CluenexAvis Budget Group CAR
Avis Budget Group scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Avis Budget Group does
Avis Budget Group rents passenger cars and trucks to corporate and leisure travelers through its Avis and Budget brands, making money via rental fees and optional services. The company is trying to boost profitability by increasing fleet utilization amid flat demand.
- What it does best
Avis extracts top-decile pricing power from its global fleet infrastructure, posting a gross margin of 60.1% that dwarfs Uber's 36.8%. This edge relies on complex airport concession rights and localized fleet density that take years to replicate.
- The main risk
A massive negative free cash flow of $11.4 billion driven by heavy vehicle depreciation and capital expenditures threatens solvency if used vehicle pricing drops further.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin is 11.3% while net margin sits at -5.4%, squeezed by soaring vehicle acquisition and fleet maintenance costs. Scale does not protect margins during downcycles.
Exclusive airport real estate concessions and massive capital requirements form its moat, locking in travelers where alternatives are scarce. Its gross margin ranks in the sector's top decile.
Revenue shrank 1.2% to $11.7 billion, continuing a multi-year stagnation pattern where top-line growth is fading compared to historical averages.
Net debt sits at $24.7 billion with interest coverage at 3.1x, leaving debt costs heavy. Free cash flow is deeply negative at -$11.4B, pointing to softening financial footing.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $653K outside pre-planned sales.
Our sealed record on CAR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Avis Budget Group scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $653K outside pre-planned sales.
Nov 2, 2026, after the close.
See CAR today
- Today's verdict on CAR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Avis Budget Group (CAR)”, https://cluenex.com/stocks/car/, data as of Oct 10, 2026.