Forum Financial Management LP Invests in Avis Budget Group, during First Quarter
July 5, 2023
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Avis Budget ($NASDAQ:CAR) Group, Inc. is a leading provider of vehicle rental services, operating through its Avis and Budget brands. Forum Financial Management LP invested in Avis Budget Group, Inc. during the first quarter of the year, as per its latest disclosure to the SEC. This new position indicates that Forum Financial Management LP is confident in the potential of the company and its stock, which has experienced a steady increase in recent months.
This move suggests that the company is on track to deliver strong returns in the coming quarters. It will be interesting to see if other investors follow suit and further increase their holdings in Avis Budget Group, Inc.
Market Price
The stock opened at $227.1 and closed at $228.1, a 0.3% decrease from the prior closing price of 228.7. AVIS BUDGET has been making investments in technology and developing new products to increase its competitive advantage in the rental car industry. In addition, the company is focused on optimizing its customer service to improve customer loyalty and satisfaction. The company is also working to reduce its costs and improve its operational efficiency in order to remain profitable in the long-term. This vote of confidence is likely to have a positive impact on the company’s future prospects and could lead to further growth in its share price over time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avis Budget. More…
| Total Revenues | Net Income | Net Margin |
| 12.84k | 2.55k | 20.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avis Budget. More…
| Operations | Investing | Financing |
| 4.38k | -4.81k | 451 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avis Budget. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.93k | 26.63k | -11.17 |
Key Ratios Snapshot
Some of the financial key ratios for Avis Budget are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.2% | 104.4% | 28.1% |
| FCF Margin | ROE | ROA |
| -28.0% | -393.2% | 8.7% |
Analysis
At GoodWhale, we have conducted an analysis of Avis Budget‘s financials. Our Star Chart shows that Avis Budget is strong in assets, growth, and profitability, and weak in dividend. Its intermediate health score of 5/10 suggests that it is likely to safely ride out any crisis without the risk of bankruptcy. We classify this company as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are looking for stable and growing companies with strong competitive advantage may be interested in Avis Budget. With its strong asset base, decent growth rate, and intermediate health score, Avis Budget is a good option for those investors who are looking to invest in a safe long-term investment. More…
Peers
Its competitors include Hertz Global Holdings Inc, Localiza Rent A Car SA, and HyreCar Inc. Avis Budget Group Inc has a strong market position and offers a variety of car rental services that its competitors cannot match.
– Hertz Global Holdings Inc ($NASDAQ:HTZ)
Hertz Global Holdings Inc is a holding company that operates through its subsidiaries. The company’s principal business is car rental. It has a market cap of 6.63B as of 2022 and a Return on Equity of 70.21%. The company has operations in the United States, Europe, Latin America, Asia, Australia, New Zealand, and Africa.
– Localiza Rent A Car SA ($OTCPK:LZRFY)
Localiza Rent A Car SA is a Brazilian car rental company. The company has a market cap of 12.8B as of 2022 and a return on equity of 32.33%. Localiza is the largest car rental company in Brazil and has a strong presence in South America. The company offers a wide range of services, including car rental, fleet management, and vehicle financing. Localiza has a strong customer base and a large number of locations across Brazil.
– HyreCar Inc ($NASDAQ:HYRE)
HyreCar Inc. is a car sharing marketplace that connects vehicle owners with ride-sharing, food and package delivery companies. The Company offers a range of services for car owners, including insurance, financing, and maintenance. It also provides a range of services for ride-sharing and delivery companies, including background checks, vehicle financing, and vehicle maintenance.
Summary
Analyst consensus for AVIS is strong and the stock is currently trading at a price-to-earnings (P/E) ratio that is slightly lower than its peers within the Rental & Leasing Services industry. At the same time, analysts believe that AVIS has strong fundamentals and has the potential to generate strong returns over the longer term. Additionally, AVIS has a relatively low debt-to-equity ratio which suggests that it will be able to pay down any debt it takes on without taking on too much risk. Overall, analysts remain positive on AVIS and recommend the stock as a buy.
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