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This ASX car stock is tanking. Has it overreached?

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Consumer Staples and Discretionary Shares

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  • At $19.52, Eagers Automotive Ltd shares are down around 14% over the past month and 26% over the past 12 months.
  • The $5 billion ASX car stock now represents more than 33 car brands and 11 truck and bus brands.
  • On a FY25 pro-forma basis, the combined group would have generated $18.7 billion of revenue and $968.6 million of EBITDA.
  • Eagers has entered a non-binding agreement to acquire a 50% stake in Zagame Automotive Group, the Melbourne and Adelaide luxury-car retailer, via a joint venture with founder Bobby Zagame.

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This ASX car stock is hovering near a 52-week low, and investors have plenty to digest. At $19.52, Eagers Automotive Ltd shares are down around 14% over the past month and 26% over the past 12 months.

Eagers is Australia's largest automotive retailer, sitting across a sprawling portfolio of brands including Toyota, Kia, Mercedes-Benz, Audi, Geely, and BYD. The $5 billion ASX car stock now represents more than 33 car brands and 11 truck and bus brands.

In April, Eagers completed its 65% investment in Canadian dealership giant CanadaOne Auto, effectively creating a much larger international automotive retail platform. On a FY25 pro-forma basis, the combined group would have generated $18.7 billion of revenue and $968.6 million of EBITDA.

Eagers agreed to invest 49% in Grand Motors Group, covering dealerships representing Toyota, BMW, MINI, Kia, Mazda, and Subaru, while also snapping up two Audi dealerships from Zagame.

Eagers has entered a non-binding agreement to acquire a 50% stake in Zagame Automotive Group, the Melbourne and Adelaide luxury-car retailer, via a joint venture with founder Bobby Zagame. The business pulled in about $600 million of revenue in the year to June 2026.

Shortened to 1 minute of reading, this version reads 13 on the Niral Score.

You are reading our version, not theirs. This is The Motley Fool Australia's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

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Outlet Niral ScoreAdjectivesHappiness
The Motley Fool Australiaas they published this story 19.1 19 50.4
Mundane Readneutralized from The Motley Fool Australia 16.8 17 50.4

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