ASBURY AUTOMOTIVE GROUP (ABG) Stock Fundamental Analysis
NYSE:ABG - New York Stock Exchange, Inc. - US0434361046 - Common Stock - Currency: USD
Overall ABG gets a fundamental rating of 5 out of 10. We evaluated ABG against 121 industry peers in the Specialty Retail industry. ABG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ABG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ABG was profitable.
ABG had a positive operating cash flow in the past year.
In the past 5 years ABG has always been profitable.
ABG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABG's Return On Assets of 4.06% is fine compared to the rest of the industry. ABG outperforms 64.46% of its industry peers.
Looking at the Return On Equity, with a value of 11.46%, ABG is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
ABG's Return On Invested Capital of 8.02% is fine compared to the rest of the industry. ABG outperforms 68.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABG is below the industry average of 12.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROIC | 8.02% |
ROA(3y)7.51%
ROA(5y)7.22%
ROE(3y)21.73%
ROE(5y)23.68%
ROIC(3y)9.95%
ROIC(5y)9.48%
1.3 Margins
ABG's Profit Margin of 2.42% is fine compared to the rest of the industry. ABG outperforms 61.98% of its industry peers.
In the last couple of years the Profit Margin of ABG has remained more or less at the same level.
ABG has a Operating Margin of 5.67%. This is in the better half of the industry: ABG outperforms 69.42% of its industry peers.
ABG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.06%, ABG is doing worse than 85.12% of the companies in the same industry.
ABG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% |
OM growth 3Y-10.52%
OM growth 5Y4.29%
PM growth 3Y-22.64%
PM growth 5Y-0.38%
GM growth 3Y-3.91%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABG is creating some value.
ABG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABG has more shares outstanding
The debt/assets ratio for ABG has been reduced compared to a year ago.
2.2 Solvency
ABG has an Altman-Z score of 2.93. This is not the best score and indicates that ABG is in the grey zone with still only limited risk for bankruptcy at the moment.
ABG has a Altman-Z score of 2.93. This is in the better half of the industry: ABG outperforms 67.77% of its industry peers.
ABG has a debt to FCF ratio of 9.51. This is a negative value and a sign of low solvency as ABG would need 9.51 years to pay back of all of its debts.
ABG has a Debt to FCF ratio (9.51) which is comparable to the rest of the industry.
ABG has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
ABG has a worse Debt to Equity ratio (1.24) than 62.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.91
WACC8.81%
2.3 Liquidity
ABG has a Current Ratio of 1.25. This is a normal value and indicates that ABG is financially healthy and should not expect problems in meeting its short term obligations.
ABG has a Current ratio (1.25) which is in line with its industry peers.
ABG has a Quick Ratio of 1.25. This is a bad value and indicates that ABG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ABG (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for ABG have decreased strongly by -14.55% in the last year.
The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
ABG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.
ABG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.98% yearly.
EPS 1Y (TTM)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
3.2 Future
The Earnings Per Share is expected to grow by 14.95% on average over the next years. This is quite good.
ABG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y-0.53%
EPS Next 2Y-1.42%
EPS Next 3Y7.53%
EPS Next 5Y14.95%
Revenue Next Year6.05%
Revenue Next 2Y5.1%
Revenue Next 3Y6.12%
Revenue Next 5Y8.41%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.40, the valuation of ABG can be described as reasonable.
ABG's Price/Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 88.43% of the companies in the same industry.
ABG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
Based on the Price/Forward Earnings ratio of 8.52, the valuation of ABG can be described as reasonable.
ABG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABG is cheaper than 85.12% of the companies in the same industry.
ABG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABG indicates a somewhat cheap valuation: ABG is cheaper than 65.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABG is valued cheaply inside the industry as 83.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
ABG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-1.42%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
No dividends for ABG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ABG (5/23/2025, 3:53:39 PM)
225.25
-1.36 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.04%
Inst Owner Change-1.81%
Ins Owners0.49%
Ins Owner Change4.23%
Market Cap4.43B
Analysts52
Price Target253.47 (12.53%)
Short Float %5.39%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.06%
Min EPS beat(2)1.09%
Max EPS beat(2)19.03%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-13.59%
Max EPS beat(4)19.03%
EPS beat(8)3
Avg EPS beat(8)-1.4%
EPS beat(12)6
Avg EPS beat(12)1.19%
EPS beat(16)10
Avg EPS beat(16)6.68%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)7.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)7.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)-12.29%
PT rev (3m)-3.18%
EPS NQ rev (1m)2.6%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0.83%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 8.52 | ||
| P/S | 0.26 | ||
| P/FCF | 9.18 | ||
| P/OCF | 6.16 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.12 |
EPS(TTM)26.83
EY11.91%
EPS(NY)26.45
Fwd EY11.74%
FCF(TTM)24.55
FCFY10.9%
OCF(TTM)36.58
OCFY16.24%
SpS871.61
BVpS184.31
TBVpS-8.63
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.46% | ||
| ROCE | 12.75% | ||
| ROIC | 8.02% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 14.13% | ||
| OM | 5.67% | ||
| PM (TTM) | 2.42% | ||
| GM | 17.06% | ||
| FCFM | 2.82% |
ROA(3y)7.51%
ROA(5y)7.22%
ROE(3y)21.73%
ROE(5y)23.68%
ROIC(3y)9.95%
ROIC(5y)9.48%
ROICexc(3y)10.15%
ROICexc(5y)9.64%
ROICexgc(3y)19.39%
ROICexgc(5y)17.84%
ROCE(3y)15.35%
ROCE(5y)14.97%
ROICexcg growth 3Y-8.23%
ROICexcg growth 5Y3.87%
ROICexc growth 3Y-2.42%
ROICexc growth 5Y-4.41%
OM growth 3Y-10.52%
OM growth 5Y4.29%
PM growth 3Y-22.64%
PM growth 5Y-0.38%
GM growth 3Y-3.91%
GM growth 5Y1.13%
F-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 9.51 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 313.25% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 68.72% | ||
| Profit Quality | 116.21% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.93 |
F-Score7
WACC8.81%
ROIC/WACC0.91
Cap/Depr(3y)264.46%
Cap/Depr(5y)326.79%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.45%
Profit Quality(3y)56.3%
Profit Quality(5y)113.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.55%
EPS 3Y-0.07%
EPS 5Y23.59%
EPS Q2Q%-5.41%
EPS Next Y-0.53%
EPS Next 2Y-1.42%
EPS Next 3Y7.53%
EPS Next 5Y14.95%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y20.44%
Revenue growth 5Y18.98%
Sales Q2Q%-1.25%
Revenue Next Year6.05%
Revenue Next 2Y5.1%
Revenue Next 3Y6.12%
Revenue Next 5Y8.41%
EBIT growth 1Y-8.14%
EBIT growth 3Y7.77%
EBIT growth 5Y24.08%
EBIT Next Year1.8%
EBIT Next 3Y10.29%
EBIT Next 5Y8.22%
FCF growth 1Y35.41%
FCF growth 3Y-25.95%
FCF growth 5Y4.77%
OCF growth 1Y56.77%
OCF growth 3Y-16.76%
OCF growth 5Y13.92%