Avis Budget Group Inc. Common Stock (CAR)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market has repriced Avis from a 52-week high of $847.70 to $107.60 by the close on 2026-10-13. The filed record shows why: in fiscal year 2023 revenue was $12.0B and net income was $1.6B, with diluted EPS of $42.08; in fiscal year 2024 revenue was $11.8B but net loss was $1.8B, with diluted EPS of -$51.23; and in fiscal year 2025 revenue was $11.7B and net loss was $889.0M, with diluted EPS of -$25.25. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $2.5B and net loss was $283.0M, with diluted EPS of -$8.01. The latest quarter was profitable, but one quarter does not erase the leverage and fleet risk. FairStock's calculations at that close show P/E -5.93, EV/EBITDA 8.42, FCF yield -299.9%, Altman Z 0.20, Piotroski 9/9, and a FairStock score of 26/100. The 9/9 Piotroski is notable, suggesting some accounting signals improved, but Altman Z 0.20 warns of financial distress. Rental cars are capital-intensive, cyclical, and competitive; Avis has brands and scale, yet no durable pricing moat is evident. Graham would demand a margin of safety; with negative earnings and cash flow, book value and asset values matter, though P/B is unavailable. Buffett would ask whether the business can earn high returns on capital; ROCE of 2.70% says not currently. It is categorized as a TURNAROUND — loss in the latest year after earlier profits. The price is much lower, but cheapness is not proven. I would watch whether positive quarterly earnings persist and debt/liquidity stabilize before calling it a value.

In plain English: Avis Budget rents cars and trucks and runs Zipcar. The business has been losing money in recent years and looks financially strained, even though the latest quarter was profitable. The stock has fallen a long way, but with negative earnings it is hard to call the price cheap on the numbers; it looks more like a risky turnaround than a steady bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer