Morningstar | We Expect Automotive Holdings to Capture Market Share in a Falling Market
Automotive Holdings Group benefits from structural advantages of size and scale. The automotive division is somewhat insulated from shifts in consumer preference by offering multiple automotive brands, which gives it flexibility in adjusting its brand mix. In the automotive division, we expect the company to expand its top line ahead of the market, driven by both acquisitions and greenfield site developments. In the long run, this is likely to further improve the company's economies of scale, resulting in better floor-plan finance rates and improved margins. We rate the company as having a narrow economic moat, with return on invested capital forecast to comfortably exceed the cost of capital for the next decade.Automotive Holdings Group is an automotive retailing group in Australasia. Co. has two logistics divisions: Automotive, which operates passenger vehicle and truck and bus dealerships in Queensland, New South Wales, Victoria and Western Australia, and passenger vehicle dealerships in Auckland, New Zealand and Refrigerated Logistics, which provides cold storage and transport operations in every Australian mainland state through Rand, Harris, Scott's Refrigerated Freightways and JAT Refrigerated Road Services. As of June 30, 2016, Co.'s automotive segment had 188 motor vehicle franchises at 108 dealership locations operating within Australia and New Zealand.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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