplifies its revenue mix. These financial initiatives not only provide value-added services to customers but also create synergies that enhance overall profitability. Eagers' strategic focus on a holistic automotive service model ensures that even as markets shift, they remain a pivotal force in Australia’s automotive landscape.

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APE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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APE

vs

S&P/ASX 300

Stocks Performance
APE vs S&P/ASX 300

Performance Gap
APE vs S&P/ASX 300

Performance By Year
APE vs S&P/ASX 300

Competitors Performance
Eagers Automotive Ltd vs Peers

Eagers Automotive Ltd
Glance View

Company

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APE vs S&P/ASX 300

Stocks Performance APE vs S&P/ASX 300

Performance Gap APE vs S&P/ASX 300

Performance By Year APE vs S&P/ASX 300

Competitors Performance Eagers Automotive Ltd vs Peers

Eagers Automotive Ltd Glance View

Company

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Stocks

APE

vs

S&P/ASX 300

Stocks Performance
APE vs S&P/ASX 300

Performance Gap
APE vs S&P/ASX 300

Performance By Year
APE vs S&P/ASX 300

Competitors Performance
Eagers Automotive Ltd vs Peers

Eagers Automotive Ltd
Glance View